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.)

119 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

    Reply
  2. Gomerciendo Tomas

    hi guys may nag email sakin ito yung email nila

    BAGUIO BRANCH
    ›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
    09166926728
    09189081638
    09328901267
    09065679849
    09394650242
    09999000779
    09065679956
    09328709010

    PAMPANGA BRANCH
    ›# 138 2nd Floor OHG Building, B Mendoza,
    Brgy. Sto. Rosario,
    San Fernando, Pampanga
    ( (045) 435-3044
    (045) 435-3045 09279508483
    09284600095
    09983892425
    09065533173
    09226835390
    09438596257
    CEBU BRANCH
    ›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
    09395173895
    09333031115
    09176438890
    09285949491
    09152713906
    09222856608

    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

    Reply
  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.

    Reply
  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!

    Reply
  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!

    Reply

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