A pattern in SSS punishing members for its mistakes

SSS punishing members for its mistakes

            An isolated bureaucratic lapse is excusable. But a pattern of wrongs is alarming.

            Last Apr. 27 I featured the problem of Social Security System member Leo Querubin. SSS had sent through his present employer a collection notice. He supposedly owed SSS P60,619.15. It was for a salary loan balance of P11,250.73 from as far back as May 2001, plus interest of P12,487.50 and penalty of P36,880.92.

            Leo had a different employer in Makati then, which he left in 2002. He moved to a new employer a few blocks away, before joining his present one. The previous company has since closed.

            Leo no longer recalled the loan he supposedly took out 19 years ago, much less the details. He politely inquired with SSS:

            (1) In case a member with outstanding loan resigns, is it not SSS policy to require the employer to deduct the entire loan balance from the last salary and remit at once to SSS?

            (2) Assuming the old company did not do so, which means it was in breach of SSS rules, should not SSS have collected immediately through the subsequent employers, instead of 19 years later?

            Just pay up, SSS replied. Luzon was under strict pandemic lockdown that April, and government had a moratorium on all debt payments. In that column, “SSS Penalizing Member for Its and Employer’s Fault,” I alerted other members not to fall for scams.

SSS punishing members for its mistakes

            Having read that, SSS member Howard Felicidario wrote this week: “I am aghast! I have an almost identical issue.” His letter to SSS is self-explanatory, excerpted below:

            “I am writing to complain about the unconscionable interest and penalty from a forgotten ten-year old loan which you may have overlooked due to technical inefficiency or bureaucratic neglect.

            “On Nov. 28, 2020, I was notified by Technology Elite, Inc., the company I currently work for in Clark Freeport, Pampanga, that I have a balance of P26,233.90 from a salary loan that I allegedly availed back in March 2010. On checking my SSS account online, I found out that there was a remaining unpaid balance of P10,000 that for 10 years, without my knowledge, has been accruing interests and penalties.  Now, the said interests and penalties have ballooned to P26,375.67 and growing.

            “My loan date supposedly was March 19, 2010, when I was still with Cutting Edge Productions, Inc., now closed.

            “For all I know, this has already been repaid since the balance of P10,000 should have been deducted from my final pay from Cutting Edge Productions, as standard operating procedure between SSS and employers.

            “I presumed regularity that SSS was doing its function so this loan should already have been paid in full, and that there is no more balance because for 10 years SSS did not bill any of my other previous employers nor received any information of my outstanding loan from any of them or you.

            “I do not renege on my obligations and I see to it that my debts are always paid in full and on time. This unconscionable accrued interest on loan left unchecked due to your inefficiency, neglect or incompetence has given me so much headache, disappointment, and indignation.

            “The SSS Mandate says: ‘To manage a sound and viable social security system which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden.’

            “Leaving loans unchecked without notifying your members so that the interest and penalties accrue for years, even decades, without the members being aware and you gain double, triple, or quadruple the original loan amount is hardly promoting social justice. You should be notifying at least annually. Had I been notified before the interest ballooned in the past 10 years, I could have paid it before it reached this usurious level. There could be millions of us with similar situations.

            “I transferred to Riot Inc., a short walk from Cutting Edge Productions, both in Makati; my salary there had SSS deductions. Why did your system not detect that the balance of my loan from 2010 was left unpaid?

            “My current employer is prodding me to ‘settle’ the loan immediately. According to them, SSS will tag our company as delinquent due to my outstanding SSS loan. This will affect the eligibility of our other employees to get loans from SSS as well as the permits and operations of our company. Why penalize the whole organization for the issue of a member that the organization has nothing to do with? Have you taken a page from the mafia rulebook?”

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SSS punishing members for its mistakes