There are a number of good reasons in favor of having and using a credit card. It’s like owning a gun – it’s really a matter of how you use it. I know, not because I own a gun, but because I’ve handled an international credit card institution for years.
Still, we all know the possible adverse results in the unchecked use of “plastics” or credit cards, such as this one: “THERE’S a credit-card horror story that’s become some sort of an urban legend: A television personality, after losing his job in a top network, resorts to using his plastic money. By the time he finds employment in the rival network, he has wracked up P58,000 in credit card bills. But he figures he’s not yet ready to pay in full, so he pays just the minimum amount due. Yet after five years, he is shocked to realize that his credit card debt had ballooned more than 10 times to P700,000.”
Perhaps you’ve heard, or, most probably, experienced certain “innovative” strategies used by credit card companies and their collection agencies in “persuading” you to pay (they are, of course, entitled to payment). With the rising complaints against these strategies, the Bangko Sentral ng Pilipinas (BSP) issued a set of rules and regulations governing the credit card operations of banks and affiliate credit card companies. Without limiting the general application of the foregoing, the following are considered unfair collection practices
a) the use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person.
b) the use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws.
c) disclosure of the names of credit cardholders who allegedly refuse to pay debts, with certain exceptions.
d) threat to take any action that cannot legally be taken.
e) communicating or threat to communicate to any person credit information which is known to be false, including failure to communicate that a debt is being disputed.
f) any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder.
g) making contact at unreasonable/inconvenient times or hours which shall be defined as contact before 6:00 a.m. or after 10:00 p.m., unless the account is past due for more than sixty (60) days or the cardholder has given express permission or said times are the only reasonable or convenient opportunities for contact.
As a rule, banks, subsidiary/affiliate credit card companies, collection agencies, counsels and other agents may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement. However, in the exercise of their rights and performance of duties, they must observe good faith and reasonable conduct and refrain from engaging in unscrupulous or untoward acts, including those enumerated above.
I was reminded of this topic when, just last week, I handled my first case representing a credit card holder. This is something new to me because, as noted above, I was at the other side of the fence, so to speak. Maybe I should discuss more relevant topics on credit cards. (Read the full text of BSP Circular 454, series of 2004. See also: Credit cards – How to Stay Ahead of Runaway Credit Card Debt.)
Related Posts:- Cash price vs. credit card price
- Credit card fraud
- What would you do as a Credit Card Company?
- Bouncing Checks (BP 22): An Extended Discussion
Tinkering with internet tools comes with the bonus of better understanding how existing laws apply to the third wave - that of technology, particularly the internet. This is also a great medium to disseminate and discuss ideas across borders, time, color or creed. 
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Hi po,
May tanung po ako about sa approval ng mga POSTPAID PLAN ng mga cellphone network. Apektado po ba ang approval nito kung sakaling may default ako sa CC? kasi may matagal na ko utang sa CC mga 7 months na po hindi nababayaran, nagrerefelect ba to kahit sa pag approve ng post paid? nag Credit Investigation ba ang mga network companies? kasi hindi naaprove ung inapplayan ko na plan eh kumpleto nman ang pinasa ko, at para plan P350 lang per month di naaprove! tanung lang po…
salamat. OG alarcon
@og alarcon
yes, nag credit investigation ang mga network companies..kailangan mo masettle mo na ang CC tapos hingi ka ng certificate of full payment, kasi 1 year pa bago ma erase yan pangalan mo sa delinquent…may company kasi na cya yong nagkokolek ng mga delinquent payors…tapos itong mga network or credit card companies na ‘to d’on na sa kanila mag inquire for fee
Hi! I have an active credit card account with Eastwest Bank, my outstanding balance is amounting to 58,000, I’m afraid that for the next months I won’t be able more than the minimum payment requirement so I called the bank to ask if they could freeze the account for some time so that the interest rate will not accumulate or if they could totally close the account because I won’t be using it anyway , they told me, they can’t do that however I could apply to restructuring program. I am really burdened by the interest rate and I am having a hard time paying, my credit just goes up and up and I am afraid I won’t be able to control it so I would like to negotiate as early as possible to avoid much problem. When I applied, I submitted many requirements then I was told it was declined. Since I am very much willing to settle my total credit due, I once again called the bank, they discussed that my total credit due amounts to 79,709.45 including pre termination fees of my balance transfers, I reapplied for the Restructuring Program. Finally, someone from their collections department called and told me that still my application is subjected for approval but I needed to sign contracts and submit more requirements the next day, she gave me a deadline for submission or else my request will be declined again. So when I went through the documents, the total credit balance that I have will already amount to 122,752.55 should I sign the 36-months term of payment, plus the fact that I will be included in the list that will affect my credit standing in the future . I thought the restructure program will “help” me but in a way, it will just burry me deeper in agony.
I would like to know, is this really the restructuring program? What can I do right now? Who to ask for help? Thank you very much; I do hope you’ll enlighten me with this situation.
@ kay
Its okay to settle your credit liability if you have the means to pay if off, but if your money is enough for you and your family’s basic needs then don’t. Now if you have the money to pay off your principal liability offer the bank in a one time payment. The restructuring program of the bank has too much interest, charges and other fees; as you can see your liability is just 58,000 then went on to 122,000+. Restructuring program should mean what is meant to be, to give lighter terms of payment but it seems its the other way around. Be wise enough in making settlements with the bank especially with collection agents.
check this out – BSP Memorandum No. M-2011-040 on Effective Interest Rate Calculation Models for all Types of Loans. It provides a ceiling for interest rates. It took effect last January 2012. I also availed of EWB restructuring program voluntarily cause it’s the only way I could pay my credit card debts with them (i have 2 cards with EWB) at that time. However, I am not so lucky cause I availed of the program in 2011, when the BSP Memorandum is not yet effective. tsk,tsk. You may seek opinion from BSP regarding this thru e-mail.
pano ko po idedemanda ang isang taong gumamit ng credit card ko,pina activate nya at pineke ang pirma ko.
@ Poison
did you lost your card? or it was stolen? if yes, report the incident, make a blotter, so that what ever was used in your card would not be your liability.
it was delivered to our house,pero since i was not usually staying at my house, my father redirected it to my boarding house.di ko alam na dineliver nila ito doon at nireceive.the person who received the cxard never disclosed to me na may nareceive syang card under my name.hindi naman kase ako nag apply for a card,pinadala lang ito ng bank kase daw may account ako sa kanila.nagsubmit na ako ng letter of dispute sa credit card company at sinagot nila ako na ako pa rin ang liable sa expenses incurred even if it was unauthorized.i never knew na may activated card ako until may dumating na billing statement sakin.humingi ako ng copy ng document na pinirmahan ng taong nagreceive ng card dun sa boarding house and i was able to get hold of this document.nakakuha na rin ako ng copy ng signed charge slips from the merchants where the card was used and hindi ko ito pirma.gusto ko pong idemanda ang taong gumamit nito.pano po ang pwede kong gawing steps to file a case.kilala ko na po ang taong gumamit nito.
hello,
ask ko lang po may utang asawa ko sa credit card yung collection agency tumawag sa akin na dapat kung bayaran kung hindi makukulong asawa ko sanabi ko wala kaming pang bayad ng ganon kalaki yung utang niyang 44k umabot na ng 205k pumayag siyang 44k lang bayaran ko pero dapat isang bigayan lang and giving me 1 month only sabi ko d ko kaya hulugan ko na lang ang kaya ko lang ibigay ay 4k pero ayaw nilang pumayag nagbigay na ko 14k sa kanila pero talagang 4k lang kaya kung ibigay tinatawagan nila biyenan ko tinatakot nila na makukulong asawa ko anong dapat ko pong gawin makukulong po ba asawa ko kasi po pati anak ko kinakausap nila na makukulong tatay nila at kung ano ano pa sinasabi nila pati anak ko po natatakot na rin .
hi good day!ask ko lang po kc may cc po ako sa RCBC ang dredit limit ko po is P10,000.00,may nagamit po ako before for my grandmother ‘s medical,na max out ko po ung limit ko na P10,000 but i cant make any payment now ‘coz a have 2 kids na nagaaral,.ngayon ung mga nasa law firm po nagpupunta sa bahay and kung anu anung mga cnasabi sa mga tao sa baha.anu puba ang dapat kong gawin?thank you po.