The key for you to avoid paying excessive finance charges, fees, and

penalties is to become a responsible cardholder by paying your bills on You may directly file a complaint with
frequently asked questions time. To avoid late payment fees and penalties, try to pay-off all outstanding
dues every billing cycle. Spending only within your means is of course the
surest way to avoid finance charges and continue to enjoy the use of your
the credit card issuer if you are a
victim of collection harassment
practices. The BSP, through
credit card. Subsection X320.15 of the
YES, but your credit card can be a very
MORB; Subsections 4301N.15
expensive form of credit if you pay just the
and 4320Q.15, MORNBFI
minimum amount due every billing cycle.
Can a cardholder’s bank deposits be used to “offset” protects consumers from unfair
Card issuers usually require a minimum
collection practices. It provides
payment of 5 percent of the oustanding unpaid amounts on his credit card? that subsidiary/affiliate credit
balance or a minimum of ₧500.00
card companies, collection agencies,
every billing cycle. For instance, a YES. A credit card issuer can offset a credit cardholder’s deposit with counsels and other agents may resort to
₧5,000.00 balance could mean a the former for any amount due and payable on the credit cardholder’s all reasonable and legally permissible means
minimum payment of ₧500.00. However, credit card account which have not yet been paid. Before an offset could to collect amounts due them under the credit card agreement
once you do so, the remaining balance of be made by the credit card issuer, the credit card issuer shall inform/ provided that in the exercise of their rights and performance of duties, they
your outstanding credit card obligation will then notify the credit cardholder in the agreement, contract or any equivalent must observe good faith and reasonable conduct and refrain from engaging in
be charged a “financing fee”. Assuming that said fee document governing the issuance or use of the credit card that the use of unscrupulous or untoward acts.
is 3.5 percent a month, this translates to a 42.0% annual interest rate. the credit card will subject his deposit(s) with the bank for possible offset.
Your overall goal should be to always pay-off your entire outstanding balance to Any offset should be made in accordance with the terms and conditions of If you find the bank’s reply/action unsatisfactory, you may also file a formal
enjoy the full benefits of owning a credit card at minimal cost to you. the agreement and contract. complaint with the Financial Consumer Protection Department (FCPD) - contact
details found at the reverse side, Supervision and Examination Sector, Bangko
[Subsection X320.13 of the Manual of Regulations for Banks (MORB); Sentral ng Pilipinas. FCPD will assist you by bringing your concerns to the
YES, but only after full payment of all fees, Subsections 4301N.13 and 4320Q.13, Manual of Regulations for Non-Bank attention of the bank/subsidiary credit card company.
charges, and liabilities outstanding Financial Institutions (MORNBFI)]
or incurred by the use of the Card,
including those not yet reflected in
YES. A cardholder who abandons or surreptitioulsy leaves the place of
the current Statement of Account/
Billing Statement.
Can credit card companies unilaterally suspend or employment, business or residence stated in his application or credit card,
terminate my credit card? without informing the credit card company o f
the place where he could actually be
If you are encountering problems
YES. Banks or their subsidiary credit card companies can revoke, suspend found may be liable. An intent to
managing your debt, we suggest that
or terminate the effectivity of the card, if circumstances warrant. Criteria or defraud will be presumed from
you take the following steps:
parameters of suspension, revocation, and reactivation of the right to use the use of the credit card if at
the card and the authority of the issuer to suspend or terminate the card’s the time of such abandonment
Contact your creditors immediately even before you default on your or surreptitious leaving, the
account and request to work out a payment plan that can help you effectivity should be included in their contract with cardholders.
outstanding and unpaid balance
reduce your payment to a manageable level within a specified period. is past due for at least ninety (90)
(Subsection X320.11 of the MORB; Subsections 4301N.11 and 4320Q.11,
MORNBFI on suspension, termination of effectivity, and reactivation) days and is more than Ten thousand
If you have debts from various cards, pay off those which charge higher pesos (₧10,000.00).*
interest rates first.
While no person shall be imprisoned for non-payment of debt,** the creditor
Transfer debts with high interest rates to cheaper alternatives. What is the procedure required of credit card may, depending on the circumstances, avail of other remedies against the debtor
companies in handling written complaints filed by such as filing of a civil case for collection of sum of money.
Reduce credit card purchases and, as much as possible, avoid cash
advances. credit cardholder?
*(Under Section 14 of R.A. No. 8484 known as the Access Devices Regulation Act
Cardholders should have at least twenty (20) days from statement date to dated 11 February 1998)
inform the card issuer in writing, of any billing error or discrepancy based
on his examination of his/her statement of account. Within ten (10) days **[Article III (Bill of Rights), Section 20 of the 1987 Constitution of the Republic of the
from receipt of the written notice, the card issuer shall either acknowledge Philippines]
NONE. There is no existing receipt of such notice or inform the cardholder of the action taken (if
regulation which puts required action could be completed within said period).
a ceiling on fees, Report a lost or stolen credit card to the
charges and interest The credit card issuer shall inform the cardholder of the results of the card issuer as quickly as possible. Many
rates. However, the investigation within two (2) billing cycles or two (2) months, but not companies have toll-free numbers
BSP requires banks exceeding ninety (90) days from receipt of notice. Thereafter, the credit and 24-hour service to deal with
and their subsidiary card issuer can either effect the necessary corrections in their records or such emergencies. Take note of the
credit card companies collect the disputed amount. During the dispute of the charges, the card reference number and date when you
to properly disclose these issuer is not prohibited from taking any action to collect any amount not first reported the card loss or theft. If
charges to cardholders like you. disputed by the cardholder, nor to apply the disputed amount against the you report the loss before your credit
Before getting a card, we urge that you read and understand the Terms and credit limit of the cardholder. card is used, the issuer cannot hold you
Conditions, particularly fees and charges. This will help you arrive at informed responsible for any unauthorized charges.
choices or decisions in transacting with credit card issuers. (Subsection X320.14 of the MORB; Subsections 4301N.14 and 4320Q.14,
MORNBFI on Handling of Complaints)
 Developed by the Financial Literacy and Advocacy Division

how do i pay my bills?

Financial Consumer Protection Department

Most banks/subsidiary credit card companies have arranged for

convenient ways for you to pay your bills. You may pay your bills
through any of the following:
contact information
Over-the-Counter Payments - payment may be done Financial Consumer Protection Department
directly with the credit card issuers or through Supervision and Examination Sector
authorized payment centers (e.g. various selected Bangko Sentral ng Pilipinas
bank’s branches with established tie-up with the 5th Floor Multi-storey Building
credit card issuer). Some credit card companies BSP Complex, A. Mabini St., Malate
have also arranged payment facilities with customer 1004 Manila
service counters/bills payment facilities of some
department stores.
Telephone Numbers:
Via Automated Channels - through bills payment Trunk Line : (02) 708-7701 local no. 2584
facilities of ATMs Direct Line: (02) 708-7087

Via Phone Facility - upon enrollment with your Email Address: consumeraffairs@bsp.gov.ph
depository bank, you may pay your bills via phone
calls through the use of your individual Telephone
PIN or T-PIN.

On-line Banking Facility - a good number of credit

card companies also offer on-line payment options.
If you are maintaining a deposit account with your
credit card issuing bank, you may log-in to their
website and do online payment.

Automatic Debit Arrangment - You may also arrange

for an automatic debit arrangement with the issuer
which means that your savings or checking account
with a bank will be automatically debited from
the outstanding credit card bills, reflected in your
Statement of Account/Billing Statement.

Financial Education: Building Block for a Stronger Economy