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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after 3 years of not paying personal loan from the bank. will they have the right to foreclose any of my property? please advise
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Atty Fred,
I’d just like to ask my mom’s case about credit cards. My mom got sick last Feb 2009 diagnosed with nasopharyngeal cancer, she resigned from her job because of that and wasn’t able to pay for her credit cards, we also lack money because of her condition, we need to prioritize first the payments for her treatments. A demand a letter has been sent to her telling that the court summons and subpoeana will be released in a few days if she doesn’t pay her credit cards. My mom can’t sleep anymore because of this, Is it possible that the bank will get things even appliances from the card holder or be in prison if she will not be able to pay for her credit card? Will they give consideration to my mom because she’s still on her treatments?
Atty, I’ll be waiting for your response.
Thank you and God bless!
Tina,
Your mom is in such critical health condition that you have to focus on her health care. You are right in prioritizing payments for her treatments.
First things first. There is no imprisonment for debt. Walang nakukulong dahil sa pagkakautang. That is what the Philippine constitution says. Remember your constitution subject in college?
At this point in time, you are not talking to the bank anymore. You are already talking to an animal called “collector” from some cheap collection agency. Just ignore the phone calls and demand letters. They result to intimidation to force you to pay even if it will lead to your poverty or doing away with the necessary health care your mom urgently needs right now. That’s how stupid those idiot collectors can get. So, I repeat, ignore their phone calls and letters. Your mom will not be imprisoned for doing so.
Tell your mom that her outstanding credit card balance has all been paid. She does not know it, but, all credit card holders are paying insurance premium that will serve to cover the payment just in case of default. The moment your mom defaulted, the bank filed a claim with the insurance and got paid for your mom’s outstanding balance. The payment of insurance is the substitute for a collateral and reason why your mom pay’s a hefty 2% monthly in interest plus other charges. They still collect from you because that is how greedy banks are.
Don’t try to reason out with the idiot collector. They are notorious for their low IQ that they will surely fail to understand your situation. Those stupid collectors cannot even speak or write a descent simple sentence in English.
Moreover, your mom did not commit credit card fraud just because she defaulted on her payments. The collector or the collection agency cannot get any of your properties. Don’t believe their lies and intimidation. Do not issue any post dated checks to those nincompoops.
Here’s hoping that your mom gets well soon.
Warrior,
Thank you so much for the advice and God bless you!
dear warrior,
i am seeking your advise on this matter:
like may of the people who wrote to you, i am being hounded by credit card collectors.
at first i was able to make monthly payments, religiously, until my sister was hospitalized for two weeks & after that my mom was also hospitalized for more than a month, due to pneumonia & heart ailment.
at first, they call or text me thru my cellphone stating that i should pay the amount they have set otherwise they will be filing the case, i was trying to make arrangements then, to pay in the amount that i can afford at a given time, but was told by the one who was supposedly handling my case at that time, that the amount was not enough, that i should try to come up with the amount they have set. i do not wish to add anymore to my debts, hence i am not able to come up with the amount. and since i was told that they would still file the case if i don’t pay the amount set by them, i did not to deposit the amount i have, instead opted to use it to buy medicines for my mom & sister.
now, someone from “DOMINGO & MOLAER” law office came to our place & left a letter stating that they have made an occular inspection of “my place” & found that i am capable of paying my debt. the house & lot is not mine, and has been mortgaged. as of this time i do not have any real property of my own.
I am not running away from my debts, just trying to gain momentum, so i can settle whatever obligations i have.
your advise on this matter is very much appreciated.
Thank you & God Bless!
ikay,
The Philippine constitution guarrantees that there will be no imprisonment for credit card debt. You do not become a criminal just because you failed to pay your credit card bills.
The dumb collector is just trying to harass you, and if their threats succeed, you might be forced to pay. Huwag ka ng maki-usap sa mga bobong collector na iyon. If you have nothing to offer to them, ignore their calls, do not receive any letter from them and do not issue any post dated check to the collection agency.
Do not even think of borrowing from friends so you can pay that stupid collection agency. That collection agency cannot do anything if you cannot pay or refuse to talk to them. Takutan lang iyan. Pag natakot ka, talo ka. Pag lumaban ka, panalo ka.
same situation here, that molaer and domingo law office is really (^&%&^^$%&&^)!@#!!!!!
this website is very helpful…so i will take your advise atty.fred..honestly, i dont own the house where we live, my sis-in law owns everything..she has a golden heart allowing us to live with her family. so if the damn collector finally decide to come and visit where i live, they will shatter my reputation at home..hope they won’t do that…
Hey, I attempted to email you involving this post but cannot seem to contact you. Please email me when get a moment. Thank You.
Good day to all,
Please be informed that credit card debt is a civil case, not a criminal case. They cannot order a hold departure and put a stain in your NBI clearance unless you have a criminal case. No one can be put in jail just for not paying your credit card, as long as you are willing to pay any amount if a court hearing implies. Don’t let those collection agencies harrass you and ruin your integrity. Try to settle your debts within your limits and capacity to pay, if they won’t aggree with you then avoid their calls and disregard their demand letters. They can’t do anything to you, aside from that lawyers do not call. All of them are just call center agents handling a specific account to be collected. They only mean business, they can’t understand debtors. By the way, blacklisted individuals will need to wait seven years before you can apply a loan or credit card again. But please remember, stay out of the trap again. I hope this helps!
hi anvil, thank you for your post, it helps a lot.
please help naman po kasi may nagtext sa akin na mag file na daw sila ng criminal case against sa akin regarding sa di ko nababayarang credit card ko for almost a year na po at sabi may 2 police men na pupunta sa amin to serve yung warrant of arrest violation daw po of article 315 of the revised penal code (estafa) at pinapatawag ako sa law firm para daw ihold/withdraw yung case natatakot po ako kasi nakikitira lang me sa parents ko at di ko na nabayaran yung credit card dahil naoperahan ako. ano po ang gagawin ko paano ko po malalaman kung totoong may naifile na case sa akin.
thank you po…sana matulungan nyo po ako
isa,
Walang nakukulong dahil sa pagkaka-utang. Hindi ka kriminal dahil ikaw ay may utang sa credit card.
Tinatakot ka lang ng isang collector na nagtatrabho sa collection agency. Huwag mong tawagan ang tarantadong collector na iyon. Huwag kang tumanggap ng kahit na anong sulat mula sa kanila.
Kung totoo nga na pupunta sa bahay mo ang demonyong collector or pulis, huwag mo silang papasukin o kausapin. Maging matapang ka at palayasin mo.
Sabihin mo sa kasambahay mo at ka-opisina na kung tumawag ang inutil na collector ay huwag ng kausapin at ibaba na lang ang telepono.
Huwag ka din umutang sa mga kaibigan mo para lang may ipambayad ka sa bobong collector na iyon. Kalimutan mo na ang credit card. Talagang ganun ang buhay, kung wala kang pambayad, eh, di wala. Walang kulong ang utang sa credit card. Sa susunod, mag-ingat ka na lang sa mga pagastos mo.
good evening po, hihingi lang po sana ako ng payo, may na received po na letter dito sa bahay namin from ENZI Corporation, as usual po regarding po ito sa hindi ko pag bayad ng cc ko, last year po nakakabayad pa po ako til december (under collection agent po) tinawagan ko po sila nitong january para inform na di ko na po kaya mag bayad kasi nawalan na po ako ng work, sabi nila tawagan k na lang daw ang hsbc to inform them na yun nga po di na ko makakbayad….di ko po tinawagan last early this year po nabasa o po itong atty@work and nabasa ko po yung mga problem din regarding sa cc. ang nakalagay po dito sa letter “we may immediately, w/out notice and delay,ask the court to cause the COURT SHERIF to preliminary LEVY,ATTACH, or SEIZE your real/personla properties,as a legal consequence of theexpecteed favorable courts decision, which if becme final and executory, the said levy attachement, seizure and/or garnishment, may be permanent,not to mention the penalty
sir eto pa ang continuation….not to mention penalty of imprisonment from Six (6) to Twelve (12) years which may be imposed against you in the criminal aspect (R.A.8484-Fraud against creditor) without prejudice to violoatin of any other penal laws.”
hingi po sana ako ng advice kung ano po ang dapat ko gawin…masyado na po ako na stress kakaisip po, i always ignore po lhat ng calls nila sa mobile ko. please enlighten me po…..
maribeth,
Binobola ka lang at tinatakot ng tarantadong collector sa collection agency. Walang nakukulong sa utang. Hindi sakop ng RA 8484 ang pagkaka-utang sa credit card. Hindi ka criminal dahil lang ikaw ay may credit card debt.
Huwag kang mag-issue ng post-dated check. Huwag kang umutang sa kaibigan o kamag-anak para lang may ipambayad sa credit card. Palitan mo ang phone numbers mo.
Walang mangyayari sa pakikipag-usap sa collection agency.
sir gud day po,
ask lang po ako ng advuce kc since aug laat year pa po ako wlang trabaho kya d ko n mkyang bayaran yung eastwest credit card ko ang alm ko po almost 30k lang yung utang ko tapos ngaun nagulat po ako nkarecive ako ng demand lettr need ko dw po byaran ng 80k e yun nga 30 di ko n kya 80 p po kya tpos nkasulat po dun n pwede dw po isama yung husband ko sa case n ififile nla sa akin, tsaka makukulong po b ako pag d ko yun nabayaran sa knla? sana po matulungan nyo ako maraming salamt po.
Nica,
Sa Pilipinas, walang nakukulong dahil lang sa utang. Binobola ka lang at tinatakot ng tarantadong collector sa collection agency.
Magpalit ka ng phone number. Huwag mo silang kausapin. Kung sakaling puntahan ka sa bahay, huwag mo sila harapin.
Huwag kang mag-issue ng post dated check. Huwag kang umutang sa kaibigan o kamag-anak para lang impambayad sa walang kuwentang credit card.
gdpm po Atty.,ask lang po regarding dto sa credit card na verbal na npgusapan nmin last aug 2009 ng law firm “daw”..we agreed na 13,175 nlng yung bbyrn ko strting aug 2009 til Feb 2010..so 2k mthly po til jan 2010 n 1,175 nlng sa feb..idisregard ko dw yung statement of acct n pinapadala sa kin ng banko..no mthly interst na rin dw po yan sabi nya..i even asked abt kng pwede pdlhn ako ng letter na proof na ngbbyad..sabi nya certification daw after n mkbayad ako will be sent..ang ipingtataka ko po..after ilng mths ng pgtawg nya to remind me of my payment,,iba n nmn yung tmwg..all i did was to pay the amount til jan 29,2010..nagfully paid na ko pra kako d na ako twgn at kulitin..tpos all of a sudden me tmwg n nmn..ibang law firm at pinapabyarn sakin yung bal..accdgng sa law firm 15th plus..pero yung bank n tmtwag ay 12th plus..sabi ko i’ve already paid..nasan dw yung agreemnt or conforme,i have here my pyment slip..i told dem na d na ako mgbbyad..then they texted me telling me na “sa inyo na ho mismo nanggaling na ayaw nyo na magsettle sa banko, harapin niu na lng po yung legal team namin na ppnta sa bhy niu,sa inyo po ang pgkukulang,d sa bank.”..sabi ko nga ho matino akong tao kya ngbyad ako tpos yung taong kausap ko pla ay nag leave dw at yung 2nd na kumausap sakin ay nagresign nmn dw..wat shld i do w/ this harrasment?wat if me bglng dumating?me mga rights b cla na hal. sa warrant of arrest,,ano ang ggwin ko pg dmting yung time na yon .pls help me..tnx and God bless.
jing,
Ignore the harassment. Huwag ka na makipag usap sa collection agency. Hindi taga bangko ang kausap mo.
Niloko ka lang ng tarantandong collector. Dahil ikaw ay nakabayad na, kasama din nila sa collection agency ang tumawag sa iyo. Kunwari naman taga bangko siya. Maraming gimik ang collection agency,
Magpalit ka ng phone number, Itago mo ang mga resibo mo. Dapat kasi written ang agreement. Huwag ka mag-issue ng post dated check.
Hi Atty Fred,
i have same problems with others but i have debts with HSBC and Citibank and im just worried that by Immigrant Requirement to Canada my ruined all my plans going and leaving overseas.
the problem is i’m a EX-HSBC employee? and i have STAFF CARDS with 200,000 debt and loans with them. and im receiving calls and letters from law office and my mother told me that meron pa daw pong nag puntang tao sa bahay namin and looking for me and dala ang letter ng lawyer. i’m worried about my NBI clearance and other requirements.
can you help me with this? and on what to do? hindi po ba ako makakakuha ng NBI Clearance
would appreciate your immediate answer
Thank you.
sonet,
You are experiencing harassment from a good for nothing collection agency. You can still get an NBI clearance even if you have credit card debt.
You do not become a criminal because of credit card debt. Under the Philippine constitution, there is no imprisonment for debt.
Do not answer calls from the collection agency. Change your numbers. If you receive a letter from a “lawyer”, cross out your name on the front portion of the envelope and write in big letters, “RETURN TO SENDER”. Drop the letter in the post office mailbox.
Tell your mom not to entertain or talk to people she does not know. She has the right not to receive the supposed letter from the “lawyer”. When the collector goes again to your house, just close the door or you can hit him with a dos-por-dos for trespassing.
Those “lawyers” are actually fakes. Lawyers do not spend their time calling you or going to your house. Read one of their letters to you and you will see the very poor writing style and bad grammar. They are actually dumb.
Do not issue post-dated checks to the collection agency. Since you are a former HSBC employee, why not try to come up with a suitable payment scheme with them. If your attempts fail, so be it. LIfe is like that.
Hi Atty Fred,
REALLY? such a huge relief! i’m so worried about it. honestly i wanted to settle all my debts but for now i really dont have the means on doing so…
My mom is also worried baka daw kasi hindi ako makakuha ng NBI clearance. lahat po ng letters nasa bahay ng mom ko and hindi po nila nabalik. okay lang po ba yun?
…i just wanted to get my NBI Clearance for Canada i hope everything will me alright soon.
i tried to talk to my previous company but they want me to pay the full amount already!
sad to say i really cant provide that amount of money. Hay atty. i just want to have a peaceful mind. i know nasa blacklist na ako. makakaalis pa po ba ako? and get all the requirements i need?
Super thank you Atty. Fred
hi there atty. someone is accusing me of fraud of withdrawing a cash advance in his cc. they said it was caught in a cctv, but i’ve been in the atm lots of times. because i work in the building. now, the company filed a case against me. they showed the video with the date and time (but i think it can be changed) they don’t have proof that i use other peoples cc to withdraw money because it can’t be seen in the vid. they only say there’s a paper trail on that time that it was me. is that a strong evidence?! i am innocent!
i would also like to ask how long is the punishment for this if found guilty?
is this case probation-able?
ty
are you on vacation atty?