The Bangko Sentral ng Pilipinas, the Philippines central bank, has issued new regulations designed to further protect the country’s credit cardholders from abuse.
In a notice dated Jan. 16, the bank called for credit card issuers and their collection agents to refrain from engaging in unfair collection practices, such as using violence or other criminal means to harm individuals or their reputation or property. The new regulations also prohibit the use of obscenities, insults or profane language that amounts to a criminal act or offense under applicable laws.
In addition, credit card issuers may not disclose the names of credit cardholders who allegedly refuse to pay debts, and they cannot threaten to take any action they could not legally take. The central bank also prohibited any false representation or deceptive means to collect or attempt to collect any debts or to obtain information concerning a cardholder.
The new policy also prohibits issuers and their agents from attempting to contact cardholders at unreasonable or inconvenient times, or before 6 a.m. or after 10 p.m. However, they could circumvent the time range if the account is past due for more than 60 days or the cardholder has given permission to do so or has said other times are more reasonable or convenient.
This is the second such time in a month that the central bank has issued rules in support of the country’s credit cardholders. In December, it barred credit card issuers in the Philippines from issuing preapproved credit cards and directed them to inform cardholders seven days in advance before sending their delinquent accounts to collection (
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