Credit Card Debt Collection Practices Considered Unfair Under BSP Regulations

[ong76win2]

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I am not saying that we should not pay our debts and obligations. Debt is debt. We should face it. There are times that we are in a tight position because of plenty of other obligations and debts. We can ask our credit card/ Bank to restructure our debts. But based on reality, there are unscrupulous debt collecting agencies who violate these rules and regulations day to day. I just want to share this so all of us so we would aware of the rules and regulations for credit card debt collection. Hope this helps.

Credit Card Debt Collection Practices Considered Unfair Under BSP Regulations
01.13.2011

Do you know that there are existing regulations that are meant to provide for credit card debt collection methods that are reasonable and legally permissible?

Do you know that credit card issuers and their collection agents should observe good faith and refrain from engaging in unscrupulous or untoward acts, to the extent of harassing and humiliating the credit card holder?

For the information of the public, existing Bangko Sentral ng Pilipinas regulations prohibit credit card issuers and their collection agents from engaging in the following instances of unfair collection practices:

•*The use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person;

•*The use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;

•*Disclosure of the names of credit cardholders who allegedly refuse to pay debts;

•*Threat to take any action that cannot legally be taken;

•*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;

•*Any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder; and

•*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.

FOR FURTHER CLARIFICATION AND INQUIRIES, PLEASE CONTACT:
FINANCIAL CONSUMER AFFAIRS GROUP
Supervision and Examination Sector
BANGKO SENTRAL NG PILIPINAS
5th Floor, Multi-Storey Building, BSP Complex
A. Mabini St., Malate, Manila
E-mail address: consumeraffairs@bsp.gov.ph
Tel. Nos.: Direct Line: (+632)523-3631• Trunkline (+632)524-7011 local 2584

Source: Bangko Sentral ng Pilipinas - Publications and Research

Please share your opinions and reactions. Thank you

[ong76win2]

Credit card users urged to report abusive collectors
01/24/2011 | 07:11 PM

The Bangko Sentral ng Pilipinas (BSP) is building a database of consumer complaints against credit card firms that are unfair and unreasonable.

This move forms part of the central bank's continuing program to uphold consumer rights and make credit card firms accountable for their abusive and unfair behavior, BSP Gov. Amando Tetangco Jr. said in an interview Monday.

The central bank pointed out that some credit card firms are behaving in abusive and unfair manner, sometimes intimidating cardholders with legal or physical threats for not paying on time.

Behavior like this will no longer be tolerated, Tetangco said.

He said consumers should report the alleged infractions of collecting agents to the central bank, or nothing will happen to the incident "because we cannot be a party to something we do not know about."

"A formal complaint to our financial consumer affairs group is needed before we can act. Otherwise, we are not an interested party to the issue," Tetangco said.

Tetangco said that credit card issuers often engage in third-party entities to do the collection for them.

"These are outsourced arrangements. We can always recall the prior approval to undertake the outsourcing should they become abusive," he said.

Having a database of infractions, every consumer complaint reaching the central bank comes in handy, Tetangco said.

The BSP recently passed a set of credit card reforms in the wake of consumer complaints over exorbitant credit card charges that prompted a knee-jerk reaction from legislators who wanted to put a cap on interest rates.

Some reforms pertain to collection practices that include the mandatory period before a delinquent account is passed onto a collection agency and the need for the collection agency to inform the cardholder it is now handling the account. — JE, GMANews.TV

Source: Credit card users urged to report abusive collectors - Business - GMA News Online - Latest Philippine News

[ong76win2]

Bill protecting consumers, credit card firms moves to plenary
04/07/2011 | 05:12 PM

Consumers may soon be able to grasp how much interest and other financial charges would accrue to their credit card bills should they decide to pay only a portion of their total monthly obligations, the House Committee on Banks and Financial Intermediaries said in a statement Thursday.

The committee has approved for plenary discussions a bill amending the disclosure requirements of credit card companies under Republic Act 8484 or the Access Devices Regulation Act of 1998.

“The bill seeks to support and establish fair and sound consumer credit practices between consumers and credit card companies. A consumer that is sufficiently informed will be able to manage his finances well and avoid overspending and being charged of a huge debt," said Pasig City Representative Roman Romulo, who authored the bill.

The measure also seeks to protect companies from doubts of overcharging as they have fully disclosed the penalties and charges to be paid by the credit card holder, Romulo said.

“This would also result in a more disciplined credit card user which would minimize the risk of credit card company losses… [from] unpaid bills," Romulo said.

The repayment information will spell out the number of months it would take to pay the entire amount of the balance if the consumer pays only the minimum monthly payments and if no further advances are made.

According to the measure, the information should also include the amount of monthly payments to eliminate the outstanding balance in 36 months that encompasses the total cost of financing the revolving credit card dues including interest and charges for the three years.

Earlier, Belinda Caraan of the Financial Consumers Affairs Group of the Bangko Sentral ng Pilipinas (BSP) said she supports the proposed measure as most of its provisions were also incorporated in the Circular that the BSP issued in December 2010. Some of the provisions in the central bank circular took effect last January 2011, while some will be implemented this May.

However, Caraan also cited a concern involving sanctions on credit card issuers as some — being non-subsidiaries of banks — fall outside the ambit of BSP regulations,.

Simon Calasanz, President of the Credit Card Association of the Philippines, asked the committee to extend the number of days in formulating the implementing rules and regulations to 180 days from 90 days as stated in the bill to give them ample time to amend the system. — VS, GMA News

Source: Bill protecting consumers, credit card firms moves to plenary - Business - GMA News Online - Latest Philippine News

[ong76win2]

Please share your opinions and reactions. Thank you

[medjz]

naa unta ni sa una pa. bana saku ofismate before kay pakauwawan jud through fax ipadala sa ofis iya bana.. as in ang uban below d belt na jud. binisaya pang daku ang ipangsuwat... paksit lage kay naa may gitxt nga hulga2, aw gi pablotter sa ako ofism8, hilom lage ang collector. hehehe

we should pay our debts man jud. spend wisely pud. :B

[shebacs]

Sure na ni nga law? Akong sis naay manawag very early in the morning, bisan ok tanan ang cc statements nya. magtagalog-tagalog ra ba dayon ang caller bisan bisdak og accent.

[ong76win2]

Sure na ni nga law? Akong sis naay manawag very early in the morning, bisan ok tanan ang cc statements nya. magtagalog-tagalog ra ba dayon ang caller bisan bisdak og accent.

This is the rules and regulations of Banco Sentral Ng Pilipinas (BSP). Unsa man iya e-sulti? Mag harrass or hulga sa imu sister?

[endlessknight]

I heard most of these debt collectors aren't even employees of the bank itself, merely third party agencies. Any truths to this?

[entz_fire]

walay na priso sa utang kung gusto takasan, pero reponsibilidad man sa card holder so bayad gyod at any posible option they can arrange payment terms like monthly terms for two years kanang kaya rapod.

[ong76win2]

I heard most of these debt collectors aren't even employees of the bank itself, merely third party agencies. Any truths to this?

Yah. Third party collector agency and sometimes law firms. Most of them are very "bastos" but to be fiar there are others who are also sensitive to the clients.

There are times we don't want to pay our outstanding obligations with our card because of these "bastos" collection agencies.