Credit card fraud

Credit card fraud is present in our country, although its prevalence is subject to debate. In the cases I’ve handled, a SINGLE fraudulent transaction amounted to millions of pesos. A newly-created task force addresses the dilemma of whether a credit card company, which oftentimes absorbs the loss, should spend more money in prosecuting a fraudulent credit card transaction without the active participation of government agencies.

he PIA reports that the President issued Executive Order No. 573, creating an Anti-Fraud Task Force composed of the National Bureau of Investigation (NBI) and the Philippine National Police (PNP) to strengthen Republic Act 8484, or the “Access Device Regulation Act of 1998?.

The occurrence of credit card fraud is increasing and acquiring banks incur huge losses and suffer stunted credit card sales, ultimately threatening the survival of the credit card industry, including the negative repercussions in the domestic economy, the President said in the order that she signed Wednesday.

She said credit card fraud was a “form of economic sabotage as it creates a bad image for the country in the global market” at a time when the government was moving to boost tourism.

The Credit Card Association of the Philippines (CCAP) earlier appealed to Malacanang to give more teeth to its laws against fraudsters using illegally obtained information from credit cards, obtained mostly through store or restaurant personnel.

Although credit card fraud is not as widespread in the Philippines as in other countries – constituting less than one percent of credit card transactions here – the CCAP said there was a need for safeguards because of the inadequate security features of most credit cards in the country.

Of course, credit card fraud is present in our country. In the cases I’ve handled, a SINGLE fraudulent transaction amounted to millions of pesos. This task force addresses the dilemma whether a credit card company, which oftentimes absorbs the loss, should spend more money in prosecuting alone – without the active participation of government agencies – a frudulent credit card transaction.

Under Republic Act No. 8484 (the “Access Device Regulation Act of 1998″), in case of loss of an access device (a credit card, for instance), the credit card holder must notify the issuer or the credit card company of the details and circumstances of such loss upon knowledge of the loss. Full compliance with this procedure would absolve the credit card holder of any financial liability from fraudulent use of the credit card from the time the loss or theft is reported to the issuer.

See also: Credit cards – How to Stay Ahead of Runaway Credit Card Debt; Credit cards and unfair collection practices; What would you do as a credit card company?

179 comments

    1. Ann,

      Credit card debt is not a criminal offense. Your unpaid credit card will not result to a HIT when you apply for NBI clearance.

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  1. Sir , may naiwan din pong utang sa personal loan ang husband ko sa uae noon pang 2008. Kailangan po niya kumuha ngayon ng police clearance sa UAE para sa Permanent Residency Visa niya sa Australia. Kung sakali po ba na may makita case na naka file laban sa kaniya sa UAE ano po kaya pwedeng mangyari? Kasama po kasi sa application yung address at phone number niya pwede bang ipasa ito sa Australian authority. Maari ba siyang damputin ng australian police para sa case niya sa UAE.
    Sana po mabigyan po nyo ito ng kasagutan.
    Anna

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  3. 94. Gen, Isa lang ang dapat mong gawin. Tawagan mo lahat ang mga banko na inutangan mo. makipag coordinate ka sa kanila.

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  6. hoy! JEFF VILLANUEVA! wag ka ngang pakialamero sa opinyon ng iba! manahimik ka na lang!!! bkit apektado ka ba at isa ka yata sa mga unggoy na collector ng pautang at nasasaktan ka sa mga sinasabi mo! wahaha! wag ka makialam jan!!!

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  7. hi po,

    i left abu dhabi last 2007 with a personal loan almost 30t dirhams left coz i paid already almost one year. i ask my old bank before i left if pwede ba akong umalis. they did not reply but i told them i have a gratuity which is more that 25t dirhams. after 3 years plus this bilkish company keep on calling me and sending me emails that i will be in jail if i will not pay the amount which is double 63t dirhams. paki advice mo naman ako.thanks

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  8. Hello po. I just want to know po kung magastos hu bah yung pagsasampa ng kaso for credit card fraud cases. May gumamit po kasi ng credit card ko, and i have all the evidences na against the person. gusto ko po mgsampa ng kaso but iniisip ko po kung magastos bah yung process ng pagsasampa excluding yung bayad sa lawyer po. Thanks!

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  9. Yung father ko po, nakatanggap ng unpaid bill from a certain bank, amounting to Php250,000. Ang kaso, wala naman’g inaaplayan na credit card ang father ko. Nung pinuntahan nya yung bangko, sabi sa kanya, siya ang nakasaad na principal sa credit card. At extension yung dati nyang ka live-in. Itinanong ng father ko kung kelan ginawa yung application. Nung sinabi ng bangko kung kelan, sinabi ng father ko na nasa abroad siya nung specific date na yun. Ipinakita pa nya sa bangko yung passport nya clarifying the date. At sinabi nyang wala siyang pinipirmahan na application form. Pero, iginigiit pa rin ng bangko na sya daw ang principal.
    Ngayon, ang father ko ang sinisingil ng bangko, at umaabot na sa Php 453,000 ang bill. Alam namin’g yung ka live-in nya ang nameke ng application ng credit card, at sila ang gumamit nito. Ni wala ring natatanggap na monthly bill nuong una pa ang father ko. Nakipaghiwalay siya nung 2010 sa ka live-in nya. Natanggap nya yung latest bill(Php 250,000+) nung 2011.

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  10. Sir lito,

    Help naman po. Magkaiba po ba ang credit card loan sa personal loan? Meron po kasi ako unpaid sa ps bank flexi loan at nagsisimula na po si mang harass considering na delayed lang po payments ko ng 2 months. Tumawag na po ang collection agency at nag insist po na mag bayad ng tru terms pero ang laki po ng first payment at halos ma doble po loan ko.

    Please help po.thank u

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  11. May di po akong nabayarang card sa psbank money card po. Medyo matagal na po iyon 6 yrs na po ata. Pero patuloy pa rin sila sa paniningil. pagtumatawag sila at may sulat na dumarating ang sabi ko wala ng nakatirang ganung panganlan dito. Ok lang po ba iyo? maraming salamat po.

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  12. Sir,

    Tanong ko lang po, may utang po ako sa eastwest credit cARD NA ALMOST 50k, actually 25000 lang po iyan lumaki lang dahil kulang ang naihuhulog sa minimum payment, until 3 months na po akong di nakakhulog, ngayon po grabe na ang pangungulit ng collection agency pati boss ko gusto tawagan, ang nangyari po kasi dito yung friend ko nanghiram sa akin ng pera na 25000 dahil may sakit ang tatay nya, sa awa ko sa card ko siya iniutang pero usapan namin siya magbabayad ng bill at ng tubo nito kada buwan, ang naging problema naman po d na nakabayad isang taon na hangang naging 54000 na ang utang ko sa credit card. ngayon po wala ako mapiga sa friend ko kaya ako naman ang kinukulit ng collectors agency, ang pagbabayad po ba ng below minimum ay pwede kong gawin para lang ma prove ko sa kanila na di ako natakbo sa utang ko, di ko po kasi kayang maghulog sa kanila ng almost 3000 a month, para lang po tigilan na ako ng katatawag sa akin ay huhulougan ko na lang po kahit 500 monthly yan lang po kasi kaya ko, kakasuhan pa din po ba nila ako, or kukulitin pa din kahit 500 lang binabayad ko? para lang po kasi patunayan ko sa kanila na hindi ko tinatalikuran ang obligasyon ko.

    salamat po, hope to receive an answwer para po matahimik na ako.

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