POEA reminds OFWs not to use passport as collateral for loans

The Philippine Overseas Employment Administration (POEA) on Thursday reminded overseas Filipino workers not to use their passport as collateral for loans or obligations.

Citing Foreign Service Circular No. 214-99 dated August 19, 1999, POEA said in an advisory that passports used as collateral are automatically cancelled "upon notice by the passport holders."

“Philippine passports reported held as guarantee or collateral for loans/obligations are automatically cancelled upon notice by the passport holders,” the POEA said.

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

The Consulate General of the Philippines added that passports must not be used as guarantees because they are government property.

Administrator Hans Cacdac also reiterated the rule against collecting placement fees after POEA cancelled the license of a recruitment firm for allegedly charging fees up to P110,000 from a domestic helper deployed to Romania.

The recruitment firm, identified as Jao International Manpower Services, 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. —Rie Takumi/KBK, GMA News

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