2 Negotiable Instruments Law for Atty.

Caldona by Jason Arteche

BPI Express Card Corporation vs. CA

Facts
Marasigan (complainant) is a credit card holder of BPI Corp. Marasigan had overdue accounts with
BPI and the latter demanded payment otherwise Marasigan’s credit card will be cancelled. Marasigan
sent a check to BPI Corp. to settle his account. However, the bank still cancelled his credit card and
sent a letter informing Marasigan of such cancellation and demanding payment. Marasigan didn’t
receive the letter and believing his credit card was good to go, used it at a restaurant. The restaurant
rejected the credit card and Marasigan suffered embarrassment as a result.

Marasigan sent a demand letter to BPI Corp. demanding an explanation for why his credit card was
cancelled and informed it that he was canceling the check he earlier sent. BPI Corp. countered with a
demand for Marasigan to settle his account. Marasigan then filed suit for the embarrassment he
suffered from the cancelled credit card.

Issue
Was BPI Corp. justified in suspending Marasigan’s credit card?

Held
Yes.

Prior to BPI suspending Marasigan’s credit card both parties entered into an agreement with the latter
providing immediate payment of his outstanding account to prevent his credit card’s cancellation.

However, Marasigan failed to comply with his obligation by sending a check as payment. A check is
only substitute for money and not money, the delivery of which doesn’t by itself operate as payment.

Further, the check was postdated and consequently can’t be considered ‘immediate’ payment.

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