Credit Card Consumer Protection Rules

Pre-approved credit cards shall not be issued by banks/quasi-banks and their credit card subsidiaries/affiliates.
Prior to issuance, proper diligence must be exercised to verify applicants' good credit standing and financial capability.
Evaluation factors include net take-home pay, net monthly receipts, net worth or cash flow, credit behavior from existing credit cards, and lifestyle indicators such as club memberships and vehicle ownership.
Gross monthly income may be considered with reasonable deductions for taxes and other obligations.
Applications, including those from third-party agents, must undergo strict credit risk assessment and verification by authorized personnel not involved in marketing.

Banks/quasi-banks and their credit card affiliates must disclose to cardholders:
- A clear table of applicable fees, penalties, and interest rates on credit card transactions, with periods covered, reasons for charges, and conversion rates for third currency transactions.
- These disclosures should be in plain language, visible on marketing materials, application forms, and billing statements.
- A reminder in monthly billing statements that paying only the minimum amount or less than the total due will incur interest or other charges.
Disclosure materials must be in bold Arial 12 font or equivalent, on the first page of multi-page documents.
A 120-day transition period is granted for full implementation.

Cardholders must be informed in writing at least seven days before their account is endorsed to a collection agency or transferred between agencies.
Notification must include the full name and contact details of the collection agency.
Such notification must be included in the credit card agreement's terms and conditions.
Personnel collecting accounts must disclose their full identity to cardholders.

Disclosure requirements (except payment reminders) apply to other lending operations of BSP-supervised institutions, excluding pawnshops.
Regulations against unfair collection practices apply to these lending operations.
Confidentiality of information requirements also apply to these lending operations.

First offense: Reprimand for responsible directors/officers.
Second offense: Disqualification from BSP credit facilities, subject to certain allowances.
Subsequent offenses: Prohibition from granting additional credit accommodations against personal security and penalties per R.A. No. 7653 sections 36 and 37.

Credit card transactions are subject not only to BSP regulations but also to:
- Republic Act No. 7394 (Consumer Act of the Philippines)
- Republic Act No. 8484 (Access Devices Regulation Act)

The Circular takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.