Credit cards and unfair collection practices

There are a number of good reasons in favor of having and using a credit card. 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.

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. 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.

(Full text of BSP Circular 454, series of 2004. Related article and discussions at Atty-at-Work.)

110 thoughts on “Credit cards and unfair collection practices

  1. rbnstr08

    What action can credit card companies or collection agencies take, if they could not contact or communicate with the credit card holder with over-the-limit credit, for a period of 60 days or more?


    hi! im one of the million credit card users that became delinquent.

    ask ko lang po on what to do with collection agents?
    there’s this janet from enzi corp that once told me, “kapal ng mukha mo”, tama po ba yun? i know naman po my dues but syempre ndi naman po ata tamang ganun sila magsalita. may isa pa po, EASTWEST bank naman po, a letter from a certain “Atty. Virgilio Pablo” was faxed here in our office, 5 times. para mapahiya ako sa mga officemates ko, tama po ba yun?

    please advice.


    1. April

      sa akin naman sa dubai ko na utang. di na kasi ako nakabalik ng dubai at di ko kaya bayaran un. ngaun andito na ako sa pinas. currently naka indefinte leave ako. tumawag sa akin kasama ko sa work. sabi may tumawag at gusto kausapin president ng company para sabihin na may pending criminal case daw ako. tama ba yon? nakakatakot na talaga…… may habol pa ba sila sa akin kahit na sa dubai ko un na utang? pa help naman po. thanks

      1. johnny

        another style ng harassment lang yan. do you think the president of your company would entertain this person? and assuming the person will be entertained by the president, is the person brave enough to show documents or proof that you have criminal case? for sure, wala syang maipapakita. At ano naman ang kinalaman ng president ng company sa personal mong utang? if there’s a case no. na nakalagay, all you have to do is to verify its veracity and authenticity. utang sa credit card…..criminal case na kagad? ayos ah.

  3. chet

    i am unable to pay my credit card dues for almost 4 mos.then a law firm has called me to settle it or else they will file a case on the court. my total due based on the latest statement was P56,000. but the law firm told me that my total due is 105,000 including the legal fees and that they make arrangement with the bank to adjust my total due to only P89,000. They send a police to my house to inform me of my debt which almost make my parents got a heart attack since my father was high blood. what’s the better thing should i do to stop this collecting agent.

    1. shilee

      hello po chet .. ask qlng po kung anu na po
      naging status nyo po sa credit card na nd nabayaran.. ganyan dn po kc naeexperience q naun.. thank you

      1. sheshi

        hi same here,at sobrang kulit , binabayaran ko naman bawat sahuran kahit papanu pero ang gusto ng agent bayaran ung malaking amount agad kasi daw promo daw ni banko, leche sila. MR.MARIO OCAMPO

      2. MALASAKIT

        posible sa legal dept. na po kung ganyan na mangharas pero my mga solution nmn po yan kausapin ninyo yung mga collection office ng bank and sabihin ninyo na sa wala sa rules ng mga bank yan at pwd ninyo sila kasuhan mananalo pa kayo kasi daming nilabag na batas ang ganyang pananakot pero kylangan pakita ninyo na willing kayo mag settle para pabor sa inyo i’m a collection agent pero hnd ko na lang sasabihin yung company ko po

        1. Nate

          What if under amnesty program tapos may pinirmahan, 3 months na ang matatapos na kaya lang nagkaemergency.. Sabi nila naendorse na daw sa law office an dneed to settle na whole amount. Thanks

  4. silencio

    it is high time that all victims of credit card companies as well as those pretending to be collection agents should act as one and file a lawsuit against these companies and these collecting agents who keeps on harrassing us and saying bad words.
    They maligned and humiliated us.
    It’s not fair!!!

  5. Javis2010

    I have the same problem with the other blogers. I was not able to pay my credit card since last APRIL 2010. But I have a clean intention of paying them all.

    Ayoko ko lang na dumating kami sa punto na binabastos na ako ng colleting Agent and they send plain clothes “Policemen” in my house.

    Ask ko lang po ang legal opinion ninyo kung anong best remedy sa lumulobo ko ng account sa Credit Card.

    Magbabayad naman po ako pero sa takdang panahon kung nakakaluwag na. Salamat

  6. bordenmarvin

    hi po.
    I also have a problem with regards to my credit card.i was not able to pay it kasi nagipit lang talaga.there somebody from a law firm who call and saying that if i cannot pay the amount they are going to file a case against me…tanong ko lang po kung makukulong po ba ako nito?natatakot po ako baka makulong ako..

    please i need your advice po.hindi na po ako makatulog dahil dito.

    1. Maria

      Nope. Ako nga person of interest ng nbi dw. Eh sa dinami ng drug lord ako pa alam nila kng saan ako ngwowork.puntahan dw nila aq pero ayaw ng gulo. Wala nmn pumunta.

  7. shineacosta17

    Credit card debt payments settlements are seems to be a biggest issues now a days though using credit cards are the best favorable decision but its debt collection process are surrounded by certain kinds of rules and regulations.

    1. JeNa

      Wala ngang nakukulong..try mo umutang sa lahat ng financing/loan company.banks kung ma approve ka pa ba? Pag katapos mo gamitin ang pera you should pay it because it is your obligation

  8. blackdiary

    If you dont want to be harassed by the collection agencies or firm, kailangan din natin ng open communications. Hindi advisable ang magtago.. I know that lahat ng cardholders claimed that they are not running away from their obligations, pero anong iisipin ng mga collection agencies kung laging wala tayo sa tinatawagan nilang line… im a cardholder also, if i change my number i automatically call the customer service to update my records… sometimes i became deliquent also, pero agad agad hinahanapan ko ng paraan na mabayaran even partially. i dont want na ma block yung name ko sa lahat ng bank… what if i need to make an emergency loan sa mga banko? wala na diba? as a credit card holder we must learn how to use the card properly… we know naman if we can pay it pa o hindi na… used our credit card properly… interest really occur especially if you are not paying… lets read their rules and regulation….

    to the collectors : all credit card holders are professional. you must learn how to deal properly… learn how to listen… explain ng maayos lahat ng dapat i explain… PROPERLY…

    Lesson : Dont get credit card….

  9. marsB86

    Credit card and unfair collection practices are the two side of one coin if one came to existence when another falls, therefore most of the credit card holders are liable to avoid these possibilities of bad debt, which reduce the issues of unfair collections.

  10. cyrel203

    hello, owned 4 credit cards and 1 loan in 1 bank. are they can force me to pay my dept knowing them that i am facing ovary failure? but they force me to pay for it and ensuring me that must pay the minimum due or else they will gave reports to pay the full amount, or actions they will make. this one thing cant sleep at night, there words, their threat which makes me weak in my condition… i always answer their calls, explaining to them honestly but they told me that my health is not reasonable not to pay them… and this particular card is insured, credit protect plus and other insurances. Do i must worry? since i have no intent to hide them or not to pay them…

    1. Maria

      Ako po 5 cards.puro threat lng po yan. Kaso, pulis… mga fake pulis po yan. Wala sa job des. Nila mangolekta ng utang ng cc.pero iba na po pg bank. Mga personal loan….

      Kahit hindi makatotohanan yang threat nila, nkakastress pa rin.

      Mas maganda pa ng kng umabot sa korte po yan ksi tatanungin ka kng mgkano kaya mo bayaran buwan2x..sabihin mo 500..wala clang mgagawa nyan. Kaya ayaw nila na my kaso.. magastos at npkamabagal..d pabor sa knila yan actually.

  11. cyrel203

    hello, owned 4 credit cards and 1 loan in 1 bank. are they can force me to pay my dept knowing them that i am facing ovary failure? they force me to pay for it and ensuring me that i must pay the minimum due or else they will gave reports to pay the full amount, or actions will make, if i failed to pay. this thing cant sleep me at night, there words, their threat which makes me weak in my condition… i always answer their calls, explaining to them honestly but they told me that my health is not reasonable not to pay them… and this particular card is insured, credit protect plus and other insurances. Do i must worry? since i have no intent to hide them or not to pay them…

  12. Josefina

    Hi,. i have 7 credit cards and i am in default payment for a month now. my credit card has an outstanding TOTAL credit balances as follows;
    1) Php300k
    2) Php300K
    3) Php194k
    4) Php105K
    5) Php55k
    6) Php45K
    7) Php27K
    I have a personal loan with a monthly payment of Php28,500.00 .

    I used all the money for my children school needs , tuition fees.
    My 2 children who already finishes college education gave me since Sept. 2014 amount of Php23K per month.

    Can I defend myself in court that I can’t pay my cards now? I would like to finish first my loans in which I issue a PDC.
    Kindly enlighten me.
    Thank you!

    1. Maria

      Importante po ung personal loan mabayaran… ung credit cards meron nmn cla na payment arrangement… pero before u pay, cguro mas mainam if u investigare or consult a lawyer kng legit ba clang firm. Kasi ive heard na may iba na ngbayad cla… tpos may naniningil pa rin. Cla na dw ung totoong law firm or collecting agaencies. Cguro hingi ka ng clearance kng mababyaran ka. I dont know… pero alam ko maraming manloloko din po. If mg sesettle po kayo kelangan po siguraduhin nyo muna.

      Wala nmn nakulong sa cc debt pero mabubwisit ka lng habang buhay…

      1. Fred

        Must have copy of endorsement from bank to collecting agency
        RA 10870
        Section 21. Endorsement of Credit Card Debt Collection by the Credit Card Issuer to a Collection Agency.— A credit card issuer shall inform its cardholder in writing of the endorsement of the collection of the account to a collection agency, or the endorsement of the account from one collection agency to another, prior to the actual endorsement. The notification shall include the full name of the collection agency and its contact details. The requirement to notify a cardholder in writing about the endorsement of the account to the collection agency shall be included in the terms and conditions of the credit card agreement: Provided, That the credit card issuer shall refer the collection of an account to only one collection agency at any one time.

  13. sarah01

    Hi, i do have loan in AEON credit,mattapos na po aq at nsa last 3 months na po ang debt q sa knila, nag request po aq na i remove ung landline no.q sa details q kc everytime na tatawag cla dun hina highblood ung dalawang matanda, lolo at lola po ang andon,ni request q sa knila na sa mobile no.q nlng aq kntakin, pero thus january, na delay po aq paymt ng 5 days kc nsa bkasyon po aq, and then what they did us kinontact na nmn nila landline no.q at dinisclose ang utang q sa lola at di magabg term pa ang gnamit nila, respeto nmn po sa account holder ang hinihiling q.bakit cla nagdidisclose ng issue sa hndi acct holder, pde nmn cla snpleng mag leave nlng ng message or phone no. At since matatapos nq sa knila, which proved na di q cla tinatakbuhan, san po kya aq pde magreklamo sa gnawa nilang pamamahiya sa aken due to improper disclosure ng debt q sa knila? Thanks

    1. Charisma

      Grabe ang aeon ..ok lang maningil..pero bastos sila maningil..san kaya pwede magsumbong..imbes na gusto mo bayaran ay nakakabwisit dahil sa mga txt nila ng kung ano anu..

      1. benjie

        ako nakpghulog nko ng 5mnths sknila tpos ngyon mag 3mnts nko walang hulog dahil may mas kailangan akong unahin na bayaran. di ko din nsasagot tawag nila kasi bc aq s work. then this week nag msg sila skin na. mag pa file dw sila ng kaso under republic act no. 9510 .

      2. sheshi

        i can feel you, nkakabwisit talaga sila. They had yor info na, tapos na tanungin mo sila kung anu pangalan, they dont tell. Tang ina mga yan.

        1. epi

          Same here. I had to delay my payment kasi may mas need akong unahin, hindi naman sila tatakbuhan, nadelay lang. Pero kung ano ano ang mga pinagsasasabi. Paano po ba magreklamo sa ganyan. I am planning to pay my missed payment naman. Tsktsk.

          1. madison

            im a month late in paying my loan with aeon. akala ko they will charge me higher pero they just charged with 300 on top of my monthly bill. same sa inyo, financially stressed din kasi ako pero i made a negotiation earlier that i will pay today pero yun lang ang kayang bayaran, they gave way naman kasi this is my last payment naman with them.

  14. John


    Ako po ay may utang sa credit card na hindi ko nabayaran sa dahilang sobrang gipit ako sa panahong eto. Ang problema ko po ay nakatanggap ako ng summon galing sa Pasig Regional Trial Court noong October 2014 at binalewala ko po eto at hindi po ako pumunta sa korte dahil na rin sa mga advice ng mga kaibigan at mga nababasa kong articles sa ibang site. Ngayon pong January 2015 ay may tumawag sa opisina na pinagtatrabahuhan ko na isang superintendent sa camp crame at hinahanap ako subalit ng mga panahong iyon ay wala ako kaya ang manager ko ang kanyang kinausap. Ayon sa manager ko ang napag-usapan nila ng superintendent na eto na kung sakaling hindi ako makikipag-cooperate at tatawag sa kanila ay nagbanta na ipa-NBI nya ako at ipapatanggal sa aking trabaho at pupuntahan pa sa opisina na pinagtatrabahuhan ko na kasama ang NBI na may dalang warrant of arrest. Hindi po ako nagreturn call sa pulis na eto. Sa ngayon po pakiramdam ko ay parang pang-haharass ang ginawa nila sa akin. Hindi na ako makatulog at nahihiya na rin akong pumasok sa opisina.

    Ang mga tanong ko po ay:
    1. Tama po ba ang ginawa ng pulis?
    2. Sa hindi ko po ba pagsagot sa summon, tama po bang ang CIDG ang maghabol sa akin?
    2. Ano po ang dapat kong gawin ngayong hindi ako pumunta sa korte?
    3. Ano pong kaso ang maari nilang i-file sa akin sa hindi ko pagsipot sa summon? May mairerekomenda po ba kayong attorney para sa akin na bihasa sa mga ganetong kaso sa hindi pagbabayad ng credit card.

    Maraming salamat po at sana masagot po ang mga tanong ko.

    1. shy

      kung pulis tlga sila ay aarestohin ka dapat pinuntahan ka na nila personal at inaresto ka na.. indi yung tumatawag sila sayo.. indi ganun ang pag aresto.. ang pag-aresto at paghahanap ng mga pulis personal hindi tawag.. pede mo ireport mga iyan kasi malai giangawa nila.. once na pumunta sila sa hauz nyo o sa office at ang sabing police sila videohan mo sila habang sinasabi nilang mga police tpos hingan mo ng ID..
      or kpag tumwag at kaw nkasagot hingan mo ng ID no. nila tpos kung saan sila na police..

    2. Myles

      Pag civil case po.
      Hindi po warrant summons po at ang nagsserve p num process server

      Pag amg amount mg utang wala pa po 200 mtc lang po for small claims

    3. Maria

      Kalokohan po yang police. Ako nga person of interest. Ganun cla mg threat pra mapilitan at ma pressure ka… kalma lng po. Pambubwisit lng po cla. Un lng ang price to pay natin sa pagiging delinquent. Ung summon.. usually fake.. pero alam ko po ung totoo un mismo ung employee ng court mgpapadala. Or dapat ang letter head sa supreme court.. kng pangalan ng law firm tpoa ang ending ng letter if u want to settle call this number… aba fake malamang yan.ksi una pg may kaso ka na tlga d ka na mgsesettle yan. You can search din po sa net sa mga forums din po..

      Pg totoo ang summon mas pabor ata sayo un.. kaai tatanungin ka kng paano ka makakabayad at kng mgkano..kng sabihin isang libo o 500 , walang magagawa mga yan. Kaya ayaw nila ng kaso din. Lugi cla. Vla pa mgbabayad ng pg file ng kaso.

      I hope po na sana hindi ka ma depress… malalampasan mo po ito. Huwag po kayog matakot. If you want you can ask the court if may kaso nga na file sa inyo. You could check din pgkuha nyo ng nbi clearance..

      Malalampasan nyo rin po ito.

      1. Jose

        Hi Maria,

        Grabe sila saken mag papa BRGY pa nga daw. Tapos nag txt at hihinge daw sila ng tulong sa kap sa BRGY ni porvide din nial ang name ni Kap which is pwede naman i google.

        Nakaka stress sila

        Eastwest Bank

    4. johnny

      the first thing to do if you receive a summon or any document na nagsasabing may kaso kayo sa ganitong korte, is to verify the veracity and authenticity of the CASE NO.


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