Posted on October 30, 2006 in Money & Finance
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?
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A friend of mine hasn’t been able to pay for her credit card recently because of her failing business although she has been a client of the bank for almost 10 years and has never missed a payment until recently. Then she got a text message from a certain branch clerk of the Makati RTC telling her that her court summons and subpoeana will be released in a few days if she doesn’t pay a certain amount. Is that for real or was it just a ploy to make her pay? Has anyone ever gone to jail because of RA 8484? I know there are a lot of people who intentionally max out their credit cards without any intention to pay for their purchases and never get summoned. Or people who steal unused credit cards (I’m sure these people work for the bank themselves because how else will they have access to the credit cards?!) and use them.
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Diana Prince, a branch cleck doesn’t text parties regarding summons – it is usually served by the process server. As to those who commit fraud, it’s really unfair to generalize that “these people work for the bank themselves.” I’ve handled credit card cases for a bank and I can tell you outsiders could skim credit card info.
My mother was victimized by credit card fraud. A certain person called our house asking my mom to confirm her identification. He asked all the right and usual questions that citibank officers usually ask before any transactions. Of course my mom acknowledged the call since citibank officers were regularly calling us for new offers or reminders. She was then told that her credit card was being upgraded to a platinum one. She was asked if she had ever transacted a cash advance or what her PIN number was, luckily, my mom was quite forgetful and replied that she didn’t know her PIN and that she had never done a cash advance before since she’s not very computer savvy. The man told her that it was ok, that they were going to fax her a letter that she had to sign and that they were sending over a delivery man who will collect the faxed letter and exchange it for the true copy. She was also instructed that since she was being given a anew credit card, she should submit her 2 credit cards but not to worry, because she must cut the credit card into quarters so as to guard against it being used again. Of course my mom was reassured that it was all real because she was warned of the possibility of fraud by the kindly gentleman. sure enough, a faxed letter came, the man even called my mother’s cellphone number to inform her that our landline was busy and to make sure that it was free so that the fax may push through. She signed the letter and after 1 hour, a man came to our house to collect it and the cut credit cards in exchange for the true letter. One hour later, we received a call from a citibank officer asking my mom if she had been trying to do a cash advance. My mom said that no, she wasn’t and that in fact, citibank has just called to say that she was being upgraded. That was when the officer told us she was a victim of credit card fraud. she was told that the perpetuators have been attempting to withdraw cash repeatedly. We were advised to write a report and fax it to ther office. My mom cancelled all her cards. The next day, we called their hotline to check if any money was taken. The officer said that there wasn’t any transactions registered.
the next day, my mom was still nervous, so we called again, we were then told that several withdrawals worth 10,000 each happened, for both cards amounting to 130,000 each card. My mom is very worried about this. I’m asking your opinion regarding our liability. I would greatly appreaciate your reply. You can also email me your reply. thanks very much
Peachy,
Under the law, in case of loss of an access device, the holder must notify the issuer of the access device of the details and circumstances of such loss upon knowledge of the loss. Full compliance with such procedure would absolve the access device holder of any financial liability from fraudulent use of the access device from the time the loss or theft is reported to the issuer. You could read more here:
http://pinoy-business.com/content/view/155/59/
Hope things worked our well. God bless.
Atty, Fred,
I was not able to pay for my credit card for almost a year already. I have resigned from my previous job since I was diagnosed to have a PTB that time. I went to our province for a medical rest as advised by my doctor. After 6 months of recovery, I decided to look for a job since I also have a child to feed. My sister told me that my credit card bills has ballooned from 15K to almost 106 thousand. I was shocked to realized that my debt was already amounted to that. Prior to this, I already paid the amount of 15K before I left manila to take my medical rest since their collecting agency has kept on persisting me to pay for my debt. We had a verbal arrangement about that and initially I paid for 10K and the rst was based on their monthly scheme of 2300. I even told them that I am going to resign because of my sickness. As of now, I am going to get an NBI clearance but I am worried that this credit card incident may affect my records at NBI.I am willing to pay my debt at hsbc, but I am worried if this may cause me to be terminated if there will be findings on my NBI clearance. I would greatly aprreciate if you will reply on this matter. Thank you so much.
In relevance to Diana Prince statement posted on October 6th, 2007 at 10:34 am. What will actually happen to those people who can’t settle their credit card? Are their NBI record affected? Do banks has the right to order departure hold from the immigration? Which means, if we want to travel abroad to work, can we still leave the country? Hope you can cleary answer all our querries as I think Diana’s questions we’re all not clarified by your responsed. Thank you very much.
Hot debate. What do you think?
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Hi Atty Fred,
My Dad is now living abroad. Before leaving he used his credit card on January(issued under his name) and didn’t/forgot to tell us about it. We received no bill or statement from the credit card companies. We received no communication whatsoever from them, although they have my landline and celphone number on their file. 6 or 7 months later (July or August), I received a call from them saying that my Dad has not yet paid. After talking with them, they admitted (although verbally only) that their courier could not find our house that’s why we were not receiving the bill. However, 2 years ago we have already previously received some bills from them, so I don’t understand why this time they could not find our house. Anyway, because of this admitted error, they agreed to reverse the interest charged after the 4th month of the transaction (April).
However, until now they have not reversed the charges and are still calling to collect. I have already paid the principal amount including interest charges up to April.
By their not sending the bill did they violate RA 8484? And if they reneged on their oral promise to reverse the charges what can I do?
i just want to ask if not paying ur card can affect ur nbi and also i taled to them before if i could pay like 500 per month they refused and ow they are saying that i am not communicating with them, and also can we file a complaint against those agents whose been calling me and whoever answers the phone because they aare saying harsh words to me nad the other people in our household
Hi Atty Fred,
I would like to ask for an advise. I was in a shopping mall yesterday when they refused my credit card, they said that I was beyond my credit limit. I was shocked because I don’t have any debt at that time. So I immediately called my credit card company and I found out that there are 2 transcations happened and I was unaware of that. Both amounting 36K each! I told the credit card company that I don’t know anything about it and they said that I was to send a letter of dispute for them to investigate. I ask what my options are, they only said that i have to pay for those transactions if ever they did not prove it was fraud. I think its not reasonble for me to pay since I don’t know about it.
Hello Atty Fred,
Im a credit card holder, I was not able to pay for my bills for about 8 months due to family and health problem. I have not bee using my credit card for almost a year now. A demand a letter has been sent to me. I tried to find ways to pay my bill but i just couldnt raise 5000 with a week. Now, a secretary of the certain Law office called me up and told me not to work cause someone will be coming over to the house to look and see if what things will be sequestered by them and she that someone will also be coming to the office to talk to the management regarding the issue.
What will I do with my situation? I really financially broke but I will try to see to it that I will pay my bill with minimal amount that I can afford. My other concern and question atty is, do they have the right to just barge in into the company where i work and talk to the management?
Thank you so much and god bless
Me nakukulong po ba sa utang sa card? khit po willing k naman magbayad? pano po 45k lang utang mo tpos sabi nila is 130k na, possible po b un? lalo po kasi kming di makakabayad kung ganon ang gagawin nila, tulong naman po. tnx
Hot debate. What do you think?
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is there really an existing team well equipt to combat this kind of scam?.. how come they haven’t catch any big fish until now?.
is there any law that states or defines the creditors’ limitation in terms of collections? when is it considered HARASSMENT?
has there really been a case when one was locked up because of credit card? ra 8484. i lost my job, and i have not been able to pay for my card for about 5 months. i have been receiving text messages regarding them filing for a case against me, or that they have sent a person for ocular inspection. thanks. hoping for your immediate response.
Hi Sir,
I would like to seek your assistance in how to handle a fraud transaction made from my credit card account through Citibank (mastercard).
I have submitted the dispute form and letter to Citibank already but they are claiming that the transactions made was valid since my card was used. I don’t have any other option on how to go about this concern.
Your kind consideration on this matter is highly appreciated.
Thank you.
I am in the same situation.Please advise. Thanks!