Some people often say that credit cards are only intended for responsible adults who can handle finances properly. Without a doubt, credit cards offer convenience as you do not have to bring cash to pay for your purchases. However, this plastic money can show its sharp fangs and talons to those who are unable to make timely payments. Yes, it is a harmless card that provides you the privilege to make cashless payment, but you can be a slave to debt if you are not a responsible credit card holder. Some may think that the state of being indebted is a humiliating experience, but the truth is, it is a humbling experience as it teaches you one valuable lesson that can make you a better person if and only if you learn from it.
Credit card holders who are being harassed by collectors are a scenario that does not happen once in a super blue moon. There are lots of horror stories involving a credit card holder and a collection agency and if you do not know your rights as a cardholder, the experience can be debilitating. If you have received incessant calls demanding of a payment for your overdue credit card bills, take a deep breath and heave a sigh of relief as it is not the end of the world.
You do not have to make yourself suffer just because of a credit card debt. You can still become debt-free provided, you take full responsibility for mishandling your credit card finances. Some collectors may contact the credit card holder in the wee hours of the morning or late at night just to make the person pay the past due amount. Unless the cardholder has given permission to contact them during these times, calling the cardholder at inconvenient times is prohibited. This violation is under BSP Circular No. 702, Series of 2010.
Under Section 3 and 4 of the circular, the credit companies should do the following:
“1. notify the card holder in writing of the endorsement of the collection to an agency at least seven days before the actual endorsement;
2. give the defaulting credit card holder the name of the agent assigned to the account once they have endorsed the collection to a third-party;
3. change all disclosure documents and marketing materials so that they are printed in plain language and in bold black letters against a white background using the Arial font and a minimum 12 point font size. “
The consumer protection also indicates that a cardholder should also have the option to take advantage of various payment options. If the cardholder cannot pay the debt in full, other repayment plans should be available to them.
Credit card companies who fail to observe the procedures will receive the following sanctions:
“ First offense: Reprimand for the directors/officers responsible for the violation.
Second offense: Disqualification of the bank concerned from the credit facilities of the BSP except as may be allowed under Section 84 of R.A. No. 7653 (“New Central Bank Act”).
Subsequent offenses:
Prohibition on the bank concerned from the extension of additional credit accommodation against personal security; and
Penalties and sanctions under Sections 36 and 37 of RA 7653”
