Credit Cards and Unfair Collection Practices

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.)

2,442 comments

  1. Good morning po! Grabe po ang harrassment na gunagawa ng aiqon capital. Below the belt kung timira, ngayon po sila ang major problem ko lalo na po si MR MIGUEL LAGMAN, sobrang bastos po nya. Minsan sana maranasan nya sa buhay nya na magipit at gipitin para maramdaman nya na TAO ang kausap nya at di sa knya my personal na pagkakautang

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  2. Report sa central.bank lahat.mfa bames at office address.nila, all forms of harassments

    Get s PAO lawyer para libre ang services.nyo

    Verify with the courts

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  3. Bastos tlga mga yan parang hndi nagigipit
    Mga demonyo

    I will furnish central bank all emails, text messages and harassment and intimidations directed to me

    Get a lawyer and file a complaint

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  4. Hello po atty.
    Dating ofw ako kaya lang umuwi ako sa pinas for personal reason may utang ako sa asialink 2months na delay yong bayad ako binigyan nila ako ng palugit till now lng 25 kaya lang ng tumawag sila humingi ako ng another 4 days kasi wla pa talaga ako pera at yong mgpapadala sa akin s 28 pa nla ipapadala kaya lng ayaw pumayag ng agent na kausap ko dami pang sinabi ipablock dw ako s NBI. tpus sinabihan pa ako ang kapal ng mukha ko kc d ako nagbabayad ng utang binubulyawan nya talaga ako sa phone na masama ugali ko ilang ulit pa akong sinigawan na makapal ang mukha. Do i deserve this words? Pwede po ako maipablock nbi?
    Salamat po sa reply

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    1. Hindi ka pwede ipa block sa NBI. Ang nasa NBI list ay akusado na nahatulan na ng guilty verdict sa isang criminal proceeding. Ang utang ay hindi criminal offense sa Pinas. Sa katunayan, walang kulong sa taong hindi makabayad ng utang.

      Style lang yan ng asialink para pilitin ka magbayad. Remember this – hindi mo ikamamatay ang pag insulto sa iyo kahit na murahin ka pa. Tibayan mo lang ang loob mo. Pwede mo din gawin – pag sinigawan ka, sigawan mo din. Pag ininsulto ka, insultuhin mo din. Wala kang utang na loob sa asialink.

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  5. hi i received an sms po

    city prosecutor’s officer advisory : (my full name). your complaint party has a direct filling with an affidavit of complaint with sworn statement. attachment of evidence in the Prosecutors office. Expect our CIDG Camp Crame Warrant Section and Sheriff RT official to serve your bench warrant with writ of preliminary attachment (date). please call 09759755338 for inquiries, please be informed for your voluntary surrender to avoid commotion at your place Fiscal Ramon Santiago. Prosecutors office of manila.

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    1. @pammy

      The prosecutor’s office, wherever they are located, will not send their notice by sms. Panakot lang ang tinanggap mo. Scam lang yan. Huwag ka tumawag sa number binigay sau.

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  6. hi mr. warrior ask ko lang po kasi ako po ay may loan sa DIB at sa credit card di ko na po sya nbabayaran at nagpasya dto nlng ako sa pinas kaso gusto po bumalik ng asawa ko sa dubai pede din ba sya makasuhan or ma blacklisted?

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    1. @jeffrey,

      Ok lang bumalik si misis sa dubai. Walang kaso sa kanya dahil lang sa utang mo sa DIB at credit card.

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  7. hi po, 2012 nun nagstop ako magbayad sa cc ko from Allied Bank, that yr din po kc ako nagresign sa work at jobless/full time mother of 2 na ako ngayon tapos nitong dec.2016 until now nakakareceive po ako ng letter from law firm at magdedemanda daw sila on behalf sa client nila dahil sa utang ko sa cc ng PNB. PNB daw pp ako may utang pero wala ako cc sa pnb, dahil po b nagmerge sila ni Allied Bank at may savings account ako sa PNB kaya naungkat un utang ko sa allied bank? plan ko po magabroad worried ako baka harangin or i-hold nila ako at makasuhan ako.thank you po in advance

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  8. METROPOLITAN TRIAL COURT:
    MR.MY FULL NAME,
    Expect our Official Commo to Issue your COURT ORDER (Bench Warrant) Exactly 4pm MONDAY (May 22, 2017) together with SHERIFF, NBI & CIDG to Issue Writ of Preliminary Attachment to Garnish your Real & Personal Property at your given address Residential/Commercial
    Pls. be inform for your voluntary surrender to avoid commotion at your area.
    – ALBERTO AZARCON/ INCUMBENT BR.63
    MTC Makati

    is this legitimate or nananakot lang.? Salamat sa makakapagadvice.

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  9. METROPOLITAN TRIAL COURT:
    MR.RYAN GENSOLI JARDINICO,
    Expect our Official Commo to Issue your COURT ORDER (Bench Warrant) Exactly 4pm MONDAY (May 22, 2017) together with SHERIFF, NBI & CIDG to Issue Writ of Preliminary Attachment to Garnish your Real & Personal Property at your given address Residential/Commercial
    Pls. be inform for your voluntary surrender to avoid commotion at your area.
    – ALBERTO AZARCON/ INCUMBENT BR.63
    MTC Makati

    Sinu po may experience.. hoping for feedback..

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      1. @randy

        panakot lang yan. ang mg korte ay hindi nagpapadala ng notice via sms. nakakatawa full force talaga nbi at cidg para kang terrorist, armed and dangerous!

        una sa lahat walang nakukulong sa utang. pangalawa sa criminal case lang pwedeng makapag-issue ng arrest warrant. if indeed a criminal case was filed, dapat nakareceive ka ng subpoena mula sa court with the attached complaint-affidavit and its attachments.

        ireport mo ito sa NBI, dun sa court na ginamit, at sa BSP for unfair collection practices.

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