HAVE you ever received a credit card through mail even without applying for it? While some of us may have been excited at the prospect of having our very own credit card without going through the strict application process, most of us have also been baffled or even worried at the thought of strangers having easy access to our ''plastic money.'' To address the latter concern, the Monetary Board recently approved amendments to credit card regulations. Among the measures aimed at improving consumer protection and promoting better transparency are the following: Credit card companies will no longer be allowed to issue pre-approved credit cards. The Monetary Board has noted public concerns that pre-appoved cards sent either through mail or delivered by couriers may have exposed consumers to unauthorized use of their cards. The Monetary Board also requires banks and their subsidiaries or affiliate credit card companies to exercise proper diligence before issuing credit cards by determining the applicant's credit standing and capacity to pay. Further, credit card companies are now required to notify cardholders in writing before their accounts are endorsed to a collection agency. This notification requirement is expected to give cardholders enough time to settle their obligations. Under the amended regulations, credit card companies are likewise required to ensure that collection agents reveal their real identity to cardholders. This move is expected to address complaints pertaining to unfair collection practices by some collection agents. Disclosure requirements have also been expanded under the new guidelines: Credit card issuers, for example, will now be required to print a table of their applicable fees, penalties, and interest rates on credit card transactions. Related thereto, the BSP has also mandated a ''No Fine Prints Policy.''
The BSP now specifically requires the aforementioned tables to be printed using plain language, bold black letters against a light or white background, and minimum Arial-theme, font size 12. Cardholders will likewise be constantly reminded in their 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 finance charges. The BSP Financial Consumer Affairs Group (FCAG) advises cardholders that it is best to pay their bills in full as much as they can, to avoid or, at least, reduce finance charges. FCAG also advises the public to report violations of the aforestated guidelines and other credit-card related concerns via telephone numbers (632) 524-7011 local 2584 or (632) 523-3631, or e-mail address: consumeraffairs@bsp.gov.ph.
