If you’ve been active on social media lately, you’ve probably seen the offers. They usually happen in the comments section or via a direct message: someone offering to turn your Home Credit product loan or HCQWARTA credit limit into cold, hard cash.

It sounds like a lifeline if you’re strapped for money. The pitch is seductive: They use your preapproved credit to buy a phone; they give you cash, sometimes even promising a premium; and they take the device. No fuss, right?

Wrong. Home Credit Philippines is sounding the alarm on these “Product Loan to Cash” schemes, and the stakes are much higher than just a ruined credit score. Because of recent legislation, participating in these schemes could actually send you to prison.

How the scam works

The scam targets the liquidity problem. Home Credit is famous for financing gadgets and appliances, but you can’t exactly pay your rent with a refrigerator. Scammers know this.

They approach customers with preapproved offers and act as a middleman. In the “Product Loan to Cash” scheme, they convince you to take out a loan for a high-end smartphone. They might even sweeten the deal by offering to pay the down payment for you or accompanying you to the store to, well, assist with the process. Once the papers are signed and the unit is handed over, they give you the cash and disappear with the device.

A similar tactic exists for HCQWARTA, where scammers promise to convert your credit limit into cash, assuring you they’ll handle the backend work. The problem? You are the one who signed the contract. When the scammer ghosts you — and they usually do — you are left holding the bag for the monthly payments. If you default, it’s your name that gets blacklisted, cutting you off from future financial services.

Now a criminal offense

Here is the part that most people miss: This isn’t just a violation of Home Credit’t Terms and Conditions anymore. It’s illegal.

Home Credit highlights that these activities fall under Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act, which was signed into law recently.

Under AFASA, allowing someone else to use your financial account or credit specifically to channel funds illicitly is considered money muling. The law doesn’t care if you were just trying to make a quick buck; if you are complicit in the scheme, you are liable.

The penalties are high. Violators can face six to eight years in prison and fines ranging from P100,000 (roughly $1,700) to P500,000 ($8,500).

“Every Home Credit loan reflects the hard work, hope, and dreams that our customers are building for their families. These schemes try to take advantage of that effort by turning trust into risk,” said HCPH chief marketing officer Sheila Paul.

The bottom line? If you need cash, stick to official bank loans or authorized cash loan offers within the Home Credit app. If a stranger on the internet offers to “convert” your credit for you, block them.

If you encounter these offers, you can report them directly to Home Credit via email at info@homecredit.ph or by calling +632 7753 5711 (Globe) or +632 8424 6611 (PLDT).

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