THE Bangko Sentral ng Pilipinas (BSP) has cautioned the public against an increasingly prevalent auto loan “pasalo-benta” or assume balance scams.
In an advisory Wednesday, Sept. 29, 2021, it said perpetrators of the assume balance/pasalo scheme, also known as the pasalo-benta scheme, target vulnerable car buyers hoping to save money on their car purchase and sellers who need to transfer their liabilities.
Under this scheme, a syndicate member would buy a vehicle from a seller with an agreement to assume payments for the auto loan.
However, the syndicate member has no intention of paying the remaining amortizations and will sell/dispose of the vehicle to an end-buyer to gain profit using falsified documents, giving the end-buyer no rights over the vehicle. As a result, the original seller defaults on his/her auto loan and the car gets repossessed, leaving the end-buyer with nothing.
The BSP called on banks to prevent these crimes…