BSP tells credit card firms: Be fair, reasonable in collecting dues

The Bangko Sentral ng Pilipinas (BSP) has reminded banks and credit card companies anew to be fair and reasonable when collecting from delinquent cardholders. Otherwise, they may be prohibited from availing themselves of central bank credit facilities, for instance, according to the BSP. The use of threat, violence, or other means to harm physically a person, his reputation, or his property is prohibited, the central bank pointed out. The use of obscene, insulting, or profane language that amounts to a criminal offense and disclosure of the names of credit cardholders who allegedly refuse to pay debts are prohibited, the BSP said. The central bank also said that any false representation or deceptive means to collect any debt or to obtain information concerning a cardholder is also against the regulations. Unreasonable collection behaviors Contacting a debtor at unreasonable or inconvenient times — under certain parameters — is also strictly prohibited, the BSP added. Collectors should not contact debtors before 6 a.m. and after 10 p.m., unless the cardholder himself has expressed permission that he can accommodate calls during these hours, the central bank explained. Banks should follow these rules if they want to be more known as consumer-oriented financial institutions, PNB president Eugene Acevedo told reporters. Bank of the Philippine Islands’ president Aurelio Montinola III said that banks should take into consideration that consumer activities are key profit drivers for lenders. The central bank pointed out that credit card rates and other charges are best left to the market, but, at the same, time should be made transparent. Some six years ago, credit card collection practices were so horrible that the central bank was forced to issue BSP Circular 398 that spelled out the acceptable and not acceptable collection behavior of credit card firms and their agents. — JE/VS, GMANews.TV