Credit Cards and Unfair Collection Practices in the Philippines

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.”

Credit Cards and Unfair Collection Practices in the Philippines

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.

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, including those enumerated above.


166 thoughts on “Credit Cards and Unfair Collection Practices in the Philippines

  1. Avatarrbnstr08

    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. AvatarApril

      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

    2. Avatarjohnny

      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. Avatarchet

    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. Avatarshilee

      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

    2. Avatarjohnny

      at ano naman ang kinalaman ng police sa utang mo? wag ka maniwala dyan, panakot lang nila yan.

    3. Avatarsheshi

      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

    4. AvatarMALASAKIT

      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

    5. AvatarNate

      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. Avatarsilencio

    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. AvatarJavis2010

    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. Avatarbordenmarvin

    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. AvatarMaria

      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. Avatarshineacosta17

    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. AvatarJeNa

      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. Avatarblackdiary

    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….

    1. AvatarJeNa

      You feel harrased? Why when u already use the money and enjoy it.? Ofcourse utang yan so you need to pay

  9. Avatarcyrel203

    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. AvatarMaria

      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.

    2. AvatarBarurot

      Maria kung yan po ang prinsipyo mo mas magkakaproblema ka dahil pag sila ang nagrequest ng garnishment ng bank account mas magkakaproblema ka dahil malilimas ang laman ng bank account mo base lang naman sa naexperience ko. I have 3 CC kaya malaki din ang nawala sakin para mabayaran ko ng buo.

    3. AvatarJuan

      pag umabot po sa small claims court wala po atty. involve just palintiff and defendant po and judge, pag di ka po sumipot judge na magdecision, kung magkano ang utang mo ayon sa plaintiff iyon ang babayaran mo pero 1% per annum, pay when able until the day you die. kaya po di sila na file ng kaso basta basta, pero ang alam ko BPI and Citibank nag pa file talaga sila ng lawsuit.

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