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ATM pawnshop
#11
(01-03-2018, 01:27 PM)Heart Wrote: Have you ever heard that you can actually pawn your ATM? Here in the Philippines this type of loan is becoming a trend. An ATM where your monthly salary is going can be pawn, its like a collateral but the difference is they will keep your ATM and you can only get it every payday to withdraw your money and pay them, then you will have to return them your ATM it will serve as their assurance that you are going to really pay them. It usually works to those who does not have anything valuable except their ATM.

This offer looks exciting and nice for anyone in need of money to try out. I mean by collecting such loans, the beneficiaries can be able to enjoy the feeling of having money as they wish and that's good at the beginning. However, there are two issues that might arise from taking such loans. 

The first is that one could tend to go on a shopping spree and end up spending the loaned amount before the month runs out and that might bring some kind of hardship towards the end of the month. So, those that ain't disciplined shouldn't think of going for this type of loan. 

The second point I want to make is the need to compare the cost of getting such loans, that's the interest rate, with the cost of getting alterative loans from other sources before going into such plan.

So, these two points should be addressed to avoid making wrong financial decisions. 
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#12
(01-04-2018, 06:28 AM)Camilla Wrote: It's actually an old practice that came with the prevalence of ATM cards for payroll use. When an ATM is pawned, it is not returned to the borrower until the loan amount is paid in full. It is the lender that withdraws the salary, deducts the amortization, and delivers the balance to the borrower. This means giving your PIN away to the lender.

Unless a lender has tie ups with the Accounting or HR section of a company, this is quite risky for the lender. It's so easy for the borrower to obtain a replacement for an ATM card just by declaring to the bank that the old ATM card was lost. The company need not even know that the old card was replaced because they only need the account number to process salaries.  Hence, the lender could be holding a useless collateral.

I don't tthink it works by giving your pin. What I know is you are going to them when it is payday then you are the one to get the salary withdrawn. Someone will accompany you while withdrawing or they do have ATM machine near them since you still need to give them back your ATM. People knew that by giving your pin is just stupid so I don't think Lender do creates such rule they will just shoo there potential clients if that's the case.

(01-04-2018, 08:15 PM)Rumu Wrote: This is one very strange but interesting topic I must say. Are you for real? Can someone actually pawn their atm cards? Pardon me for saying, but I don't think its such a good idea doing such. It's just to risky for me to even consider such transactions. What if something goes wrong like hacking? I think this is by far the most unconventional type of loan I've heard about.

Yeah it is for real. If you're in desperate need of fast money unsecured loans will be most people savior. It's risky we can't deny that, this is why people doing this type of transaction should have known each other personally.
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#13
(01-05-2018, 04:05 AM)aecel Wrote:
(01-04-2018, 09:16 PM)Setari Wrote: You can pawn a debit card? Oh man, lemme go pawn mine right now for some cash when it has $0.03 cents on it lol. I've never heard of this, not sure why pawn shops would accept this kind of thing, but, that's their problem. I wonder what the process is though.

It's not actually a debit card it's a payroll ATM card for employees. They will pawn their payroll atm to the lender as a collateral or just giving assurance that they will get paid on payday. So you must have a regular job before you can pawn your payroll atm. It's basically pawning to a person that they know personally like friends, relatives or someone accepting payroll atm, not in the pawnshops. Sometimes if the lenders are kind they won't charge interest they just needed to give back the money they owe, payroll atm serves only as a collateral.

Thank you for explaining this, I was going crazy for a moment there. An ATM here is the machine you use to withdraw money from your bank account and nothing more than that, so I was very confused about what was going on in this thread.
Although the idea of someone prying an ATM out of a shop wall and dragging it to the local pawn shop is pretty entertaining Wink
If I'm understanding correctly, an ATM payroll card is so you get your pay from it in cash rather than to an account? We just get paid directly into our bank accounts.
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#14
This is the first time I am hearing of something like this. I guess it could work. I would have to read reviews about it though to see if this is a good way to utilize your money. It might be a bit difficult to do. I don't think it is offered in this country to the best of my knowledge.
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#15
(01-04-2018, 09:16 PM)Setari Wrote: You can pawn a debit card? Oh man, lemme go pawn mine right now for some cash when it has $0.03 cents on it lol. I've never heard of this, not sure why pawn shops would accept this kind of thing, but, that's their problem. I wonder what the process is though.

Pawnshop don't accept debit card or ATM card. It is only person to person agreement. The lender will lend you money exchange of your ATM Cash card. 
If you really need cash badly and if you are an employee that has an ATM Cash card, you can use that, pawn your ATM Cash card or savings card to some lender. That will be your collateral and they will withdraw your money from your cash card and less the amount you borrowed from them Thats it.
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#16
Filipino people are very creative specially in producing money. I believe this practice was commonly done by local government employees and sad to say teachers were they have to wait every two months for their salaries to come. And now the practice at it is, is so common that is being taken advantage by the lenders and also the borrowers.
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#17
Big Grin 
(01-07-2018, 01:40 AM)Sase3119 Wrote:
(01-05-2018, 04:05 AM)aecel Wrote:
(01-04-2018, 09:16 PM)Setari Wrote: You can pawn a debit card? Oh man, lemme go pawn mine right now for some cash when it has $0.03 cents on it lol. I've never heard of this, not sure why pawn shops would accept this kind of thing, but, that's their problem. I wonder what the process is though.

It's not actually a debit card it's a payroll ATM card for employees. They will pawn their payroll atm to the lender as a collateral or just giving assurance that they will get paid on payday. So you must have a regular job before you can pawn your payroll atm. It's basically pawning to a person that they know personally like friends, relatives or someone accepting payroll atm, not in the pawnshops. Sometimes if the lenders are kind they won't charge interest they just needed to give back the money they owe, payroll atm serves only as a collateral.

Thank you for explaining this, I was going crazy for a moment there. An ATM here is the machine you use to withdraw money from your bank account and nothing more than that, so I was very confused about what was going on in this thread.
Although the idea of someone prying an ATM out of a shop wall and dragging it to the local pawn shop is pretty entertaining Wink
If I'm understanding correctly, an ATM payroll card is so you get your pay from it in cash rather than to an account? We just get paid directly into our bank accounts.

Haha Sorry, you got confused. You are right ATM stands for Automated Teller Machine but here they described it as Payroll ATM card they used to say it as ATM to shorten the word so it's kind of a habit calling it that way but it's wrong actually Haha Big Grin . ATM Payroll card is only distributed by your employer you won't get paid directly to your bank accounts or either in cash. The employer needs to issue a payroll card so it could be directly deducted from their funds. They will withdraw their salaries using their cards through ATM. You can also get paid directly to your bank accounts only if you're a freelancer but if you work in a corporate industry they will issue a payroll card it's easier for the company to monitor the salaries of their employees. It's kind of mandatory here to issue a payroll card for any employees.
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#18
A lender should have connection with the accounting of an organization, this is very dangerous for the bank. It's so natural for the borrower to acquire a substitution for an ATM card just by pronouncing to the bank that the old ATM card was lost. The organization require not realize that the old card was supplanted in light of the fact that they just need the record number to process compensations. Henceforth, the bank could be holding a pointless insurance.
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#19
(01-08-2018, 01:28 AM)kaisantos2229 Wrote: Filipino people are very creative specially in producing money. I believe this practice was commonly done by local government employees and sad to say teachers were they have to wait every two months for their salaries to come. And now the practice at it is, is so common that is being taken advantage by the lenders and also the borrowers.

Yes, you are right, sad to say the teachers are the common practitioners of this kind of transaction. Because they cannot loan anymore from banks due to the limit in NTHP, they would pawn their ATM cards to lenders just to get immediate cash. Some of my co-workers are doing this, that is why during payday, when asked if there is already salary, they would joke and say that what's salary?

For me, I found it helpful though, because many people are patronizing it, and so far, I haven't heard of any problem or complain about this practice. Though I would not allow my self to fall into that kind of situation.
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#20
There's a lot of people in my company who do this transaction. They surrender their payroll atm card to someone who lends them money. Every payday that lender withdraws the money from the card and automatically deduct the debt.
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