Home Credit Philippines is alerting its customers to a rise in fraudulent schemes. Scammers are tricking people into illegally turning their appliance loans or shopping credit into cash, leading to unwanted debt and potential legal trouble.
In these scams, con artists contact borrowers with pre-approved loan offers. They pose as helpers, suggesting the customer purchase an item like a phone on credit. The scammer then offers to buy the device for cash, sometimes even assisting with the initial payment to seem legitimate.
A similar trick targets a customer’s HCQWARTA credit limit. Fraudsters falsely promise they can convert this shopping line into instant money, claiming to manage the entire process.
The aftermath leaves the customer in a difficult position. After the scammer takes the item or the cash, they vanish. On the other hand, the borrower remains legally bound to repay the full loan amount to Home Credit.
Missed payments will damage the customer’s credit history and can result in default. This affects their ability to get loans, housing, or other services in the future.
These actions are also illegal under the Anti-Financial Account Scamming Act. The crime of “money muling” can lead to a prison sentence of six to eight years, plus fines reaching up to Php500,000.
Home Credit advises Filipinos to only use official channels for loans and payments. Any offer to transform credit into cash is a scam. Borrowers should never share account details or let another person handle their loan transactions.