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.)

132 thoughts on “Credit cards and unfair collection practices

  1. Star

    Hello! Like many of you, hindi ako nakapagbayad sa eastwest, 2014 pa yun sad to say. I went abroad and plan ko sya talaga bayaran, ipadala sa friend ko at sya magbayad sa bank. Pero nahirapan akong makahanap ng work kasi nagtourist lang ako. May nahanap ako pero ambaba ng sahod ko hanggang sa nawala na sa isip ko. Last year march nasa dubai ako may tumawag daw sa brgy captain namin saying may pending estafa case ako sa NCRPO. Pero nung nagpunta lawyer father ko at police station to coordinate bigla nalang di sumagot tawag. Then just yesterday, someone called naman taga DILG naman and nagbigay certain name ng atty. at number na need ko daw tawagan kasi may case ako naka-file sa
    Banko sentral. At married name ko na ang ginamit knowing i just got married 2016. Now im in doubt kung collection company ba ito or scam? Ganyan ba maningil mga debt collector, hindi masabi ng diretso na sinisingil ka? Need your opinions…thank you

  2. Gomerciendo Tomas

    hi guys may nag email sakin ito yung email nila

    ›108 Baguio Health Department Compound T-Alonzo St Baguio City
    ( (074) 422-4632
    (074) 424-4233
    (02) 542-8347
    (074) 442-0096
    (074) 619-3278

    ›# 138 2nd Floor OHG Building, B Mendoza,
    Brgy. Sto. Rosario,
    San Fernando, Pampanga
    ( (045) 435-3044
    (045) 435-3045 09279508483
    ›2nd Floor Room 5B, Advent Business Center, Acacia St., Camputhaw Lahug, Cebu City, 6000 ( (032) 231-4760
    (032) 231-4761
    (032) 253-0313
    (032) 254-2256
    telefax 032-238-6774

    June 5, 2017

    RE: Maybank Final Demand

    Dear Sir / Madam

    We are now under strict instruction by our client, Maybank., to resort to all legal means available to effect collection of your overdue and unpaid credit card under card number VISA CARD 4575910000126752 which as of June 5, 2017, amounts to Twenty-Three Thousand Nine Hundred Eight Pesos & 18/100 (Php 23,908.18) inclusive of interest and other charges.

    For your consideration and guidance, the repeated demands you received for the settlement of your overdue obligation have been unreasonably disregarded; hence, we have finally decided to file on court.

    Be it noted that, in the event the complaint is filed, the court, on the basis of our prayer in the complaint, may issue a writ of preliminary attachment and order the court sheriff to preliminarily, levy, attach or seize your real and/or personal properties. Parenthetically, we may likewise garnish your salaries and/or bank deposits not to mention the legal consequences of the expected favorable court decision; and, should it become final and executory, the levy, attachment, seizure and/or garnishment, may become permanent. Moreover we will include your name in the blacklist of Credit Management Associate of the Philippines and Bankers Associate of the Philippines, which will prevent you from securing loans or credit lines from banking institutions.

    Should you wish to settle, pay immediately and call (02) 636-7958; (02) 667-3484; (02) 631-0479; (02) 636-4597; 09985824715; 09985824716; 09178104158; 09178104261 and look for our collection officer: Mr./Ms. DARYL FRIAS. However, if we did not hear from you three (3) days from receipt of this letter, we shall be, much to our regret, constrained to file in court the necessary legal actions against you without further notice to protect the interest of our client.

    We trust that you shall give this matter your utmost preferential attention

    Very Truly Yours,
    mypysign clear Sincerely,

    Atty. Michael Yancy P. Yngson, CPA, LLM

  3. DARIO

    Question: Regarding my Allied/PNB Credit Card. Last year i was not able to pay due to the closure of my business. Last November 2016 i received eSOA with a Balance of P433,013.40 at may tumatawag na to fully pay my unpaid Balance, ang sabi ko wait ko nalang ang Amnesty kasi wala pa akong business at work. Last December 2016 I received another eSOA with a Balance of P1,700 CR so hindi ko napansin ang negative (-) sign kaya I ask my cousin to pay at P2,000 ang binayad nya. Last January 2017 I received another eSOA with a Balance of P3,700 CR. after that wala ng tumatawag at wala na ako natatangap na eSOA so I consider fully settled na po. Surprisingly ito last September 6, 2017 madami ng tumawag sakin using different number para maningil, manakot at pati FB Friends ko nagtatawagan kasi nakatangap sila ng message from Catherine Fernandez (fake acct) na pinapatawag ako sa isang law firm. So tinawagan ko doon ko nalaman na its about my Allied/PNB credit card pero ayaw nila ipakiusap yong Catherine Fernandez at since sinabi ko na wala akong matandaan na utang sa Allied/PNB kasi last January 2017 ay negative p3700 na. pinagsasalitaan ako ng hindi maganda at inaraw-araw na akong dinidisturbo ng calls from different numbers (almost 20sim). This morning may nag message na naman sa FB friend ko nag hindi na maganda at sinisiraan na ako sa Social Media when I check the FB Acct ni Michael Punzalan ay kagagawa lang din. Ano po ba ang dapat kung gagawin pls.

  4. lee

    Lahat yan underhanded tactics nila para mag bayad ka or mapapirma ng documents para sa small claims o pilitin ka mag issue ng checks para maging criminal case yun situation mo. Isipin mo kapwa pilipino ang nag down sayo kahit sabihin mo na nag tatrabaho sila hindi parin yun dahilan para lokohin at utuin ka nila para mapahamak, basta mag bayad nalang tayo ng kaya natin dahil mas pabor pa talaga na mag harap sa court dahil dun kasi kung ano lang kaya mo ibigay yun nalang puwede nila asahan na monthly na ibibigay mo kaya ayaw nila makarating yan sa court talaga kasi gumastos na sila sa lawyer at sa filing fee atpos ang ending 100 pesos a month lang kaya mo ang ending nun burden pa sa kanila yun nangyari nga sila yun nag labas ng pera imbis na kumita sila. Hindi ko po sinasabi na wag tayo mag bayad pero lahat tayo pag dadaanan ang mga bagay na ayaw natin at yun yung malaking utang na akala mo naitulong mo sa huli ikaw pala lolokohin, nararamdaman ko ang stress na pinag dadaanan niyo pero be strong at move on nalang tayo kasi hindi naman lagi tayo nasa ilalim ng gulong ng buhay. Huwag na po tayo mag credit card sa susunod cash nalang po, may mga promo naman diyan na installment na di kailangan ng credit card kaya makakabili pa din tayo ng appliances sa bahay. OO di na tayo makakautang sa bangko pero may mga tao naman na pumapayag ng direct rent to own na bahay, madami pa din makatao na pilipino yun iba nga lang nasilaw na sa pera at wala ng konsiensya. May utang din ako sa bangko tulad niyo pero kinakaya ko kasi alam ng mga kamag anak ko na naloko at inabuso lang naman tayo sa kabaitan natin. Kaya niyo lahat yan mga BES, hindi ibibigay satin ng dios ang problema na di natin kaya!

  5. Em

    They can be sanctioned under Republic Act (R.A.) No. 7653.

    Nakalagay jan ang sikretong bulok ng mga collection agency na magaling manakot para bayaran sila ng napakalaking halaga na puro interest lang. Akala mo sa kanila ka may utang.

    Document all harassment and humiliation na binigay sayo ng agent at ng company nila. Then file a complaint sa BSP, DTI and National Privacy Commission.

    Settle an agreement na kaya nyo ng hulugan kahit pa mejo magipit kayo. Now pag ayaw pumayag, tell them na ipa korte kayo at dun na kayo sa judge makikiusap sa amount na kayo nyo ibayad. Then present to the judge all your documents sa collection malpractice nila.

    I hope this helps!

  6. Raymundo

    Totoo po na may sheriff pag hindi nka bayad ng CC .. yun po ksi sbi sa amin ng nagpakilalang attorney.. and nasa barangay daw po sila at nasa police station.. gaano po katotoo na maari po kunin ang gamit namin ..pls reponse po salamat po..

  7. Catherine

    Ang dapat nating gawin mga kapatid ay kung ano ang kinuha natin yun din ang ibalik natin. Nakipagkasundo tayo sakanila nung pumirma tayo ng kontrata, gawin natin bayaran natin kung ano ang idinedemand nila. Meron namang mga amount past due na ipinapabayad lang satin e. Hindi naman totally buo na agad. Kasi unang una kung di ka nag apply sa mga bangko wala kang obligasyon na ganyan. At dapat nung ginusto natin kumuha ng credit card ay alam natin ang mga obligasyon na dapat kakarguhin natin. Ang gagaling natin kumaskas ng card pero pag bayaran na wala na. Inaabuso rin kasi natin ang kabaitan ng bangko e. Meron din akong card, pero hindi ako delinquente at hindi ako against sa terms and condition ng bangko. Kung alam kong wala akong ipapangbayad kapag kumaskas ako, hindi ko na ikakaskas. Ang satin kasi e, kaskas tayo ng kaskas para lang makapagyabang pero wala naman pala tayong pambayad kapag anjan na ang SOA.

    Tulad ng sinabi ko, may credit card din ako pero tama ang pagbabayad ko. Kapag alam kong wala akong pambayad e hindi ako kakaskas ng card. wag natin silang abusuhin mga kapatid.

    PS: No offend po. Sinabi ko lang kung ano yung opinion ko. hehhehe. Sana makatulong guys.
    PPS: Kung ano ang nakuha natin, ibalik natin ng tama.
    PPPS: Wag tayong magpaawa, kasi unang-una may kontrata yan at alam ko naintindihan natin yang kontratang pinirmahan natin.

  8. kaito

    Hello ask ko lang!!! Ksi ung kaptid ko nag apply sa Aeon,, nawalan kc sy trabho kaya nadedelay hulog nia,then ngpdala sila ng notice ,last September 29 2017 ,- ang amount ng dapat bayran is 9000 plus ,, then tumawg samin nung November ,, sabi 18000 ndaw need byaran ,,, Ganun ba agad klki interes non ,,??
    Nagbyad kmi that time!!!
    Tas tumawag this January ang ssbi ,,ngsampa ndw sila case at may warrant n dw, worth 14000 ,,padaw need byran tas gnwa nlg dw nila 9000
    Nakaklito na sila
    Tama po ba na kpag nag apply sa APPLIANCE LOAN,, AT DI NHHLUGAN ,,, KAKASUHAN???
    O babatakin lg ung APPLIANCE

  9. bishop

    sa lahat ng nakatanggap ng harassment sa mga collecting agency sa credit card ito ang dapat ninyong malaman, una walang nakukulong sa utang lalo na at nagbayad ka naman at wala kang balak na manloko, pangalawa wag kang matakot sa mga collecting agency trabaho lang nila ang manggil at mang harass lalo na at nakita nila na kaya ka nilang takutin at alam nilang mayibababayad ka,(kaya nga ka ng inilagay sa sitwasyon ito dahil wala kang pangbayad, pangatlo wagkang pipirma nang kahit ano sa collecting agency kahit promissory note dyan pwede ka makulong, just say pagnagkapera ka, babayaran mo sila kasama interest, pang apat , kung hindi mo talaga kayang bayaran ang credit card mo at palobo ng pa lobo lang interest, hanapin mo ang head office ng credit card mo at pumunta ka doon sa credit card section at makiusap ka na hindi mo na kayang bayaran at wala ka ng kakayahang bayaran ito at nais mo humingi ng tulong para mapababa o baka pwede mo na lang bayaran yung creadit mo ng wala ng interest, lahat g ito ay naranasan ko, at sa huli na ayos ko sa head office ng credit card a utang ko from 40.000 naging 250.000 lumaki dahil sa interest at naging honest lang ako sa banko, sa sitwasyon ko tinangal nila interest at naging 22,300 nalang payable in 2 months after ko ma settle ito binigyan nila ako bank certificate, huwag lang kayo padadala sa takot, at samahan ito ng dasal. sana naka tulong ito sa inyo.

    1. Nanie

      Thank you po for this comment, I wish sana po ma contact ko kayo in a more private manner, I would like to speak to you po kung papano yung process ng ganito? gusto ko po talaga mag settle kasi i know may responsibilidad din po, kaya lang wala talaga akong means to settle the full amount with interest and penalties.

  10. ems b

    I just wanted to share my experience sa credit cards ko. Dati madami ako credit cards and never ako nag missed ng bayad at nag minimum payment. Palagi kung ano ung full amount due bnbyadan ko cya agad. Pero dumadating pala tlga sa buhay ung magigipit ka. Sa case ko, pinagamit ko sa pinsan ko ang lahat ng cards ko para sa business nya..pero dumating yung time na ndi na cya mkabayad at nadelinquent ako sa cards ko. Sana yung mga nagcocomment na kesyo pag ginamit natin ay bayaran natin at wag tayong kaskas ng kaskas ay maging sensitive. Iba iba ang sitwasyon natin sa buhay. Imbes na makatulong ay lalong nakakadepressed yun. Sana lang wag kayo dumating sa point na maging katulad kayo ng mga taong humihingi dito ng advice. Wala nman taong gustong malubog sa utang. Nasettle ko na lahat ang 7 cards na naging delinquent ako. End of 2015 nagstart na masira ako sa cards ko at early 2017 ko cya nabayadan lahat. Lahat ng pinagdaanan yung panghaharass ay pinagdaanan ko din. 7 cards ba naman. Naging positive lang ako na malalampasan ko din lahat. Ganito po ang ginawa ko pra masettle ko lahat. Una tumawag ako diretso sa issuing bank ng credit card ko. Sila ang nagbigay sa akin kung sinong law office o collection agency na ang may hawak ng account ko. Then I called the law office and nakipag negotiate ako, up to 60% ang nabawas ko sa mga sinasabi nlang dapat kung bayaran. Pinaka ok kausap ang law office na naghandle ng hsbc card ko at ang eastwest bank ang pinakamahirap kausap. Take note na you should ask for a letter of agreement ng napag usapan nyo then saka lang kau magbabayad sa bank pag napirmahan nyo na both yung agreement. Keep all your payment slips. Kapag 1 time payment ka mas madali clang kausap. After 15 to 30 days isesend nila sau ang certificate of clearance o full payment mo. Nakakaluwag sa dibdib ang makasettle ng ganito. Lesson learned ko ang never trust anybody to use your card kahit kadugo mo pa yan. In the end pangalan mo pa din ang masisira.

  11. Juan

    If you can live without any credit card ever, don’t pay.
    First is to remove yourself from the net/online etc.
    Change your address, change work etc. You’ll be well off not paying. They can’t do you any physical harm… It’s only you harming yourself if you keep being ‘good’ to these suckers.

  12. Cyrille Ranz

    Ask ko lang po if personal loan same with credit card.. Delinquent ako for almost 4months to this loan and the collection agency always tell me that if i will not pay, they will file a case in the court. Nakiusap ako if pwede staggard payment since tlagang nagkaroon kmi ng financial problems pero lalaki daw ang interest..then they told me also pupuntahan ako sa work at s bahay kasama ang mga kagawad at chairman daw.


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