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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ung husband ko may utang sa credit card ngayon po, AKO ANG NATATAKOT KAZ BAKA MAKULONG SYA SA HSBC
natatakot po ako na makulong ung asawa ko dahil sa credit card na utang.. palagi po nila kaming tinatakot na kakasuhan ung aswa ko sana po matulungan nyo kami. thank you! godbless!.
sa HSBC po sya nagutang makukulong po ba sya kng di sya magbabayad? tnx.
ronalyn,
Walang nakukulong sa utang. The people calling you are not from HSBC. They are the idiot collectors of the collection agency. They will not file a case. Takutan lang style ng mga tarantadong uneducated collectors. If you want the threats to stop, then stop talking to them. When they call, just hang up the phone. It’s that simple. When those stupid collectors see that they cannot collect a single cent from you, titigilan ka din nila.
iniisip rin po namin baka hindi na sya makakuha ng kahit na anong ccount sa banko dahit sa utang nya sa HSBC please help us!
ronalyn,
When HSBC reported your husband to the Credit Bureau, the effect is that he could no longer get another credit card or avail of any loan facility from any bank. However, walang nakukulong sa utang.
Do not issue post dated checks to the collection agency.
warrior,
ang concern ko po eh may natangap po ako letter before from Molaer Law firm un nga demand letter sya eh wala po ako talagang pambayad so di ko po sya pinansin, tapos po tumawag ako sa CC company to ask kung pwede ko bang i settle sa kanila ung account ko at hingi po ako ng amnesty, pero sabi nila di na daw nila pwedeng iprocess ung request ko kasi naforward na nga daw sa ibang firm, tapos iba na po ung binigay nila ENZI naman, eh base po sa mga nababasa ko sa mga post dito eh mag bastos po ang mga collector ng ENZI,
eto po ung tanong ko:
a. Ano po ang dapat kong gawin kung sakaling puntahan ako sa house ng collector ng ENZI at ipilit na magbayad ako?
b. Pwede po ba nilang kunin ang mga gamit ko or property?
c. Bakit po hindi na pwedeng magtransact sa CC company ganung sa kanila naman po ako may utang.
Atty. gud am po, natatakot pa rin po ako dahil di ko talaga sinasadya na di makabayad ang laki po talaga na balance ko sa mga card kaya nga lang po nawalan ng work husband ko….Mahal po ba PF nyo gusto ko po kumonsulta sa inyo, tulungan nyo po ako, di na talaga me makatulog…Please help me…..
Anabelle,
You do not need a lawyer. The suggestions I wrote you and the other suggestions I wrote in this blog were tried and tested by several persons like you to be effective in protecting yourself from the unfair collection practices of credit card collectors. Please continue reading the posts in this blog for further information.
Beware of this collector agent, a named Audrey., that was she said. I paid the amount what we agreed, then she never send the letter that stating that all my debt are paid. She said she is from Bulacan but her telephone number she is using is from Pampanga, anyway here are the numbers she is using.
(045) 961-0805 , 09159443278 , 0459610805 , (045) 9610805 , (045)9610805 , 0915-944-3278 , 0915-9443278 , +639159443278.
OMG! I am about to settle my former AIG account. Ibig sabihin ba nito e even though I was able to settle my obligation with them, hindi ako makakakuha ng Certificate of Full Payment from AIG??
joel,
Hindi. Ganun ka-walang hiya ang mga demonyo sa collection agency, who are in cahoots with greedy account officers of AIG. Sa totoo lang, joel, paid na lahat ang outstanding balance mo, pero di mo alam at hindi talaga pinaalam sa iyo ng AIG. Naka insure ang credit card mo and the moment you defaulted in the payments, AIG simply filed a claim with the insurance company.
Hey, it’s Christmas time. Give that money to your children.
E sir panu yun, kasi the bank that I am working for is asking from me the Certificate of Full Payment from AIG. I have to repay it somehow and get that document. Kasi I was hired as an officer. Pag hindi ko daw nakuha from AIG yung CFP baka ma-disqualify ako from my position. Pag na-audit kasi sila ng BSP (Banko Sentral ng Pilipinas) baka magka-problema ako. So what advise can you give me? Thanks a lot!
joel,
talk direct to AIG.
my nakukulang po ba sa utang? pag di me nagbayad ng credit card, makukulong ba ako? thanks
my nakukulong po ba sa utang? pag di me nagbayad ng credit card, makukulong ba ako? thanks
boss mag-back read ka… malinaw po na yung sagot na hinahanap nyo e nasa taas lang.
guys isipin na lang natin meron pang mga ibang taong mas malalaki ang utang, at mas mahirap umutang mismo sa tao kasi may kasama pang utang na loob yun. eh sa mga credit card company, sa interest palang monthly bayad na tayo.. at meron naman silang allowance for uncollectible accounts… mababwasan pa mga taxes nila
Dear Warrior;
If a credit card collector agent threatens thru writing to file legal damages by faxing a written document to my workplace would this document be used as evidence if I file a complaint against him? Or should I ignore it since it’s a waste of time? I always fight back at these poor bastards and so far this is the most desperate mean they have done.
Please advise.
Art528,
I could not tell you if the written document you received gives rise to a cause of action since I do know the details of the document. Whether or not the written document can be a basis for filing a case against the collector is the judgement of a lawyer. If you select this option, you will have to get the advise of a lawyer. You may consult a lawyer, preferrably someone you know, and ask him if the document gives rise to a cause of action. Lawyers give legal advise for free.
It is not necessarily a waste of time to file a case against those morons, but it is not time well spent. You can have other options with devastating effect on their ego, if ever they have any.
You have other options though. You can refax the stupid document to the collection agency. If it will contribute to your peace mind, you may draw a dirty finger on the letter and/or write the words “BASTARD”, “IDIOT” around the margins. It’s tit for tat. I understand how you felt so bad receiving that written document. It’s a double whammy for you if your officemates saw it.
If you want to refax the letter, do not use your office phone. Use the fax machines from another location, like the office services available at malls. In this way, you can deny that the refax document ever came from you.
You can photocopy the document and send it by mail to their address. Do not write any comment on the photocopy.
Finally, continue fighting those idiots of the collection agency. They are a pathetic lot. They are uneducated, never been to college, and lucky if they completed high school. That is why, a job that requires them to insult other human beings is attractive to them. Moreover, they don’t get paid a dime unless there is a collection. Kaya, pag wala sila naloko, walang kita ang mga bobong collectors. Patay gutom ang mga demonyong collectors kaya nagkukumahog maka collect. Pasko na pero wala pang pera ang mga gagong collectors.
Finally, continue fighting those bastards. You will notice that they will stop bothering you when they sensed that they cannot collect from you.
Greetings!
Atty. Fred and Mr. Warrior:
(although i do not know if u are one person.)
Merry Christmas and Happy New Year!!!
I wish to spend the holidays worry free but I cant help but think about the debts I have. Collectors are being too aggressive… I understand their job but I cant really pay as of the moment (i am unemployed)… My parents already knew about it and they are really alarmed and our relationship was affected because of this.
Would this status of mine can result to difficulty getting a visa or going out of the country?
richard,
Your credit card debt will not affect your visa application, unless you have a criminal record due to other cause.
hi sir,
i recently got a leetr from ENZI coporation.
The letter says that HSBC has endorsed my account to them and they offered settling options 1, 2, and 3.
Option 1 : one time payment
option 2: 5 months installment
option 3: 10 months installment
How could go through this action of the other party… I hope you could advise me on this thank you…
Warrior;
Thank you for the advise. Best wishes and cheers!
Hi Warrior
I am filipino living in Dubai and I have multiple credit cards and a large loan debt which i am now unable to manage.
I can see from your previous advice that the debt collection agency can legally do no more than harrass me.
However I have recenty seen an article in the local press here (see 7days.ae december 15th 09 )which made front page news that Dubai is using Interpol to reclaim even small loans. The example the article gives is a British man who owed only 5,000 dirhmas to a rental car agency(around 65,000 pesos)and Interpol came after him in UK.
This makes me very worried because my debt is much bigger (2.7 million pesos) and I was planning to run to Philippines because I can no longer manage all my repayments and I will surely go to jail here if I stay.
I have no assets in Philippines or anywhere else so my question is, how likely is it for Interpol to come after me in Philippines and if they do, what can they do to me? Can they send me back to Dubai to go to jail? Can they put me in jail in Philippines? What are my rights in Philippines? Will my passport be flagged at all international airports so they can catch me? Do i have any other option but to run?
I am scared and would really appreciate your advice.
james,
If you can return to the Pinas as soon as possible, nothing will happen to you.