by: Atty. Ruben C. Talampas, Jr.
Note : The original title was changed because it seems facebook won’t accept the word credit card in the title ( assumption ko lang, I’m not sure though). Wala na ring photo/image kasi mukhang ayaw din ng facebook tanggapin.
May libre pong payong at bag. May popcorn pa. Waived pa po ang annual charge. Kuha na kayo Sir, Ma’am, quipped by the Credit Card Agent. Familiar lines especially to those mall-goers who experienced being persuaded to apply for a credit card.
At the outset, I want it clear that getting a credit card is not always a bad idea. There are known advantages of having a credit card like the convenience of cash less shopping. You may also save money because most of the credit card companies offer 0% interest rates aside from huge amount of discounts from their affiliate merchants. There are also perks in using a credit card like flying free using their credit card reward points! Another perk of having a credit card is it helps you build your credit score. Banks and lending institutions partly based the approval of loan application on good or high credit score. Paying your credit card bills on time and consistently will build and give you a better credit score.
Of course, there are also disadvantages, the biggest of which is that it encouraged you to spend money that you don’t have or in other words, credit card is blowing your budget. You will be also paying high interest rates for your balance due when you will not pay in full your current monthly bill. Another dilemma is when you become a victim of credit card fraud. Your credit card may be stolen physically or digitally thru internet or website and might be used by unscrupulous individuals to rack up debts.
A credit card is like a double edged sword, it can make your life easier but if not use properly may become a huge financial burden. If you decide to get or you already have one, these are some tips: don’t spend outside your budget; keep track of all your purchases; pay off your balance in full at the end of each month; and don’t loan your credit or give out your credit card information to anyone but reliable companies or websites.
Sa Pilipinas ba ay may batas na nag-reregulate sa credit card transactions? Yes. In July of 2016, Republic Act. No 10870 or “An Act Regulating The Philippine Credit Card Industry” was enacted into law. Also, just recently, on May 06, 2018, the Bangko Sentral ng Pilipinas issued Circular No. 1003, Series of 2018, the Guidelines or IRR of RA 10870.
What if despite of your diligence in handling your credit card transactions ay nalubog ka pa rin sa utang dahil sa mga di inaasahang pangyayari?
Ang karaniwang tanong – Makukulong ba ako dahil sa utang sa Credit Card? Walang nakukulong sa utang unless ito ay sinamahan ng fraud/swindling o pandaraya. Unpaid debt is considered a civil liability and not a criminal one, hence, you will not be imprisoned for not paying your credit card bills. (pero for heaven’s sake magbayad ka ng utang mo para hindi masira ang credit standing mo)
Ang kasunod na tanong – Tama ba na ang Credit Card Collection Agency ay mang-harass ng credit cardholder sa paniningil? Kahit anong oras ba ay puwede akong tawagan ng collection agency?
The BSP thru Circular 1003 issued the following guidelines in the manner of collection and use of third party collection agents:
“X320.17 Appropriate manner of collection and use of third party collection agents. Banks may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement: Provided that in the exercise of their right and performance of duties, they must observe good faith, reasonable conduct and proper decorum, and refrain from engaging in unscrupulous acts.
Banks may engage qualified third party service providers/collection agents for the purpose of assisting or rendering services in the administration of the credit card business, including recovery of unpaid obligations and enforcement of rights against the cardholder:xxx
A bank or its service provider/collection agent may communicate with a credit cardholder in connection with the collection of any debt through acceptable and reasonable modes. They shall not harass, abuse or oppress any cardholder or any person, or engage in any unfair practices in the collection of credit card debt.
The following activities are considered as guidelines and are not irrebutably presumed to be unfair collection practices. Conversely, not all practices which might under the circumstances be termed unfair are mentioned here. The Monetary Board may now and then consider any other acts/omissions as unfair collection practices:
a. The use or threat of violence or other criminal means to harm a person, or his/her reputation or property;
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, except as allowed under Subsection X320.12;
d. Threat to take any action that cannot legally be taken;
e. Communicating or threatening to communicate to any person or entity, 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; and
g. Making contact at unreasonable/inconvenient hours, defined as contact before 6:00 A.M. or after 10:00 P.M., unless the cardholder has given express permission, or said times are the only reasonable or convenient opportunities for contact.
Banks shall inform their cardholder in writing of the endorsement of the collection of his/her account to a collection agency agent, or the endorsement of the account from one (1) collection agency/agent to another, at least seven (7) business days prior to the actual endorsement. The notification shall include the full name of the collection agency and its contact details. The requirement to notify in writing shall be included in the terms and conditions of the credit card agreement: Provided, that the bank shall refer the collection of an account to only one collection agency/agent at any one time.
Banks shall adopt policies and procedures to ensure that personnel handling the collection of accounts, whether these are in-house collectors, or third-party collection agents, shall disclose his/her full name/true identity to the cardholders.
As a final note, I’m quoting Warren Buffett. He said: “The most important thing to do if you find yourself in a hole is to stop digging.”
*Credit Card in Filipino (Bansag na hango sa dinaranas ng mga may hawak nito tuwing dumarating ang Billing Statement) ctto-Pesosence-Pesopedia
