SSS turns to SMS for loan notifications

MANILA, Philippines — State-run pension fund Social Security System (SSS) has started to utilize text messages to remind its members to settle their loan obligations on time.

In a statement, the pension fund for the private sector said it began notifying SSS members via short message service (SSS) of late payments or past due on their short-term loans.

Previously, SSS senior vice president Pedro Baoy said SSS sends loan billing statements to member-borrowers through their registered email address.

“However, unlike reading text messages, most members do not open their email inboxes. Most of them carry their mobile phones wherever they go, so we saw text alerts as a great way to remind them,” Baoy said.

He emphasized that the new payment notices aim to help borrowers avoid accumulating penalties for late payments and regain their good standing with SSS.

This would allow members to reapply for loan programs with ease.

It should be noted that if a member misses a loan payment, he or she will be charged a one percent monthly penalty on unpaid principal and interest until fully paid.

If a certain loan remains unsettled for over five years, the incurred penalties will exceed the outstanding principal amount and interest.

Baoy clarified that SSS member-borrowers who are consistently updated on their monthly loan amortizations will not receive SMS payment notices.

Further, SSS encouraged members with unpaid short-term loans to take advantage of the consolidation and condonation of penalties.

This program will combine the principal and interest of a member’s past-due short-term loan into one consolidated loan.