The Philippine’s Commission on Audit ordered the Government Service Insurance System to give back to its members some P1.3 billion worth of loan interests that it overcharged last year. System flaws in the agency’s Consolidated Salary Loan Plus Program caused delays in posting or crediting loan payments which in turn caused “excess interest.” COA pointed out, “On the month of renewal of loan, the member is charged twice the whole month interest – on old loan and renewal.” The GSIS says the borrowers will not be reimbursed what they overpaid, but the overpayment will be credited as “advance payment” to existing loans. For fully paid loans, members will receive the due amount as reimbursement.
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