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. ms_mo

    Hello guys! Actually you can complain sa BSP regarding unfair practices of these collections agency.

    My actual experience naman was with Standard Chartered Credit Card. Somebody from their collecting agency came at the house. Since it was a weekday, I’m not at home. My dad talked to him and the guy told my dad that I have an outstanding loan amounting to almost P100k. Since sabi nga ng dad ko e asa office ako baka pwedeng iwan na lang ni collecting agent ang calling card nya. Walang credit card si agent so flyer ang iniwan. When I came home, my dad talked to me at nagalit. Actually, na high blood at eventually na-stroke which na survive naman nya. Thank God!

    I asked advises from lawyer-friends and they told me…wala silang karapatan to do that or i harass ako. They asked me makipag usap sa Standard Chartered to negotiate. I told the, how can I negotiate when I don’t even have a credit card, lalo na Standard Chartered. Hayun…nag complain ako sa BSP and I copied Standard Chartered in that letter. In fairness to BSP, they replied to my email in three days. Tpos after a week I received a letter from SC’s VP for Sales and Marketing, ata yun, apologizing for the incident.

    So yes, you may complain. I suggest you explore BSP’s website:

    1. Portia

      Thank you for sharing. My mom is experiencing the same thing with EastWest Bank. I have just sent a letter of complaint to BSP. Hopefully will have the same results as yours.

  2. sakura22

    Hello. Same case din ako. I own 3 cc from metrobank, eastwest and rcbc na may outstanding balance na P30k, P28k and P26k respectively. Honestly, I intend to pay my dues ang kaso lang yung kinikita ko kulang pa sa expenses ko daily because I am a single mom of two tapos nagsstart na silang mag aral. Before nakakapag bayad naman ako sa mga card ko kahit pa minimum binabayaran ko kaso dumating talaga yung time na sobrang gipit ko hindi ko na na-maintain ang pag babayad hanggang sa na-cancel at naging delinquent na daw ako. Inaavoid ko sila sa tawag sa office dahil sobrang stressed nako kakasagot at kakaulit ng paliwanag kung bakit hindi ko na nabayaran. Si metrobank naendorse na sa law firm daw at nagpadala na sila ng demand letter. The day na nagpadala sila ng letter yung messenger kinausap ako and sabi niya gusto daw ako makausap ng taga law firm nila. Sabi ki pwedeng sa ibang araw nalang dahil busy ako sa office. He insisted so i took the call. Yung babaeng nakausap ko grabe ang pananalita niya as in tumaas ang presyon ko sa kanya. Sabi ko alam mo bang harrassment yang ginagawa mo? The next day tumawag uli ang taga law firm pero this time malumanay na sila makipag usap. Next si rcbc, nag disclose siya ng amount na utang ko without my consent. Hindi ba violation yon dahil wala silang right na magdisclose ng info sa ibang tao? Help me please nababaliw nako sa mga agents na to.

  3. sakura22

    I just want to know kung may nakukulong ba talaga sa hindi pagbabayad ng card kasi sa mga nababasa ko sa forum ang sabi wala daw nakukulong. Ang process daw pag nag summon at hindi ka pumunta sa hearing, you will lose by default daw at ang magagawa lang daw ng judge ay tignan(?) ang mga assests mo. So kung hindi ka naman daw kasing yaman ni Bill Gates eh wala. So tapos na. Ganun ba talaga yon? Another is, I have a friend and 8 years ng hindi niya bayad yung card niya pero hindi naman siya inaresto?

  4. dee

    Hello po.
    This is a txt I received recently.
    Good day!

    Ms. (my name),
    Upon checking to our system no payment posted to your account. I would like to ask, do you still have plan to settle this or not? Before we proceed the Legal Action against you. How many times you promised to pay but still you failed to comply, don’t try our patience we are now coordinating our Legal Officer to visit your barangay to serve a Legal Notice. To avoid inconvenience make your payment Tomorrow before 1pm even as partial, if we have’nt received any update your account we will proceed as protocol.
    Your outstanding balance is Php378,580.78 under your account #5191490483554011.
    In good faith we will include your name in AMNESTY that will make your outstanding balance reduce into Php78,000.00.


    — The history behind this is I let an EX-good friend used my card to purchase 2 appliances (about 40k) and with my other card expenses, my total bill should be about 70k. Since at that time I was struggling with my finances, I couldn’t pay the minimum every month so my bill escalated to 200k. And to make the story short, I decided to stop paying because my bill kept escalating since I can’t afford to pay the very high minimum. And so every now and then I receive texts like that and threatened me with an estafa case, etc…

    Will they ever stop? And if I DO pay that 70k.. Is there like a receipt and will they stop harassing me after???

  5. kris

    Hi.. i agree na its our obligation to pay since we diff story why we unable to pay those accounts. Since last year medyo nag ka problem ako financially because of loan na ginamit to repair our house kaya nagamit ko yung card. While i am updated to my other Credit card meron akong card na hindi nababayaran coz of hight monthly minimum payment dahil ayaw nila i approve yung installment request ko coz im a minimum wage earner. Enzi corp is calling me to settle the account so nakipag usap ako. After i paid the amount he said and sabi tatawagan ako for payment arrangement, i waited for their call and i also called them but i cant reach them after 1 1/2 month they called me again.. and im afraid to talk to them kasi baka ganun nanaman yung mangyari.. i also got a trauma accepting their call because of harassment, i cried the whole day and after that im scared to answer their call. I even send letter request and other requirements they needed but they say hindi daw approve. They want us to pay but they also give us reason para hindi sila kausapin. Mali ba ako…

  6. Autumn

    I had a credit card with Allied Bank way back in 2009. I had an outstanding balance of around 14k. Eversince that time, no one from Allied contacted me. After 7 years, a certain Malou Eden from Enzi Corporation contacted me saying I have to pay 30k to PNB. I told her I will pay but not right now because my mom is sick with cancer and is undergoing chemotherapy. She insisted that I pay right away because the bank did not approve that I do not pay today. I told her that even if she comes to my house right now I have nothing to give her because I don’t have any money. I have just spent 30k the other day for my mom’s treatment. Bakit after this long, ngayon pa nila ako guguluhin at gusto nila agad agad kong babayaran. Napaka inconsiderate naman nila even after explaining my family’s financial status. Uunahin ko pa ba sila kesa sa health ng magulang ko?

    1. Girl

      Hi. I have the same issue. Pero Sillano Law office naman naghahabol. Tinatadtad nila ako ng calls sa office. And they won’t grant an amnesty. They want the full amount.

      1. rodel

        Being just a 3rd party collection agent,
        they don’t have any authority to grant
        you an amnesty. It is the sole authority
        of the credit card company to grant
        an amnesty, so therefore sa kanila kayo
        dapat dumirekta at hindi sa 3rd party
        collection agent. Ang interest lng nila ay
        ang makasingil in behalf of their client
        for a certain service fee or commission.
        In fact ayaw nga nila na ma grant kayo
        ng amnesty kasi mawawalan sila ng
        kita o percentage commission! To hell
        with them! Wag ka matatakot o
        kakabahan man lang! Kapag naram
        daman nila na matapang ka o
        palaban, for sure they’ll drop their
        intent to collect and pass it on to
        another collection agent! Lahat
        sila SCAM!

  7. Lyn

    Warrant and Subpoena section advisory: expect our official commo to come (bench warrant) at exactly 12pm tomorrow together with sheriff to issue writ of preliminary attachment to check your property. Please be informed for your voluntary surrender to avoid commotion call this mobile alert # and look for P/SSupt.Manuel Lukban Jr.

    Yan ntnggp q from eastwest bank dhil d me nkbayd sa crd. Totoo ba to?

    1. Len

      Hindi ito totoo. Ang mga pulis ay may sinumpaang tungkulin na magbigay serbisyo sa publiko at hindi sa mga pribadong mamamayan o institusyon.
      Kung may tatawag o pupuntang pulis sainyo, kunin mo ang pangalan at ireklamo mo ng moonlighting. Maaari siya/silang mawala sa serbisyo dahil dito.

    2. JopV

      Ano po nangyari? Nakareceived din same call from CIDG un sister ko. Bakit warrant of arrest agad wala man lang subpoena?

  8. Cecilia

    I have a credit card with EastWest with a limit of P20k. I’ve already maxed it out and since I cannot afford to pay the whole amount I only pay the minimum required but I have never been a delinquent cardholder and always pay before the due date. I have not used my card for more than a year now and yet the minimum I need to pay increases every month. It just doesn’t make sense to me. You don’t use your card but you still pay more every month? I have tried to reach out to them and ask but they only give me vague answers. I also have also experienced one time to be told that I shouldn’t complain since I cannot pay the whole P20k. I need advise please on what I can do. I don’t mind just paying the monthly minimum amount but I don’t want them to get away with this. Is there anywhere I can make complaints about this?

  9. loreme

    Ako po 6 months hindi nkpagbayad ng cc kasi meron scam ung credit card ko worth 7k ng complain naman ako pero hindi ihonored ung complain sinabihan nila akong tumawag sa company kung san nggaling ung additional charges pero hindi macontact but !st i tried to pay it. but later on, na notice ko na interest lang binabayaran ko kada bwan. kaya tiningil ko na ang pagbabayad,
    Ngayon po hinhanap nila ako, ganun din po tumawag na taga camp crame, sabi din Police inspector siya magpapadala din daw sila kinumagahan ng search warrant sa company at hangang ngayon takot na takot ako kung anu ang mangyayari sa akin oras na pinuntahan nila ako dito.

    1. BSM ADM

      Hi loreme,

      so did the police ever came? my friend received a call from a certain Major Joselita Brioso of CIDG Camp Crame yesterday. A case was filed daw by Atty. Dexter Coloso at QC Regional Trial Court. Sabi may order na daw sila na puntahan ang officemate ko tomorrow if hindi sya mag coordinate. turned out na si Atty. Coloso is a collection office ng Eastwest bank…unpaid credit card due lang pala. Kasong Civil at Criminal Case na daw ang nakasampa sa officemate ko.

      how true is it that these so called CIDG policemen will really arrest or visit yung taong may credit card balance? isn’t this just a threat and unfair collection practices? can the client file naman a case of harassment against the law firm and the CIDG police?

      1. skghlw

        Hey I’ve been contacted by a certain Atty Dexter Coloso, but this time he’s saying that he directly works for the executive office of PNB. What’s the true story?

  10. Aridingding

    In my case ung sis ko namn ang nagkautang at d nabyaran sa cc nya. One day pumasok sya sa work at naiwan ang cp nya. Tumawag ang tga Eastwest legal daw. Tapos sinagot ko sabi ko tumawag na lang ulit pagka dating ng sis ko besides office hours un bawal tumawag pagka ganun dba? Minura ako nung agent, sabi wag na daw ako magtago or mag pretend. Pinagpipilitan nya na ako daw talaga ung sis ko eh sabi ko na hindi nga ako. Tapos inisulto na nya ako ang dami na nyang sinbi. Umabot pa sa point na ininsulto na nya ako physically kahit hndi pa nya ako nakita. Sinabihan ko sya na magpaka professional naman sna wag ung basta2x na lang mang insulto sa hndi nya kilala. Nanginginig ako sa galit sa baklang un muntik ko na masugod sa office nya. Pwede dn ba silang ma reklamo pagka ganun? Problema lang kasi hndi naman sure kung totoo ang address na sinasabi nila.

  11. xy23

    Today my pumuntang pulis sa bahay, tlagang pulis xa n tga smin kc kilala q, pinapaconfirm dw nung pulis n taga taguig kung dun p q nktira s bahay nmin, tpos my pinapatawagan skng atty. Rodolfo Biasca 355-1028 kc my nagcocomplain dw skn n Alexander Ngala regarding s properties.. e s pgkakaalam q wla nmn aqng kht anong properties kc nkikitira lng aq s magulang q. s pagkakaalam q credit card lng ang nang gigipit ng ganun at yun lng nmn ang pwede qng mging atraso s mga pulis.. pls help.. what would I do?

  12. Ayoh

    Hi everyone same situation sabi ko sa agent im willing to pay naman 24mos. Kaso ayaw nila pumayag nakakaloka… Ano dapat gawin can i call direct sa eastwest bank??

  13. Rita

    Just a while ago…may tumawag dto s office,…n trace nila ang new work ko..from Cases Collection Mgt, may nka experience na ba dito s collection agency na ito? Thanks

  14. Rby


    May question lang po ako. Pwede po bang i-hold ng isang bangko ang payroll ng isang cardholder na hindi nakabayad ng past due amount? Credit Card and payroll account is with the same bank. Please help.

  15. Elio

    Sa aeon nman po sakin . wala pa namang isang buwan na hnd ako nakakahulog pero tumawag sila sa frnd ko at sabi 3mos na daw hnd ako nag huhulog . tpos dinosclosed nila lahat . tama po ba yung ginawa nila . pati yung tita ko at mother ko mga family member ko hinahanap nakakawalang gananang bayaran . parang gusto ko na ngalang mag harap harap kami sa korte .kasi wala pang 10k utang ko sa knila . grabe na sila maningil .ggwa pa sila ng kwento . na bbwebwesit din ako sakanila nag palit nga ako ng number parahnd nila ako ma contact .


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