Pasalo Auto Loans Likely Scams: BSP, Warns Public Of Organized Crime

BSP Warns Public Against Likely Scams Like “Pasalo” Auto Loans

PASALO LOANS LIKELY SCAMS – Sometimes, things are just too good to be true, much “Pasalo Auto Loans”.

Under this scheme, the people who conduct the “Pasalo” Loans promise buyers massive money-saving opportunities. However, the Bangko Sentral Ng Pilipinas (BSP) warned the public regarding this likely scam.

In an advisory, the BSP issued a memo regarding organized crimes conducted through auto loan services. Furthermore, the BSP explained that the Pasalo Schemes target vulnerable car buyers.

Pasalo Auto Loans Likely Scams: BSP, Warns Public Of Organized Crime

According to the BSP, the Pasalo syndicate would buy a vehicle from a seller with an agreement to assume payments for the auto loan. But, the syndicate member would have no intention of paying the remaining amortizations.

Afterward, they would sell or dispose of the vehicle and gain profits through falsifying documents. At this point, the “end-buyer” would have “no rights over the vehicle”.

Through this, the original seller would have to default back to paying for the auto loan. Then, the end buyer’s purchased vehicle would be repossessed leaving him or her with nothing.

Fortunately, the BSP said that the original certificate of registration can still be recovered from the Land Transportation Office. Additionally, the car can still be recovered.

“This can be done through the assistance of Law Enforcement Agencies (LEAs) that can flag/issue an alert for the vehicle”. Sadly, the end-buyer of the vehicle would get the short end of the stick as he or she can no longer recover any payment made for the stolen vehicle.

The BSP advised BSFIs to strictly adhere to and strengthen the implementation of Anti-Money Laundering (AML) regulations on the following:

  • customer identification and verification procedures
  • ongoing monitoring of customers and their transactions
  • suspicious transaction reporting

Moreover, an ongoing AML training program that includes controls relating to partner/accredited car dealers would also be conducted. What do you think about this? Leave your comments below.

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