The Department of Education (DepEd) has issued an order announcing that the license to operate of Manila Teachers' Savings and Loan Association, Inc. (MTSLAI), a loan agency for teachers, has been revoked.
Under DepEd Order No. 005 dated February 20 and signed by Education Secretary and Vice President Sara Duterte, it said that the Bangko Sentral ng Pilipinas (BSP) revoked MTSLAI's accreditation for violating Republic Act No. 8367, or the Revised Non-Stock Savings and Loan Association Act of 1997, as well as other BSP regulations.
"As a result of the revocation of its BSP license as an NSSLA, MTSLAI lost all its privileges to do business as an NSSLA under RA 8367," the order reads.
It said that monetary penalties shall be imposed against the loan agency pursuant to Section 37 of RA 7653, or the New Central Bank Act.
According to DepEd, since the MTSLAI lost its license to operate, the corresponding Automatic Payroll Deduction System (APDS) codes and sub-codes are automatically canceled.
But for those teaching professionals whose loans were granted before Nov. 25, 2022, the collection of deductions shall continue up until the "termination dates reflected in the pay slip and until fully paid."
The department of education said it has instructed the finance service and APDS task force to "ensure that no DepEd employee shall be allowed to apply for aid system membership and/or contributions or loans with MTSLAI."
