Monday, June 12, 2017

Scam 101: How Protect Yourself from Auto Loan Scams

A car loan plan is proven to be a great help in purchasing your dream car without burning a hole in your pocket. While a guaranteed loan approval sounds great, it may not be as good of a deal as you had hoped. What will you do if your auto loan dealer turns out to be bogus?

Earlier this year, the Philippine National Police (PNP) exposed the “Rent-Sangla” scheme which involves tricking individuals into applying for an auto loan and getting into the rent-a-car business in exchange of a promise of getting a higher amount than their monthly amortization as payment for applying for the loan. However, at the end of the day, these individuals will end up being victims with a debt to pay for a vehicle not in their possession. 

The PNP reported that this scheme involves billions, with over 1,800 motor vehicles recovered as of early this year.

In these crucial times where scams involving loans are prevalent, PSBank Vice President for Information Security Dan Jose D. Duplito shares several ways on how not to fall victim of these schemes:  

Do not apply for loans on behalf of others. You are legally responsible for loans that you apply for. Avoid taking out loans for others and shoulder the legal obligations which can possibly damage your credit score/profile.

On the other hand, there are also several ways you can acquire unwanted obligations, specifically on your credit card. PSBank reminds the public that you should watch out for these marketing tactics that companies do resulting in your credit card being charged unintentionally:

Immediately report lost credit cards. In the unfortunate event that you lose your card or your wallet and device where your credit card details are stored, immediately report it to your card issuer to prevent unauthorized use of your card. Never share details contained in your credit card to other individuals as it is easy to transact online even without your permission. 

Avoid sharing your personal information. Be aware of the purpose of sharing your personal information and ensure that you do not provide copies, physical or digital, of your identification documents to those you do not intend to transact with. Should you need to provide your personal information, ensure that you are transacting with legitimate organizations and individuals by first verifying their number and email addresses.

Be cautious when availing free trial services. The popularity of free trial services has been on the rise given the number of subscriptions available online. In these cases, personal information and credit card details are required upon signing up to enjoy free trial services. If you do not disable or unsubscribe to these services after your free trial, your membership can be automatically renewed for a fee, charging your credit card.

Be vigilant. If you think that your bank account has been compromised, call your bank’s customer service hotline to report and verify any suspicious activities in your account. At PSBank you can conveniently and closely monitor any movements in your account through the PSBank Mobile App and PSBank Online.

“Information security is a crucial and growing concern for us and we caution the public to be vigilant of scams used to deceive people to share their personal information, especially if it is financial in nature. At PSBank, we want to ensure that our clients are always protected against unwanted loans and obligations so as to not damage their credit profile and pay for things they are tricked into,” said PSBank Vice President for Information Security Dan Jose D. Duplito.


“Be Aware” is PSBank's consumer protection campaign that provides clients with the necessary information to protect them and their hard-earned savings against scams.

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