The Congress has approved a bill which is aimed at regulating credit card industry in the Philippines by bringing it under the regulatory control of the central bank, Bangko Sentral ng Pilipinas (BSP).
The proposed bill will be enacted into law once it receives approval from President Benigno Aquino III. It will empower BSP to supervise all credit card issuers and acquirers operating in the country
The ‘Philippine Credit Card Industry Regulation Act’ will forbid card issuers and collection agents from harassing cardholders as well as ban their unfair and abusive practices of collecting credit card debt. It also mandates credit card issuers to reveal the number of potential and current cardholders and all the fees being charged for late payments.
Violation of the rule would attract fines of PHP50,000 ($1,063) to PHP200,000 ($4,253) or imprisonment of two to ten years, or both, as determined by the BSP’s Monetary Board.