Posted on June 21, 2007 in Money & Finance
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.)
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dear warrior
hello sir nag work po ako sa bank at me utang ako sa ibat ibang credit card. updated naman akong magbayad for so many years kaya lang po napabayaan ko few months ago dahil sa financial problem and up to dis time ganun pa din. i heard so many embarrassing words sa mga collectors kung anu ano cnasabi nila parang di makatao. minsan naka encounter ako ng caller atty daw sya sabi nya kya sya tumawag hindi pra mag collect just reminding of my dillenquent account to a point nagbigay pa sya ng amnesty. sa loob ko bat nya sinasabi un kung hindi sya naniningil. sinabi nya din na kapag hindi ko nabayaran utang ko sa nirerepresent nyang bank gagawa daw sila ng letter nka address sa president ng company actually binanggit pa nya ung name. at pag hindi pa daw ako umaksyon gagawa daw sila ng letter uli sa company na ipapa deduct ung 15% s sweldo ko. curious lang po ako me case po ba talagang ganito.
thanks and regards po sa column nyo.
jodilyn,
BOLA lahat ang sinabi sa iyo ng collection agency and that stupid “atty”. Ang tarantadong “atty” na tumawag sa iyo ay hindi tunay na attorney. Why not ask him kung ano IBP number niya? All lawyers have an IBP number as a member of the Integrated Bar of the Philippines. Isa pa, lawyers do not use their time collecting credit card debts.
Totoong di makatao magsalita mga hayup na collection agency. So, why talk to them in the first place? Why bother to explain to those stupid non-entities? There is no use reasoning out with them. Tatakutin ka lang ng mga inutil na iyon.
Here’s what you will do, Stop all communication with those stupid collectors. Do not receive any letter from them. Do not issue post-dated checks. Mga SUPER BOBO ang tarantadong collectors. Mga low IQ sila or no IQ at all. Mga SINUNGALING PA. They tell you they are lawyers, when actually they are not. They cannot write a simple sentence in English!
Fight back. It’s up to you. Pag lumaban ka, panalo ka. Pag di ka lumaban, talo ka. LIfe is simple, do not make it complicated. WALANG KULONG SA UTANG.
Hello warrior,
panu pala ang process if the credit card company files a case na “sum of money”? 3 months past due na ako sa BPI 70k due to financial problems. can they take any property i own, mortgaged car etc? and pag BPI daw, totoo ang demand letter na galing sa DATU attorneys at law something
Bong,
Do not believe the collection agency that they will file a case against you. BOLA lang iyon. In the first place, if they really and truly file a case, they are not sure if you will attend the hearing. So, gumastos na sila sa docket fees and filing fees sa court, suma total, wala din collection mula sa iyo.
Kung di ka mag attend ng hearing, ok lang. Walang kulong iyon. Walang kulong sa utang. Do not issue any post dated check to the collection agency. Stop talking to the collection agency. Pag binastos ka ng tarantadong collector, bastosin mo din. Tit for tat.
Fight back. It’s that simple.
hi sir,
ask ko lang wat to do..
i immediately log in after an argument to a CC collector.
this is due to the imposed threat that an ATTY with his staff will be sent in our house or to summon me at barangay hall for my credit issues.
i am a good payer when i am still employed but unfortunately i don have a job right now. i cant find any means to pay the CC Collector/ agent advise ” wala ka ba mauutangan para makapagbayad?”, i dont believe that would be a good idea. But i will pay at the rate that i could or as settled as soon as i have my job. my mother sometimes receives the call and she was frightened by the words of this agent. i hope you could enlighten me about this… i do not want my name and reputation be ruined jas bec. i cannotpay at this time..i am really emotionally and mentally bothered at this point…
thank you…
richard,
Lahat ng sinabi sa iyo ng credit card ay panakot lamang. Walang jurisdication ang barangay sa credit card debt. Kaya puwedeng hindi ka umatend sa meeting sa barangay.
Do not borrow money from other people just to be able to pay the credit card. Sa suggestion na iyan, makikita mo kung gaano kaBOBO ang kausap mong collector.
Relax ka lang. Walang nakukulong sa utang. Simula ngayon, stop talking to that stupid collection agency. Walang masamang mangyayari sa iyo kahit di ka makipag usap sa collection agency. When they call, just hang up the phone. Do not receive any letter from them. Do not issue any post dated check.
for jodilyn,
hi ask ko lang from what bank ka nag work? kasi sa bank din ako nagwowork and same tayo may problem sa credit card…can you email me? jhoeisantander@yahoo.com. thanks…Advance merry christmas to all and to you sir warrior….
dear readers,
have you all tried to send a CEASE AND DESIST LETTER?..lets fight off these nasty collectors mano a mano…its really simple, you can get a lawyer to draft a cease and desist letter and send it via certified mail to the agency…i havent done it yet but i am planning on doing it as soon as possible…
dear warrior,
what do you think?
thanks!
pauline
pauline,
You may try the Cease and Desist Letter. But do not abandon the tried and tested suggestion that I have been sharing in this blog. You fight back, you win.
dear warrior,
thanks again for the advise!
i appreciate it!
pauline
thanks warrior! youre a heaven sent ! keep up the good work
hi po i really need your advice kasi grabe na talaga ang kaba ko. i have credit cards in dubai which i fail to pay kasi wala akong work at umuwi nalang ako sa pinas. my questions are:
>makukulong ba ako ngayon na nag issue ng legal notice ang bank.
>pupuntahan ba nila ako dito sa bahay ko kasi hindi sila makakontak sa phone namin dahil iba na ang number.
>kung aalis ako ng ibang bansa hahabulin ba nila ako?
natatakot ako kasi wala pa talaga akong pambayad kasi wala akong work.
thank you so much for the help.
L
please read the previous posts in this blog. I already posted answers to issues you raised. Thank you.
Dear Sir,
Like many of the above i got problems to many of my credit cards, Like CTbank & Citifinancial, inspite of my request to please give me a program for my credit cards coz as of now im encountering financial problems,my husband lost his job…they still pressured me, they tell me that they will talk to my manager for me to be terminated in my work coz im not paying my credit cards…They always tell me that they will put it in legal, help i was already pressured, & can’t sleep at night thinking my unsettled credit cards.
Anabelle,
You are actually talking with a collector from a collection agency, not an employee from CTbank (shit-y bank) or Citifinancial. Your request means nothing to those greedy collectors.
The Philippine labor law prohibits any deductions to be made on your salary in addition to the mandated deductions like SSS, Philhealth, Pag-Ibig or union dues, if you are a member of the company union. This means that deductions due to credit card debts are illegal. This means also na BINOBOLA ka lang ng tarantado at patay gutom na credit card collector.
BINOBOLA ka din about the legal action. For sure, the collection agency will not file a case against you. Magastos ang mag file ng case, tapos hindi naman sure ang collection agency kung aatend ka ng hearing.
Sa madaling salita, TINATAKOT ka lang ng inutil na collector na walang alam kundi magmura at mang insulto ng mga disenting tao like you.
Here’s what you will do. Do not receive any letter from the collection agency. Do not talk to them or just hang up the phone kung sila pala ang tumawag. Ok lang ito, kasi WALANG TAO NA NAKUKULONG SA UTANG. Yan ang tandaan mo.
Forget the damn credit card. As you have said about your situation, there is not much you could do. Save whatever money you may have for the needs of your children. Be careful next time in getting a credit card or making a loan. I hope you can now sleep soundly.
Hi. I heard from a friend who had been in default in her credit card payments that after you have been blacklisted by credit card companies, your name will clear after 5 years. She claims she was able to get another credit card from the same company after 5 years. Is that true?
Angelfire Sy,
I’m sorry. I could not confirm or give you any further information on this issue.
dear Sir,
i need some advice for about 4months now i failed to pay my dues in my credit cards due of finacial problem,nawalan po kasi ako ng trabaho for about a year now may savings are not enough to accomodate my every month obligation,talaga pong malaki ang naging problema ko financally,2po ang anak ko parehong nag milk pa,collection agency always call us reminds me my dues,pinapaobliga na nilang bayaran ko nadaw lahat ang utang ko kasi po ang credit card ko may mga pallite scheme,kung di ko daw po mabayaran kasi nasa Rtc collection agency na daw ho kakasuhannila ako,ang laki po ng total na utang ko halos dobledoble po ang interest,kung di ko daw mabayaran ng buo,may program sila for 3yrs.to pay at may tubo nanaman every month,sa takot ko po dahil nasa attorney na daw at kakasuhan nila ako,nag submit ako ng letter sa credit company where i have credit,at nakikiusap kung maari bigyan pa ko ng palugit at babayaran ko sila ng monthly na kaya kung ibigay lang at wag nalomobo pa ang interest to lessen my burden.pero ang tumatawag padin po sa kin ay ang collection agency at tinatakot po ako.ano po ba ang maiadvice nyo sa akin hirap na hirap po ako sa kakaisip ng problema ko sa mga utang sa credit card,ive been a good payer before sa bdo at citibank for how many years i;ve been a member.antay ko po ang advice nyo,thank you and God Bless.
angeline,
You said that the collection agency “tinatakot po ako.” Tama ka, talagang tinatakot ka lang ng tarantadong collector sa collection agency. Since sabi mo din ay may financial problem ka and you have two kids, then stop talking to the stupid collector. Habang nakikiapag-usap ka sa kanila, lalo ka lang tatakutin. So, stop talking to those stupid collectors.
Hindi totoo na kakasuhan ka nila. Panakot lang iyon. Magastos ang mag file ng case. Kahit na manalo ang punyemas na credit card, hindi rin sila sure kung maka collect nga sa iyo.
Remember this: WALANG NAKUKULONG SA UTANG. Kundi mo kausapin ang collector, ok lang iyon. Walang masamang mangyayari sa iyo. Tignan mo, pag tumigil ka sa pagsagot sa telepono sa kanila, magsasawa din ang mga hayup na collector na iyon. Kung pwede, magpalit ka ng number. Kundi ka pede magpalit, bagsakan mo ng telepono ang collector. Tarayan mo sila. Walang masamang mangyayari sa iyo. You are just defending your honor.
Do not issue any post dated check to the collection agency. Do not receive any letter coming from the agency. Kalimutan mo na ang credit card debt mo. Bayad na lahat iyon. Di mo lang alam na ikaw ay nagbabayad ng insurance noong ikaw ay good standing pa sa credit card. Ganyan ka suwapang at dupang ang mga credit card companies. Bayad ka na, sisingilin ka pa. Tatakutin ka pa ng collection agency.
Focus on taking care of your children.
Dir sir,
this site is really a blessing to me. i was just trying to find certain lawyers who are calling me at home if they really are genuine lawyers, regarding my loan account in UAE back in 2007. and yes like many other people i’ve been insulted and degraded (which is i think with the horrible words they used in our tagalog language is more than enough as payment)
the first collections company was from LexCitadel and they claimed that they’re under Domingo and Molaer law firm.I did responded to the calls but did not give them anything coz they were not able to provide me any of the documents i was requesting. It started this year some time in july. They even gave me an e-mail address of a certain julie cruz , of which is @emirates.com. they told me she’s directly from dubai. i e-mailed her a couple of times, at first i felt she’s ok that maybe i can just deal directly with her, but then after the last confrntation over the phone with a certain litigation officer from LexCitadel, i e-mailed ms.julie about this incident for how many times. and then when she suddenly replied out of the blue, she did not seem to understand my situation again and also mentioned in her email that i’m only doing delaying tactics which will not help me at all.when the collections co. called at home thereafter i just told them to do what they want since i cannot pay what they’re asking me; the amount is like 3 million in pesos and they specifically told me to pay in full… they stopped for a month due to the typhoons ondoy and pepeng.
and now, ENZI corp. naman under atty. wilfredo garrido at atty. may tattle naman is the one calling me up, that started nov.05,2009 and Ms. julie cruz is again the one who contacted them from sharjah this time..ms. malou morales called me up and claimed that she’s from CMAP but also going to sharjah and is connected with the bank there, which were all very confusing. this lady monster disrespected my mom recently, and i got mad coz she’s hypertensive..i talked to this ms. morales and she banged the phone so hard that it hurt my eardrum.and finally, yesterday atty. wilfredo garrido called and talked to my mom, telling her that they will be sending the papers this week.
they said that i already have a police case filed aginst me in dubai and they can file a civil case here as well.
what should i do?
how would i know if these lawyers are for real?
and the LexCitadel co. once sent me a letter dated sept.17/09 but it was not through post coz there is no stamp on the envelope. what will i do with it?
what are the proofs do i need to ask from them to know if they’re legal since i did not receive any letter directly coming from the bank in UAE?
please help me..
thank you!
morning,
are you in UAE or in Pinas?
If you are in Pinas, you can follow the advise that I wrote in this blog on how to deal with collectors. I want you to remember that in PInas, walang nakukulong sa utang. Because of this constitutional protection, it is safe for you to ignore the calls and letters of the collection agency. Nothing bad will happen to you if you ignore that “3 million” credit card debt. You can throw all your worries outside the window.
Change your phone number or simply hang up, bagsakan mo lang ng telepono ang mga stupido collectors. Binabastos ka na at minumura, why still insist to talk to them. Nothing bad will happen to you if you ignore those nincompoops from the collection agency. Hindi ka makukulong!
During the months before December, the collection agencies are hyper-active. They are under the no-collection-no-payment contract. Sa madaling salita, magugutom ang mga demonyong collectors kung hindi ka nila mapilit magbayad. Magsasawa din iyan pag hindi mo na sila sinasagot.
Do not deal with them anymore right this minute. They are fake lawyers. Why not try to ask “atty” wilfredo garrido his IBP number? All lawyers who are members of the Philippine Bar have an assigned IBP number. ONe more thing, lawyers do not make calls to collect debts. Ang kausap mo ay isa lamang na patay gutom na collector.
I do not know the rules in UAE. Perhaps, if the UAE bank reported you already, you not be able to travel to UAE anymore. Even so, hindi ka makukulong kung nandito ka sa Pinas.
morning,
by the way, do not receive any letter from the collection agency. do not issue any post dated checks.
gud day sir..just received a call from molaer pero dnony ko na ako ung kausap nya then he txt me na “alam ko ikaw yung kausap ko sa phone nyo kung ayaw mo ng pinupuntahan ka ng mga tao ko magbayad ka ng obligation mo sa citibank” pnabasa ko sir sa misis ko sinagot pla ng misis ko ng “bastos ka magtxt ha at nakakaintindi ka ba ng SUE ME?”….tama ba sir gnawa ng misis ko?tlgang wla pko sir ibabayad e…thanks
jorge,
Very correct ang ginawa ni misis. That’s the way to deal with those stupid collectors. Fight back! Huwag kayo mahiya. Walang karapatan ang collection agency na bastosin kayo. Do not receive any letter from them. Do not issue any post dated check. Stop talking to those nincompoops. You should congratulate your wife for her bravery, and, hey, why not treat her to a burger.
thanks sir…more power & advance merry x’mas…god bless…
morning,
why allow yourself to age 10 years older? be comfortable with the thought that the Philippines Constitution prohibits committing a person to prison for reason of debt alone. So, forget that damn debt of yours. Some things happen in life over which you have no control or loose some control over certain things. That’s life. Just let it be as long as you do not commit any crime and try to live your faith whatever that may be to you.
your debt has nothing to do with your application to travel or migrate to another country. banks do not share their databases because of certain restrictions and agreements between countries on financial matters.
collection agencies are just using the names of lawyers. They pay the lawyer a certain amount for using the name of the lawyer’s law office. However, the one who called you is just a low-level patay gutom na collector who works under the arrangement no-collection-no-pay. Lawyers do not spend their time calling clients to collect debts from defaulted credit card holders since such acts are unethical and a violation of the lawyer’s oath.
Collectors are such big liers that they tell you they are from citibank or they tell you they are lawyers, when they cannot even speak or write a simple sentence in correct English. That’s why, they talk to you in Pilipino. They also sign on the demand letter although they are using the letterhead of a real law office. Iyon mga gagong collector lang ang naka-pirma dun sa collection letter na kinatatakutan mo.
If you will be able to get the IBP number of that “atty” who called you, file a complain in the supreme court against that stupid “atty” for threatening you with suit and using foul language, which are offenses under the code of ethics for lawyers.
The best thing to do is to ignore those nincompoops. Right this minute, stop answering their call or receiving any letter from them. Go on with your life. Save whatever money you have for the needs of your children. Do not issue post dated checks to the collection ageny or to anybody.
hello po! meron akong pastdue account sa citibank, nalipat napo sa collection agency, & now hinaharassed po ako nung tao nila dun pati sa office pati mga kasamahan ko pinagmumura nila, iba2 pa ung pangalan na cnasabi nila,, san ko po ba cla pwedeng ireport, gccs & associates corp name ng co., nkakadegrade lang po kc, kung ano2 pngsasabi,, papakaladkad daw ako dito sa office, i badly need your help.
bilogski,
Tell your officemates to hang up the phone when the collector calls. You do the same. Tell your housemates to do the same. Walang nakukulong sa utang. Hindi ka din makukulong kung isnabin mo ang tawag at letters ng mga patay gutom na collector. The more you talk with them, the more you will be afraid, so, stop talking to them. You can report the stupid collection agency to Bangko Sentral. But BSP is not of much help. So forget reporting the incident. Ignore the phone calls. Do not issue any post dated check to anybody.