Investigate Lending Companies Imposing Excessive Interest Rates on Loans to Teachers

A Resolution Directing the Appropriate Committee of the House of Representatives to Conduct an Investigation, In Aid of Legislation, into Lending Companies and Individuals imposing Excessive Interest Rates on Loans to Public School Teachers

WHEREAS, it was reported by the Department of Education that, as of 2016, the accumulated debt of public school teachers in the country has reached a staggering Php 300 billion. According to DepEd, the teachers have incurred Php178 billion in loans from private lending institutions and Php123 billion in credit from the Government Service System.

WHEREAS, according to the Securities and Exchange Commission (SEC), public school teachers are common victims of lending companies or individuals imposing excessive interest rates, such implies an annual interest rate of 20 percent.

WHEREAS, because of low salaries, public school teachers often to 5-6 loans, in order to meet their basic needs and the needs of their families. This is an oppressive scheme, and because of the high-interest rates, incapacitates them to pay off their debts.

WHEREAS, one of the campaign promises of President Rodrigo Duterte was a clampdown on the 5-6 lending scheme, which preys on ordinary Filipinos and small enterprises.

WHEREAS, public school teachers are providing true public service, and serving the country, unselfishly, despite the small pay that they are receiving. They are critical players in nation-building. We need to provide teachers with protection from companies and individuals who are victimizing them into taking out loans with exorbitant rates. Thus, there should be an investigation in order to put a stop to these schemes and protect teachers.

THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the House of Representatives direct the appropriate Committee to conduct an investigation, in aid of legislation, into lending companies and individuals imposing excessive interest rates on loans to public school teachers.

WINNIE CASTELO