The Social Security System (SSS) said it has started notifying its members via text messages of late payments or past due on their short-term member loans, such as salary or calamity loans, so they could eventually renew their loans after paying them off.
Senior vice president for Lending and Asset Management Group, Pedro Baoy, said that “SSS will now regularly issue these messages to its loan borrowers, ensuring that they are promptly reminded whenever they miss their loan payments, or have loans that have remained unsettled after its maturity.”
Baoy encouraged members to log in to their My.SSS account to check if their previous approved loans have been fully settled to avoid penalties.
He clarified that SSS member-borrowers, who are consistently updated on their monthly loan amortizations, will not receive these payment notices.
Baoy said they started sending payment notifications last month to remind members-borrowers of the due dates for their monthly loan payments.
“We send loan billing statements to our member-borrowers through their registered email address…(but) most members do not open their email inboxes. Most of them carry their mobile phones wherever they go, so we saw text alerts as a great way to remind them,” Baoy said in a statement Tuesday, adding that these payment notices aim to help member-borrowers avoid accumulating penalties for late payments and regain their good standing with the SSS so they can reapply for loans.
“If they miss their loan payments, they will be charged a one-percent monthly penalty on unpaid principal and interest until fully paid. If their loan remains unsettled for over five years, the incurred penalties will exceed the outstanding principal amount and interest. We do not want that to happen to our member-borrowers, so we are helping them avoid reaching that situation,” Baoy explained.
He also advised members to be vigilant and regularly check their SSS loan records by accessing their My.SSS account. “If they do not have a My.SSS account, we suggest seeking assistance from our e-centers located in our branch offices.”
Baoy reminded them that whenever they transfer to a new employer, they must inform their new employer about their existing loan obligations with the SSS and allow them to deduct loan payments from their salary, including any interest or penalty incurred due to late remittance. ||
