Senate approves credit card reforms protecting credit card holders from excessive charges

The Senate approved on Monday the amended version of House Bill (HB) 5417, known as the ‘Act Regulating the Philippine Credit Card Industry.

BSP data showed that consumer complaints against credit cards companies had increased over the years, according to Senator Sergio Osmeña III, sponsor of the bill.


He said these include excessive charges, unauthorized fees, undisclosed charges, unfair collection and harassment practices by credit card collection agents.

Industry records showed that the number of active credit cards grew by 25.5 percent, from 6.584 million in 2009 to 8.268 million in 2014, Osmeña, chairman of the committee on banks, financial institutions, and currencies, said.

“There has been persistent clamor from the public for us legislators to take proactive action towards protecting the consumers from potential credit card excesses while nurturing the economic benefits from the same,” he said.

What is Philippine's Fair Debt Collection Practices Act?

I have been harassed by credit card debt collectors and suffered a significant amount of humiliation from my family members, neighbors and colleagues because of rude calls and letters from these agents.

These have made me at one point to become a paranoid.

And thus prompt me to make a research about the laws regarding Debt collection and my rights.

My online research led me to the Philippine Senate website.
http://www.senate.gov.ph/lis/bill_res.aspx?congress=14&q=SBN-1277

I have learned that Senator Miriam Defensor Santiago introduced Senate Bill Number 1277 on July 4, 2007, during the 14th Philippine Congress, entitled “An Act Providing For Fair Debt Collection Practices and Requiring Debt Collectors To Observe Such Practices”.