OFWs in Malaysia told: Don’t use passports as collateral for loans

The Department of Foreign Affairs (DFA) on Tuesday reminded overseas Filipino workers (OFWs) in Malaysia to avoid using their passports as collateral for personal loans transacted with Malaysian lending institutions. The DFA issued the statement after it received reports through the Philippine Embassy in Kuala Lumpur using their passports as collateral to collect loans ranging from 1,000 to 5,000 Malaysian ringgit (about P14,000 to P70,000) from lending institutions in the foreign country. "Filipinos are said to be not concerned over the importance of their passports because they can simply lodge a police report for their ‘misplaced’ or ‘lost’ passport, which they can submit to the Embassy as part of their application to have their passport replaced," the DFA said in a statement posted on its website. The department warned that OFWs caught using their passports as collateral may be charged with violation of the Passport Law (Republic Act 8239) and may have their passport permanently cancelled. Filipinos who engage in this illegal activity might even "compromise their safety" if they are caught by their lenders before they leave Malaysia, the DFA said. More than 1,000 Filipinos are currently working in Malaysia based on latest records from the Philippine Overseas Employment Agency. — RSJ, GMANews.TV