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| President Rodrigo Duterte said the “5-6” scheme has become a burden to Filipinos, especially for those who have no other resort |
MANILA, Philippines (Philippines News Agency) — Justice Secretary Vitaliano Aguirre II on Tuesday said that persons especially Indians engaged in the lending business more commonly known as “5-6” would be arrested even without a warrant of arrest.
In a press briefing, Aguirre said the interest in the “5-6” lending activity is legal after the repeal of the Usury Law and the removal of interest ceilings.
But the Department of Justice secretary said operating a lending business requires a permit and other requirements.
“Pinapahuli ni presidente mga bumbay (Indians) na nagpapa 5-6, kawawa [naman ang] mahihirap [sa] 20 percent na taas [ng interest]. They could be arrested without any warrant. When they're doing that they’re committing a crime,” he told reporters.
The government will push for the implementation of the nationwide micro lending program to address the “5-6” loaning business.
Earlier, President Rodrigo Duterte said the “5-6” scheme has become a burden to Filipinos, especially for those who have no other resort.
Many micro, small and medium enterprises usually resort to “5-6” lenders who are usually Indians.
The president said Filipinos had been experiencing such conditions but it had not been noticed for a long time.
SOURCE: PHILSTAR