1. Borrower shall accomplish an Application for Penalty Condonation Form.
2. Borrower shall be issued an Acknowledgement Receipt together with Statement of Account (SA) and Payment Return Form (ML-1) stamped "With Application for Condonation of Penalty" on both documents. The Acknowledgement Receipt shall serve as proof of participation in the condonation program.
3. Copy of proof of payments (SBR & ML-1) shall be submitted to the nearest SSS branch for immediate posting.
NOTE:
Interested borrowers need to accomplish the Application Form for Penalty Condonation of Delinquent Member Loan. In addition, the borrower must remember to submit copies of proof of payments (SBR & ML-1) to the nearest SSS Branch to facilitate posting.
You must fill-up the form using black ink. Please see page 2 of the form for other important reminders.
For more information, please refer to SSS Circular No. 21-P.
TO: ALL SSS MEMBERS
SUBJECT: CONDONATION OF PENALTIES ON DELINQUENT SHORT-TERM MEMBER LOANS (SALARY, CALAMITY, EMERGENCY, EDUCATIONAL, STUDY NOW PAY LATER PLAN, VOCATIONAL/TECHNICAL STUDENT AND Y2K LOANS)
Pursuant to Social Security Commission (SSC) Resolution No. 451 dated 21 July 2004, approved by the President of the Philippines on 05 August 2004, hereunder are the guidelines for the condonation of penalties on delinquent short-term loans:
I. WHO ARE QUALIFIED FOR PENALTY CONDONATION
Borrowers who are delinquent in the payment of their monthly loan
amortizations as of 30 September 2004 (including those with final
claims whose contingency dates fall within the availment period).
II. WHAT ARE THE TERMS AND CONDITIONS
1. Availment period is from 01 October 2004 to 30 September 2005.
2. Payment of arrears (outstanding principal and interest) may be in partial or in full during the availment period.
3. The amount of penalties to be condoned is proportionate to the amount of arrears paid. (For example, if all arrears are paid, then all corresponding penalties are condoned. If only 50% of arrears are paid, then only 50% of penalties are condoned). The balance shall continue to accumulate penalties.
4. If the remaining balance is subsequently paid during the availment period, the accumulated penalties are condoned.
5. Borrowers shall be allowed to apply for short-term loans only after two (2) years from the date of the last payment made within the condonation period.
6. A borrower who pays at least P500 shall be eligible to participate in the Delinquency Assistance Program (DAP).
Mechanics of the Program:
a. Four hundred (400) delinquency assistances at P5,000 each shall be raffled off to borrowers who avail of the condonation program.
b. The borrower is entitled to one (1) computer-generated raffle entry for every P500 payment.
c. The borrower is entitled to only two (2) winning entries.
d. These shall be one hundred (100) winning entries for each quarter ending 31 December 2004, 31 March 2005, 30 June 2005 and 30 September 2005.
e. Winning entries shall not be included in the succeeding draws.
f. The prize shall be applied to the borrower's loan balance, if any; the excess shall be paid to the borrower.
g. SSS employees may avail of the condonation program but shall be disqualified to participate in the quarterly draws.
III. HOW TO AVAIL OF THE CONDONATION PROGRAM
1. Borrower shall accomplish an Application for Penalty Condonation Form.
2. Borrower shall be issued an Acknowledgement Receipt together with Statement of Account (SA) and Payment Return Form (ML-1) stamped "With Application for Condonation of Penalty" on both documents. The Acknowledgement Receipt shall serve as proof of participation in the condonation program.
3. Copy of proof of payments (SBR & ML-1) shall be submitted to the nearest SSS branch for immediate posting.
This supercedes Circular No. 20-P.
Please be guided accordingly.
(sgd.)
CORAZON S. DE LA PAZ
President and Chief Executive Officer
29 September 2004