NPM No. 007-2019

Requesting Entity: Government Service Insurance System (GSIS)

Issues Concern: Selection of Third Party Collection Agencies



1. Is Republic Act (RA) No. 9184 applicable in the selection of third-party collection agencies for outstanding loan balances of inactive members of the GSIS?

The selection of collection agencies which adopts the no cure, no payment scheme falls within the coverage of RA No. 9184 and its Implementing Rules and Regulations (IRR) if public funds will be spent for this purpose, as determined by the Procuring Entity. Moreover, the same is not one of the activities excluded from the scope and application of the law and its IRR.

2. Would the accreditation of collection agencies be proper if RA No. 9184 is found to be inapplicable?

As to the determination on the propriety of the accreditation of collection agencies should the subject undertaking not require the use of public funds and is therefore outside of the ambit of RA No. 9184, the same equally rests upon the wisdom of the implementing agency.