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POEA reminds OFWs not to use passport as collateral for loans

Posted on April 16, 2015

MANILA, April 16 (PNA) — The Philippine Overseas Employment Administration (POEA) reminded Overseas Filipino Workers (OFWs) that using Philippine passport as collateral is prohibited so as not to risk of having a cancelled travel document.

The agency reiterated the advisory issued by the Consulate General of the Philippines on April 14 to Filipinos for them not to use the travel document as collateral or guarantee for loans/obligations.

“Philippine passports reported held as guarantee or collateral for loans/obligations are automatically cancelled upon notice by the passport holders,” said the order based on citing Foreign Service Circular No. 214-99 dated Aug. 19, 1999.

The order added, “The cancellation of the said passports therefore renders the documents invalid for purpose of guaranteeing payment of loans/obligations.”

At the same time, the Consulate General also reminded the Filipino community that all Philippine passports are property of the Government of the Republic of the Philippines and shall not be used as collateral for any loans/obligations.

Meanwhile, Administrator Hans Cacdacwarned recruitment agencies to stop collecting placement fees directly or indirectly from domestic workers, or else face the penalty of license cancellation.

He issued the warning after ordering the cancellation of license of Jao International Manpower Services for charging placement fees amounting to Php 110,000 from a household service worker (HSW) it deployed to Romania.

The recruitment firm has violated POEA Governing Board (GB) Resolution No. 6, Series of 2006.

“The GB Resolution prohibits the collection of placement fee from household service workers, whether collected prior to their deployment or on-site through salary deduction. Any collection in violation of the said prohibition is considered a grave offense punishable with the penalty of cancellation of license,” Cacdac said. (PNA)

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