House bill for financial literacy training for OFWs hurdles final reading

The House of Representatives has approved on the third and final reading a measure to provide overseas Filipino workers (OFWs) with free financial education.

House Bill 10914, or the “Free OFW Financial Education Act,” requires OFWs to undergo continuously updated financial education or literacy training seminars as part of their Pre-Departure Orientation Seminars (PDOS) and Post-Arrival Training Seminars (PATS).

“This landmark legislation ensures that our overseas Filipino workers and their families will receive free comprehensive financial education, equipping them with the knowledge and tools they need to secure their financial future,” a House leader said.

“Through mandatory financial literacy training integrated into pre-departure and post-arrival seminars, along with online resources for OFW families, we are creating a support system that will help OFWs maximize their hard-earned income and protect them from financial scams and pitfalls,” the House leader added.

Also, overseas Filipino seafarers have the option to attend the financial literacy seminars at their respective points-of-hire or within a reasonable time after their return to the country.

Families of OFWs will also be equipped with financial education through online seminars and other feasible means.

The proposed measure mandates the Department of Migrant Workers and other government agencies to educate OFWs and their families on the topics of consumer protection, protection on mortgaged or collateralized properties, avoidance of exorbitant interests on loans or debts, and credit information on micro- and small-scale enterprises to prospective lenders.

The intent is also to orient OFWs about obligations and contracts, credit transactions, interests, pledges, mortgages, guarantees, and knowledge of financial products like stocks, bonds, insurance and mutual funds.