Bangko Sentral okays tighter credit card regulations

The Bangko Sentral ng Pilipinas (BSP) has approved amendments to credit card regulations to further protect consumers. In a statement Monday, the central bank said that banks or credit card companies may no longer issue pre-approved credit cards. "Pre-approved credit cards sent either through the mail or delivered by courier have exposed the public to cases of fraud via unauthorized use of cards," the BSP said. The central bank also tightened collection practices. "All cardholders [should] be notified in writing seven days before any account is endorsed to a collection agency." Credit card companies are likewise required to ensure that collection agents disclose their identity to cardholders. "This move is to address mounting complaints regarding unfair collection practices by some collection agents," the BSP said. Credit card issuers are now required to print the table of applicable fees, penalties, and interest rates on credit card transactions, using the 12-point Arial font. "This table will be included in all marketing materials and in the billing statements and shall include the manner of and reason for the imposition of such penalties, fees, and applicable conversion reference rates for third-currency transactions," the BSP explained. Cardholders should be notified in billing statements "that payment of only the minimum amount due or any amount less than the total amount due for a billing cycle would automatically mean the imposition of interest and other charges," the central bank added. — JE/VS, GMANews.TV