FILIPINOS living in Bahrain have been warned against using their passport as collateral to borrow money from loan sharks.
The Philippines Embassy has issued an advisory warning to its nationals that passports retained as security deposit by illegal money lenders, whether individuals or companies, in exchange for loans will be rendered invalid.
It has also warned Filipino money lenders who fail to return the seized passports to the embassy that they would be blacklisted by the Bureau of Immigration in Manila.
“The embassy informs the public that using Philippine passports as collaterals for any loan or obligation is strictly prohibited,” said the advisory.
Cancelled
“Philippine passports that are reported as being held by another person as guarantee for loans or obligations will be automatically cancelled upon notice from or by the holder of the said passport.”
It explained that passport holders who use the document as collateral were in violation of the law, while creditors or establishments that fail to return the official document will be included in “the Department’s Lookout Lost and shall be recommended for inclusion in the Bureau of Immigration’s Blacklist”.
The latest advisory comes weeks after Hong Kong police raided a company and seized 1,400 passports that were illegally used as collateral for loans to Filipinos.
Loan sharks often retain the personal documents of those they lent money to, such as passports, CPR cards and ATM cards.
They also charge inflated interest, meaning those who borrow money remain in debt long after they have paid back the initial principal amount.
Having handed over personal documents to secure illegal loans, borrowers are unable to leave the country to escape their plight.
Philippines Ambassador Alfonso Ver told the GDN the embassy was working to end the practice of nationals using their passports as collateral for illegal loans.
“We have good co-operation with the police in Bahrain in such cases where passports are kept as security deposits by money lenders,” he said.
“If the individuals or establishments fail to return those passports to us, which they have kept as a guarantee for the loans, then those passports will be cancelled.
“The passport holder can visit the embassy and submit a request with a letter stating details of his passport, following which a new travel document will be issued.
“Circulars will also be shared with other embassies informing them that the passport retained by individuals or establishments as collateral are no longer valid.”
Withholding a passport with the intention of exploiting an individual constitutes a human trafficking violation, according to International Organisation of Migration (IOM) chief of mission (Bahrain) Mohamed El Zarkani who was quoted in the GDN on Monday.
The GDN has reported on a number of cases in which Indian nationals ended their lives after falling victim to the black market system of loans.
Community volunteer group, Palisha Virudha Samithi (Committee Against Interest), earlier this month recorded at least two calls a week on its hotline from expatriates complaining about loan sharks operating in the country.
sandy@gdn.com.bh
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