Question & AnswerQ&A (BSP CIRCULAR NO. 845)
A pre-approved credit card is an unsolicited credit card issued by credit card issuers to consumers who have not applied for such credit cards.
Application is a documented request of the credit card applicant to a credit card issuer for the availment of a credit card, where the intention and consent for the availment must be clear and explicit.
Yes. Acts such as sending credit cards without prior application or consent are deemed tantamount to issuing pre-approved credit cards, regardless of any contract stipulations to the contrary.
Examples include sending unsolicited credit cards without prior application, sending unsolicited supplementary cards not replacing existing cards, unsolicited calls requesting updated information, and sending credit cards as free offers for availing other bank products.
No. The circular explicitly states that the prohibition against issuing pre-approved credit cards prevails notwithstanding any contrary stipulations in contracts.
The Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) were amended by this circular.
It prohibits all BSP-supervised financial entities with credit card operations from issuing pre-approved credit cards as described in the circular and related appendices.
The circular took effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.
These appendices enumerate the acts that are tantamount to issuing pre-approved credit cards for banks, quasi-banks, and non-bank financial institutions respectively.
The intention and consent of the credit card applicant to avail the credit card must be clear and explicit.
No. It applies to all BSP supervised financial entities with credit card operations, including banks, quasi-banks, and non-bank financial institutions.
Sending credit cards as free offers to consumers who availed of other bank financial products is considered tantamount to issuing pre-approved credit cards and is prohibited.