30 August 2019 LONDON—The Philippine Embassy warns everyone against the use of the Philippine passport as a collateral to guarantee the payment of loans or other obligations as this constitutes a violation of the Philippine Passport Act.

The reminder was issued following various cases involving individuals who ‘lost’ their passports surrendering it to a creditor or establishment as a guarantee for a loan or obligation.

According to the Embassy, applications made by individuals who lost their passports this way will be suspended. Applicants will be given no more than 30 days to exert all efforts to recover the passport from the creditor or any person illegally holding on to the passport. If after 30 days the applicant has failed to recover his / her passport, he or she must execute a Sworn Statement regarding the circumstance surrounding the use of the passport as a collateral. He or she must also attach an affidavit stating that all efforts were exerted to recover the passport.

During the first instance of the applicant using his or her passport as a collateral, the applicant shall be issued a passport with a five (5) year validity. However, his or her name shall be included in the Department of Foreign Affairs Watchlist for monitoring.

For the second offense, the application shall be denied pursuant to Sections 8 and 19 (d) of the Philippine Passport Act. In addition to this, the case will also be endorsed to the National Bureau of Investigation.

Penalties on the Creditor

Creditors and establishments wilfully holding on to Philippine passports as a collateral to financial obligations will likewise face serious charges. The creditor shall be included in the Department of Foreign Affairs Watchlist or, in the case of a foreign citizen creditor, he or she shall be included in the Department of Foreign Affairs Visa Lookout List and the Bureau of Immigration Blacklist.

Creditors or establishments who fail to return the passport to the Embassy within 30 days after receiving the demand letter to return the passport will be included in the Department of Foreign Affairs Lookout List and will be recommended for inclusion in the Bureau of Immigration Blacklist. END