Regulation of access devices and fraud

Policy and purpose

Section 2 recognizes advances in technology and the widespread use of access devices in commercial transactions.
Section 2 requires regulating the issuance and use of access devices to protect the rights and define the liabilities of parties in commercial transactions.
Section 2 directs the State to define liabilities by regulating access-device issuance and use.

Core definitions

Section 3 defines “Access Device” as any card, plate, code, account number, electronic serial number, personal identification number, telecommunications service, equipment, or instrumental identifier, or other means of account access used to obtain money, goods, services, or any other thing of value, or to initiate a transfer of funds (other than a transfer originated solely by paper instrument).
Section 3 defines “Counterfeit Access Device” as any access device that is counterfeit, fictitious, altered, or forged, or an identifiable component of such counterfeit device.
Section 3 defines “Unauthorized Access Device” as any access device that is stolen, lost, expired, revoked, canceled, suspended, or obtained with intent to defraud.
Section 3 defines “Access Device Fraudulently Applied for” as any access device applied for or issued on account of the use of falsified document, false information, fictitious identities and addresses, or any form of false pretense or misrepresentation.
Section 3 defines “Consumer” as a natural person.
Section 3 defines “Credit Card” as any card, plate, coupon book, or other credit device existing for obtaining money, goods, property, labor or services, or any thing of value on credit.
Section 3 defines “Device Making or Altering Equipment” as equipment, mechanism, or impression designed or primarily used for making, altering, or re-encoding an access device or a counterfeit access device.
Section 3 defines “Finance Charges” as amounts incident to the extension of credit such as interest or discounts, collection fees, credit investigation fees, and other service charges.
Section 3 defines “Open-end-credit Plan” as a consumer credit extended on an account under which the creditor may permit purchases or loans from time to time directly or indirectly by using a credit card or other service, the person may pay the balance, and finance charge may be computed from time to time on an unpaid balance.
Section 3 defines “Penalty Charges” as amounts imposed on the credit card holder for non-payment of an account within a prescribed period in addition to interest.
Section 3 defines “Produce” as including design, alter, authenticate, duplicate, or assemble.
Section 3 defines “Trafficking” as transferring or disposing of to another, or obtaining control with intent to transfer or dispose of.

Credit card application and solicitation disclosures

Section 4 requires that any application to open a credit card account for any person under an open-end credit plan, or any solicitation to open such an account, disclose specified information.
Section 4 requires disclosure in writing or orally, depending on the solicitation method used.
Section 4 requires disclosure of the Annual Percentage Rate of interest on the amount of credit obtained by the credit card holder under the plan, including disclosure that the rate is variable when variable, the annual percentage rate in effect at the time of the mailing, and the range of balances to which different rates apply when more than one rate applies.
Section 4 requires disclosure of Annual and other Fees, including any annual fee, other periodic fee, membership fee for issuance or availability of the credit card, any account maintenance fee or any other charge based on activity or inactivity during the billing cycle.
Section 4 requires disclosure of minimum finance charge for each period during which any extension of credit subject to finance charge is outstanding.
Section 4 requires disclosure of any transaction charge imposed in connection with use of the card to purchase goods or services.
Section 4 requires disclosure of any fee, penalty or surcharge imposed for delay in payment of an account.
Section 4 requires disclosure of the Balance Calculation Method and the Cash Advance Fee and the Over-the-Limit-Fee when extension of credit exceeds the authorized credit amount.

Additional disclosure for catalog or print

Section 4 imposes additional disclosure requirements when the application or solicitation is made through catalogs, magazines, or other publications.
Section 4 requires a conspicuous and prominent statement that the disclosed information is accurate as of the date the application or solicitation was printed.
Section 4 requires a conspicuous and prominent statement that the disclosed information is subject to change after that printed date.
Section 4 requires telling the applicant to contact the creditor about changes since the printed date.
Section 4 requires stating the date the application or solicitation was printed.
Section 4 requires, in a conspicuous and prominent location, a toll free telephone number or mailing address to obtain changes since the printed date.

Computation and detailed charge explanation

Section 5 requires that, in addition to Section 4 disclosures, a credit card issuer provide a detailed explanation and a clear illustration of how all charges and fees are computed.
Section 5 requires this provision “to the extent practicable” in the computation explanation and illustration.

Exceptions for telephone solicitations

Section 6 allows omission of the disclosures required under Section 4 in telephone solicitation or application if the credit card issuer meets all specified conditions.
Section 6 requires the issuer not impose any fee connected with Section 4 (b)(1) as a condition for omission.
Section 6 requires that the issuer not impose any telephone-solicitation fee unless the consumer signifies acceptance by using the card.
Section 6 requires the issuer to disclose clearly the Section 4 information in writing within thirty (30) days after the consumer requests the card, and in no event later than the card delivery date.
Section 6 requires the issuer to disclose clearly that the consumer is not obligated to accept the card or account and will not be obligated to pay fees or charges disclosed unless the consumer elects to accept by using the card.

Disclosure prior to renewal and fee posting

Section 7 requires renewal-related disclosures by a card issuer that imposes any fee described in Section 4 (except in telephone solicitations).
Section 7 requires a clear and conspicuous disclosure transmitted to the consumer’s credit card account stating the date, month, or billing period by which the account will expire if not renewed.
Section 7 requires transmitting the Section 4 information at least thirty (30) days prior to the scheduled renewal date of the consumer’s credit card account.
Section 7 requires transmitting the Section 4 information described in Section 4 (a)(1) to the consumer’s credit card account.
Section 7 requires disclosing the method by which the consumer may terminate continued credit availability under the account.
Section 7 requires that disclosures must be made prior to posting the fee described in Section 4 (b)(1) to the account.
Section 7 allows a condition where the first periodic billing statement disclosing the fee is used, but the consumer must be given a thirty (30) day period to avoid payment of the fee or obtain re-credit if the consumer does not wish to continue credit availability.

Consequences for failure to disclose

Section 8 provides that credit card companies that fail to disclose information required under Sections 4, 5 and 7 may have their authority to issue credit cards suspended or cancelled.
Section 8 requires due notice and hearing before suspension or cancellation.
Section 8 names the decision-making regulators as the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and such other government agencies.

Unlawful access-device fraud acts

Section 9 declares the following acts unlawful and constitutes access device fraud.
Section 9 prohibits producing, using, or trafficking in one or more counterfeit access devices.
Section 9 prohibits trafficking in one or more unauthorized access devices or access devices fraudulently applied for.
Section 9 prohibits using, with intent to defraud, an unauthorized access device.
Section 9 prohibits using an access device fraudulently applied for.
Section 9 prohibits possessing one or more counterfeit access devices or access devices fraudulently applied for.
Section 9 prohibits producing, trafficking in, having control or custody of, or possessing device-making or altering equipment without being in the business or employment that lawfully deals with the manufacture, issuance, or distribution of such equipment.
Section 9 prohibits inducing, enticing, permitting, or allowing another for consideration or otherwise to produce, use, traffic in counterfeit access devices, unauthorized access devices, or access devices fraudulently applied for.
Section 9 prohibits multiple imprinting on more than one transaction record, sales slip, or similar document making it appear the device holder entered into a transaction other than those lawfully contracted for, and submitting such extra sales slips through an affiliated merchant who connives or presenting them under false pretenses of being an affiliated merchant, and similar documents.
Section 9 prohibits disclosing any information imprinted on the access device (including account number or name or address of the device holder) without the device holder’s authority or permission.
Section 9 prohibits obtaining money or anything of value through use of an access device with intent to defraud or to gain and then fleeing thereafter.
Section 9 prohibits possessing without authority from the owner of the access device or access device company an access device, or materials such as slips, carbon paper, o