The Department of Education (DepEd) has revoked the accreditation of the Manila Teachers' Savings and Loan Association, Inc. (MTSLAI) under its Automatic Payroll Deduction System (APDS) program. DepEd issued the order pursuant to its DO 020, s. 2021, which requires DepEd to regulate the use of its APDS program to ensure the orderly implementation of salary deductions and the protection and promotion of the welfare of all teachers and employees.
MTSLAI is one of the non-stock savings and loan associations (NSSLAs) that have been granted the privilege of accreditation under the DepEd APDS program for the period of August 6, 2021, until December 31, 2025. However, the Bangko Sentral ng Pilipinas (BSP) informed DepEd that it had revoked the license to operate of MTSLAI under the Revised Non-Stock Saving and Loan Association Act of 1997 for willful violation of the law and other corresponding BSP regulations. BSP also imposed monetary penalties on MTSLAI.
Under DO 020, s. 2021 and the Terms and Conditions of the APDS Accreditation, accreditation shall be revoked upon commission of grounds classified as serious. One of the serious grounds is when the Certificate of Authority (license to operate) of the entity is canceled or terminated by the BSP.
The BSP's revocation of MTSLAI's license to operate as an NSSLA, which attained finality pursuant to MB Resolution No. 1676, s.2022, and its enforcement thereof, all produced a binding effect upon the DepEd, necessarily resulting in the revocation of MTSLAI's accreditation, as it renders the latter ineligible to participate in the APDS.
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. MTSLAI is not allowed to grant new business, e.g., mutual aid system membership and new loans beginning November 25,2022. For mutual aid system membership dues and/or contributions, collection of deductions already incorporated in the APDS as of the date of revocation shall continue for the next three months or until requested for stoppage by the concerned employees, whichever comes earlier. Thereafter, the corresponding APDS Codes and Sub-Codes, if any, are automatically canceled.
For loans granted before November 25, 2022, the collection of deductions for these existing loans in the APDS for MTSLAI or any salary deduction on behalf of MTSLAI shall continue up to the termination dates reflected in the pay slip and until fully paid. Thereafter, the corresponding APDS Codes and Sub Codes, if any, are automatically canceled.
The Finance Service and the APDS Task Force are directed to ensure that no DepEd employee shall be allowed to apply for mutual aid system membership and/or contributions or loan with MTSLAI beginning November 25, 2022. They are also directed to issue an advisory to all teaching and non-teaching personnel of DepEd who availed of the APDS program, informing them of the BSP's enforcement of its adjudication to revoke the Certificate of Authority of MTSLAI and its attending consequences in relation to the existing loan contracts and the terms and conditions in connection with its payment.
DepEd clarified that pre-existing contractual obligations to pay a sum of money existing between the borrower/DepEd personnel and MTSLAI, despite the supervening events, are separate matters, with DepEd not being a party to the loans or contracts between MTSLAI and its DepEd employee borrowers. Thus, MTSLAI may still continue to enforce its loans or contracts with and collect directly from DepEd employee borrowers/debtors, outside of the APDS Program.