Consumer finance company Home Credit Philippines (HCPH) is urging customers to be cautious after identifying schemes that convert product loans and HCQWARTA credit limits into cash, putting borrowers at financial and legal risk.
“Every Home Credit loan reflects the hard work, hope, and dreams that our customers are building for their families,” said Sheila Paul, chief marketing officer of Home Credit Philippines. “These schemes try to take advantage of that effort by turning trust into risk. This is why we encourage customers to stay cautious. The company values the dreams behind every loan, and we remain committed to protecting and empowering our customers as they work toward the life they deserve.”
How the schemes work
The consumer financing company said scammers often approach customers with pre-approved offers and pretend to be trustworthy. The tactics include:
• Encouraging customers to take a Home Credit product loan, then offering to buy the device in cash, sometimes at a higher price.
• Offering to cover the down payment for customers who cannot afford it and accompanying them to stores to build trust.
• Promoting the conversion of a customer’s HCQWARTA credit limit into cash while claiming they will handle the process.
The risks
Once a scammer receives the device or cash, they disappear, leaving the borrower responsible for the full loan. This can lead to:
• Missed payments, defaulted accounts, and lower credit scores.
• Problems accessing future financing and possible blacklisting.
• Legal consequences under Republic Act No. 12010, or the Anti-Financial Account Scamming Act (AFASA), which penalizes money-muling activities with six to eight years in prison, fines from ₱100,000 to ₱500,000, or both.
How customers can stay safe
The company advised customers to protect themselves by following these steps:
• Avoid suspicious offers. Treat any attempt to turn a Home Credit loan or HCQWARTA credit limit into cash as a red flag.
• Be aware of the consequences. Borrowers remain legally responsible for loans under their names.
• Use official channels. Transactions should only be made through Home Credit partner stores, the Home Credit App, or approved payment channels.
• Report suspicious activity. Customers can report incidents through:
Email: info@homecredit.ph
Globe: (02) 7753 5711
PLDT: (02) 8424 6611