The Department of Education, through its Press Release, has reminded all private lending entities not to impose any penalties or fines to personnel due in line with the expected delays of remittances to comply with their loan obligations.
Below is the full text of the Press Release from DepEd.
PASIG CITY, March 24, 2020 – As further support to its personnel, the Department of Education (DepEd) has reminded private lending institutions (PLIs), accredited under the Department’s Automatic Payroll Deduction System (APDS) program, to comply on not charging any penalties, fines, or surcharges to DepEd personnel due to delays brought by the public health situation.
In a general letter to private entities, Undersecretary for Finance Annalyn Sevilla said that delays are anticipated on the processing and releasing of remittances with regard to the payment of loan obligations of concerned borrowers due to the strict implementation of home quarantine in all households and work-from-home arrangement in the Executive Branch.
Under paragraph 4.7.3 of the Terms and Conditions of the APDS Accreditation (TCAA), the Lender/Entity shall not charge penalties, fines, surcharges due to delays of payments, for failure of the DepEd to remit on time due to errors, inadvertence, force majeure, or any extreme circumstance, among others.
In addition, DepEd also encouraged all APDS-accredited PLIs to not impose additional interest due to the said delays on the release of remittances on loans. This is consistent with Item 2 [Regulatory Relief Package to Bangko Sentral ng Pilipinas (BSP) Supervised Financial Institutions] of the Primer on BSP Memorandum No. M-2020-008 regarding the BSP’s action on COVID-19 Pandemic.
DepEd PRESS RELEASE
DepEd reminds private lending entities not to charge penalties, fines to personnel - PRESS RELEASE
Reviewed by Anonymous
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March 25, 2020
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Reviewed by Anonymous
on
March 25, 2020
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