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. 
Loading ...
Hidden due to low comment rating. Click here to see.
Poorly-rated. Like or Dislike:
-10
Nagkaroon po ako ng loan noong 2003 sa AFSLAI amounting to to less than 500k. Nagresign po ako sa BFP year 2004 at hindi ko na ito nabayaran. Meron po akong 2 co- makers. Ngayon po ay pinapadalhan ako ng sulat from the collection agency amounting to more than 1M na. Sinasabi sa sulat na kailangan kong pumunta sa court. Pwede po ba akong mag file ng bankrupcy kung wala na akong pangbayad dito? Ano po ba ang best na dapat kong gawin dahil imposible na po na bayaran ko itong halagang ito.
gud day sir…me nagpunta smin collector from molaer akala ko sir simpleng tao lng na magtatanong kya hinarap ko then pag harap nya nakita ko id nya me nkalagay domingo molaer which is parang fake na ID..sana sir dko kakausapin kaso andun na..now sir tnatanong nila kung bakit di ako makapagbayad and saan daw ako nakuha ng panggastos..so sir cnagot ko sya wla akong trabaho and now naninirahan ako sa byenan ko…bakit ganun sila sir pati financial ko tinatanong nila kung san ako nakuha…sa totoo lng sir me sideline ako ryt now kaso di pa rin tlga kasya smin..one thing sir cnabi ko sa collector na from collection agency sya cnagot nya yes then iniinsist nya na me natanggap daw ako na letter from citibank na ung account ko raw e nsa kanila na..wla ako natanggap sir kahit citibank wlang masabi skin kung asan na account ko..sinabi ko sir sa collector asan ung copy na katunayan na nsa inyo na account ko wla sya mapakita skin sbi ctbnk daw magbibigay nu..naguguluhan ako sir nagtuturuan sila….me bnibigay silang letter sir skin dko tinanggap sbi ko wla tlga ako ibabayad and sinabi ko kung gusto nyo dalin sa court dalin nyo…tama ba sir ginawa ko?pati sir ung lawyer na nagadvice skin tinatanong nya name pero name nya ayaw sabihin…sir ano dapat gawin ko sakaling bumalik sila?thanks…god bless
jorge,
Don’t talk to them. The collection agency has no right to go to your house. Pag bumalik sila, pagsarhan mo ng pinto. Kung di mo sila nahalata at naka usap mo, just close the door. Wag mo sila papasukin. Tatakutin ka lang nila. Ipakita mo na hindi ka takot sa mga hayup na iyon. Pag magpumilit pumasok, you have the right to defend your home. Call the police, tell them my mga magnanankaw. Hampasin mo ng dos por dos. You have the right to defend your home. Walang nakukulong sa utang. Wag kang mag issue ng post dated check sa collection agency.
Nagkaroon po ako ng loan noong 2003 sa AFSLAI amounting to less than 500k. Nagresign po ako sa BFP year 2004 at hindi ko na ito nabayaran. Meron po akong 2 co- makers. Ngayon po ay pinapadalhan ako ng sulat from the collection agency amounting to more than 1M na. Sinasabi sa sulat na kailangan kong pumunta sa court. Pwede po ba akong mag file ng bankrupcy kung wala na akong pangbayad dito? Ano po ba ang best na dapat kong gawin dahil imposible na po na bayaran ko itong halagang ito.
Ramo,
Your situation is different from that of credit card holders. I suggest you see a lawyer. You can discuss with your lawyer if bankruptcy is an option.
warrior, tumawag nmn ung metrobank n pag d ako mkabyad badlist n dw ako..ung pafamily ko natatakot about skin..kc minsan iba2 ung cnasbi nila wla ako nsa cagayan,mindano,minsan s work..
cindy,
The caller is not metrobank. The caller is probably a collection agent. Sabi lang nila taga-Metrobank sila. Collection agents also introduce themselves as lawyers. Metrobank will not waste the precious time of its employees just to follow-up your payment.
First, let me make one thing clear. WALANG NAKUKULONG SA UTANG. Tell that to your worrying family members. The Philippine constitution says so.
Now, for the blacklisting. The moment your account became past due, you were already reported to the Credit Bureau as required by the Bangko Sentral. WALA DIN KULONG IYON. The worst that could happen to you is that you will not be eligible to apply for a credit card, even from another bank. You will not be eligible also to apply for loans offered by banks. IYON LANG.
So, what do you or your family do now? Ignore calls from the collection agency. Pag tumawag, hang up the phone. If they go to your house, close the door, don’t talk to them. Collection agencies have no right to go to your house. But you have the right to protect your home, which means, that you can hit those collection agents with a dos-por-dos on their heads since they are trying to violate the your privacy. Do not issue any post dated check to the collection agency.
Your family members do not have to answer the collection agency. In the first place, wala naman utang ang family members mo. They don’t have to answer in your behalf. Hindi nila alam, wala silang alam.
Make it difficult for them. Magsasawa din sila. Nagbabakasakali lang sila kasi nga ang mga employees will get bonus, eh kung madala sa takot, mapipilitan magbayad. Style lang ng collection agency.
Whatever money you have, save it for your children. And be careful with your expenses from now on.
kainis lng kc.. sbi ng mama ko eh kausapin ko nlng n sbihin n wla n akong work as of now..sample po kung mkaalis nmn ako ng pinas at babayaran ko ung account ko s credit card mawa2la b ung nme ko s bangko central?tnx poh s advice its a big help for me…
cindy,
the name of the game is TAKUTAN at PINAPAHIYA. kung lumaban ka, panalo ka. kung hindi, talo ka. It’s your choice. Ikaw ang may utang, you decide.
It’s useless to reason with collection agents. it’s a waste of time. they just want to collect. wala kasing suweldo ang mga hayup na iyon. umaasa lang sa komisyon. kaya pursigido maka-collect. malapit na pasko.
tnx warrios s advice. warrior pag my pera ako at ma fully paid ko ung mga account ko mawwla b ang nme ko s bangko central?
tnx again
cindy,
When you can pay your credit card debt, try to talk directly with the credit card company. You will loose a lot if you pay through the collection agency. Collection agents are not receiving a regular salary. They operate under a no collection, no payment scheme. That means that if their threats and insults will not produce any results, they get nothing.
Credit card companies are so super fast in reporting you to the credit bureau. But if you decide to pay in full, they will not have your name removed from the list. Credit cards paythe credit bureau to have your name or any defaulted credit card holder listed in the credit bureau. Since they will not pay to get your name removed, it is you who will pay the credit bureau. I do not know how much fees are paid.
If the credit card company accepts your full payment, ask them to give you a certification that you are fully paid.
Good Day po sa lahat,
Isa din po ako sa mga hinhabol ng mga CC collector, specially bilkish. 2 years ago bumayad ako ng credit card sa ENZI corporaton thru sa account nila amounting Php.75k utang ko daw ito sa Standard Chartered dubai, pero noong makabayad na ako sa ENZI, di sila nag-issue ng Bank Certificate or Payment Certificate. kaya sino po ang maniniwala na sa CC collectors na yan na super manakot, lahat ng pananakot ginagawa nila para makasingil sila,
Maraming salamat sa Blog na ito at marami tayong napupulot na aral.
Thanks a lot warrior.
afraidmom,
Your attempt to request the collection agency for a more affordable payment plan will be ignored. Wala sa kanila ang paki-usap mo. When they see that you are afraid, really afraid, the more they will pressure you.
The payment of P1,000 will not affect the outstanding balance of your friend. I suggest you pay whatever your could afford directly to your friend. Stop talking to the collection agency or receiving any letter from them. Do not issue any post-dated check to the collection agency.
Huwag ka na maki-usap sa mga ulol na collection agency. Napaka-ligaya ng mga tarantadong collector pag nakikita nila ang hindi makabayad na credit card holder na humihingi ng awa sa kanila. Sa totoo lang, pinag-uusapan nila sa opinsina kung papaano nila kinakawawa ang isang nakiki-usap sa kanila. Panay ang halakhakan nila, lalo na kung natakot at napilitan magbayad ang credit card holder, kahit na hirap sa buhay, dahil minalas na mawalan ng trabaho.
Ayoko sana sermonan ka. Kaya lang, kawawa ang friend mo sa nangyari. Oo nga at nawalan ka ng trabaho, pero nadamay tuloy friend mo. Mabuti na lang at walang kulong sa utang. Kaya lang, ang friend mo, naka-lista na sa Credit Bureau. Hindi na siya puwede mag-apply sa credit card or mag-apply ng loan sa banko.
I repeat, do not talk to the collection agency. Those nincompoops do not understand your situation. Tandaan mo, walang kulong sa utang. What you should do now is to make amends to your friend. Bayaran mo siya directly as soon as possible all the amount you owe her.
I need help po. I used to work po sa uae. Like all pinoys working in UAE nakakuha po ako ng loan at credit card sa UAE ng walang kahirap hirap. My bank was HSBC. Now sometime 2007 I was terminated from work for some reason na hangang ngayon di parin malinaw saki. one day kinausap ako ng isang head ng division namin telling me na my services are no longer needed kasi daw medically unfit na ako for work. I suffered a work related injury,. thats right nagka “slip disc” po ako and I was told na di na ako fit to work. Una dapat binigyan nila ako ng compensation kasi work related yung injury ko but the company never gave me anything. pangalawa napilitan ako umuwi kasi mag eexpire yung work visa ko. samakatuwid di ko nabayaran ang mga pagkakautang ko sa HSBC.
nung 2008 nag email ako sa bank telling them about my situation and bakit ako di makakabayad muna. I emailed them twice and after that di na sila sumagot sa emails ko. then just this month a certain “ENZI CORPORATION” nagpadala ng sulat sakin asking me to pay up or kakaushan nila ako. the sum has balloned to 700k ang they are asking me to pay up 50% nung 700k in just 5 days! imagine! saan ako kukuha ng ganong kalaking pera. even after 2 years di parin ako naka recover sa injury ko masakit pa din likod ko and nahihirapan kumuha ng job. my current job is no position to get me past my debts. medyo nag panick po ako and natakot.
they started calling sa bahay and demanding money or a case will be filed against me. siyempre medyo natakot na ako. ang tanong ko lang makukulong ba ako dahil sa utang ko? pero sa pagbabasa ko dito sabi di naman. natatakot ako na baka maapektuhan ang job ko and mas lalo na akong mabaon financially. ano po ba ang gagawin ko? and what could i be facing?
qball,
please read the posts written in this blog. I already answered issues similar to your situation. Regarding your termination from work, try consulting with POEA.
Dear Mr. Warrior,
Hi how are you?? its me again, in a couple of weeks never recieve an email from Bilkish Int’l sa pinas, but today I recieve an email from clint ramos saying as follows:
Hi Kabayan! How are you?
We can soften the scheme of your payment so that is would not be burdensome on your part. You may pay in monthly basis if you can’t close the account in one time. Provide atleast minimal payment for this so that we can temporarily hold your Police Case and Global Travel Ban to the Bank.
We will be expecting for your cooperation Kabayan!
I will wait for your generous reply..thanks.
Question: Do you really think they can do that? as what he says or said as above? Travel Ban to the Bank??? and Police case?? Warrior I never reply this email and I have no plans at all, though I just want to make sure if they can do that? when I was terminated in UAE and was jobless for almost a year, can’t find any job in pinas. I tried to go back in UAE but my boss give me an immegration ban for a year instead of waiting a ban to get over. I got married and move outside pinas, I am a Permanent Residence of another country. Can they impose a travel ban on me like UK, US and pinas??
Your reply / advice is highly appreciated. thanks a million.
babes,
do you still believe that crap? I advised you to forget that credit card. Why not enjoy your being a permanent resident in that country of yours.
sir warrior may problema ho ako yung HSBC card ko parang 2004 pa ho den hindi naho ako nakapagbayad dahil inuna ko hong gatas nang anak ko at mga bills ngayon ho tumawag sa akin ang collections agent nang domingo at pinapasa nya kay atty domingo daw dahil gusto raw nyang makipag-usap sa akin sabi ho nang attorney ang bill ko ho ay 200,000 something pero pababayarin nya lang ho daw ako nang 14,000 kapag d raw ako makapagbayad or settle magkikita daw kami sa barangay or else he filed a case for me ano ho bang gawin ko d ko pa kaya magbayad dahil inuuna ko ho basic needs namin po pls. enlighten me takot na takot ako sa kanya dahil napakasuplado talaga nyang magsalita sa phone
kurt,
please see previous answers to similar inquiries. The posts above contain advise for situations similar to yours.
hi sir,
i am Richard
i have a credit problem
a law firm agency sent me a letter and is calling me from our land home phone …
according to them if i will not pay i will be subjected to court hearing…
i was unable to pay my bills since June due to unemployment and the effects of typhoons
i hope u could advise me…
richard,
please refer to all previous posts. The posts contain advise on what you could do with your credit problem.
dear warrior,
I just received quite a similar letter as what Angel received. It was stated in the letter that they will file a Writ or something (sorry in my frustration with these collection agencies, eh na punit ko na ang sulat at tinapon) wherein the sherif will levy or seize any and all of my properties if I fail to pay my debt plus 30% attorney’s fees.
You basically mentioned that these letters be ignored but if the time comes, can they really seize my properties? (funny at wala naman akong properties, my husband doesnt even have work and naloloka na ako kakahanap ng pera para sa pangangailangan namin)…i want to know whats the scenario if and when that happens.
your response is deeply appreciated.
thanks,
pauline
pauline,
Those stupid collection agency employees cannot get any of your property. When you applied for your credit card, you did not secure the credit card by a single property belonging to you.
Don’t worry. The collection agency will not file a case against you. Sure na Sure. Walang kaso. Puro takutan lang. Puro BOLA. Don’t receive any letter from those nincompoops of the collection agency. Don’t talk to them. Magsasawa din sila pag hindi ka na ma-contact.
If somehow, you received a letter from them, cross out your name on the front of the envelope. Write in big letters “RETURN TO SENDER” (imitate the handwriting of the mailman) and drop the damn letter in the mailbox of the post office near you. Do not give the letter to the post office employee at the counter. Sa mailbox mo drop ang letter.
Whatever moneys you can get hold of, save it for the needs of your children.
dear warrior,
matagal ko nang binabasa ang blog na to..and in my stupidity and at the heat of the moment napag punit punit ko ang sulat..i should have rememberd your advise and done exactly what you told me just now..anyways, next time that is what I shall do and maybe speak with my neighbors not to accept any letter for me..sometimes kase a good deed can result to a lot of trouble din…
but thanks very much .. i really appreciate your advise…minsan talaga kailangan may mag paalala sa amin (na defaulters ) na dapat wag mahina ang loob..
thanks again and good afternoon to you!
pauline
dear warrior (and readers),
napansin ko nga na bigla na namang sumolpot ang mga collection agents this november…i basically ignored their other tactics before and somehow naka experience ako ng reprieve sa pangungulet nila..but today (november) naka tanggap ulet ako ng sulat na naman so totoo nga na nag bloo bloom ang instances ng pang haharass nila kapag november and december because they know too well that december is a time na “madami” pera ang mga Pinoy..
however, now ko lang din nalaman na insured na ang credit card payments ko so why bother paying?..by the way..this is from BDO (bangko de oro)..anybody out there experincing the same thing? napansin ko lang kase na puros citibank (shit-ybank) ang defaulters halos…
thanks for reading my entry
more power!
pauline
pauline,
“huwag maghina ng loob”, that’s right. life is like that…don’t quit.
goodday sir, tulad din po ng ilan, meron di pon akong credit card problem actually sa AIG at CTBANK. Last March po ako huling nagbayad. (Gipit na po kasi ako, sa totoo lang maraming naging pampinansyal na problema, school payment ng anak ko, nagkasakit po ako, etc) Prior pong hindi ako nakabayad , tumawag po ako sa AIG at CTBANK. Nakiusap na kung pwedeng stop na nila ang interest sa utang ko at i reduce from there huhulugan ko na lang monthly para lang mawala na ang utang ko. However di po sila pumayag kasi activate daw ang account ko at saka wala daw silang scheme. So ganun na nga po ang nangyari. Nag kasunod sunod na ang problema . At simula nun tawag na sila ng tawag. Dun po sa AIG na ang pangalan ng collecting agency ay JAB COLLECTION SERVICES, mayroon pong isang NOEL CUEVAS ang nang harass. Minsang ang anak ko ang sumagot, ito po ay 8 years old at wala po ako sa bahay nun. Sinabihan po nilang SINUNGALING ang anak ko. Pag uwi ko sa bahay. Umiiyak ang anak ko na trauma. Awang Awa ko.
Siyempre po hindi po ako makapagretaliate dahil aminado naman akong me utang ako. Sumunod, tumawag ulit. Magnanakaw daw ako. Kumukuha daw ako tapos hindi nagbabayad. Sa totoo lang 4 years po akong member ng AIG, MAARING minimum ang binabayaran ko pero nagbabayad ako. Ngayon lang ngang taon na ito dahil kapos po talaga ako. Gigil na gigl talaga ako, nanakot pa sila na kukunin daw nila ang gamit namin (ka hit daw kutsara.) I file daw nila sa QC RTC ang kaso ko. Wala na raw hearing dahil MALAKAS sila sa QC RTC. Maari po ba ito?
Dun naman po sa CTBANK SINCE1992 pa po ako member dito. Sa tutuo lang ngayon taon ko lang talaga napabayaan ito, Minsan tumawag dito po sa opis, sabi po sa akin HUMANDA DAW ako. Sana po payuhan ninyo ako dahil Ninenerbyos po ako. Na hiblood na nga po ako eh. Salamat po
haydee,
Walang nakukulong sa utang. If you cannot pay now because you are hard up, so be it. Do not talk to the collection agency anymore. It is useless to reason out with them. If they think you are already afraid, the more na tatakutin ka. Do not issue any post dated check to the collection agency.
Hi Atty. Warrior,
Advance merry christmas po! i have the same credit card problem and i badly need your advice kasi sobrang worried na po ako. I also have an unpaid credit with Citibank but sinceI dont have a job for almost two years now I was not able to pay it which made my debt balloon triple times. I received a demand letter from a certain law office asking me to pay my debt and failing to do so will result to a case filed against me. They included in the demand letter the case #, and MTC for violation of RA8484. Totoo po ba ito? I’ve heard some people who have the same experience but they disregard it. Pero kagabi I saw on TV a case filed against a credit card holder who failed to pay her debt na umabot pa sa Supreme Court. Ano po ba ang maigi ko na gawin? Sa ngayon hindi pa ako makakapagbayad dahil wala pa akong work. pero natatakot po ako na baka makasuhan nga ako. Please help me. Ang NBI clearnace ko po ba hindi maapektuhan in case hindi na ako magbayad talaga? pasensya na po attorney kung dami kong tanon, but I will appreciate your advice so I can move forward from there.
Thanks po
rudy,
Ignore the letter. Bakit kamo? WALANG KULONG SA UTANG. Let them file the case. Do not attend the hearing. Wala din kulong iyan.
Regarding RA 8484, the law does not apply to you. You did not use fraud when you applied for the credit card. The demand letter with case #, MTC, etc. ay BOLA lahat. Ignore mo lang. Use your time to find a job. Forget the damn credit card. Cut all communication with the collection agency.
Thank you atty. warrior… i’ll take your advice.
hi rudy.. we share same story… ano ginawa mo? nababahala na din ako e… totoo ba un may nakasuhan? i dont want to ruin by name and reputation…