The Bangko Sentral ng Pilipinas (BSP) reminded credit card holders of the importance of paying down debt and offered some tips for those having a difficult time managing payments.
“If you find that you are in trouble paying your credit card bills, contact your credit card company immediately and try to work out a modified payment plan that reduces your payables to a more manageable level,” the BSP financial consumer protection department supervision and examination sector said in a statement.
They also stressed not to wait for credit card companies to pass their account to a collection agency, however, in the event it occurs, the institution pointed out consumers have protections against “unfair collection practices.”
According to the BSP, threats of violence, the use of obscenities or profane language, the disclosure of the identity of credit card holders who allegedly refuse to pay debts, among other actions are considered violations of the Manual of Regulations for Banks.
Additionally, lending institutions are barred from contacting customers before 6:00 a.m. or after 10:00 p.m., unless the customer gave permission or has a past due account of over 60 days.
BSP highlighted the importance of paying down debt as it may impact one’s credit history.
“Credit history reflects your credit activity and payment performance on any credit account you’ve had in the past,” the statement noted. “A good credit reputation will ensure ease of approval of future loan applications.”
For more information, please contact the BSP financial consumer protection department supervision and examination sector at firstname.lastname@example.org or visit the BSP website./WDJ