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By Maricel V. Cruz Reporter
Eight bills and
resolutions—classified as legislation of both national and local
importance—have been filed in the House of Representatives to
address the consumers complaints and other issues related to credit
cards since the Thirteenth Congress in 2004. All of them are still
pending at various committees.
These are:
House Bill 00121: An act
providing for protection to consumers in their credit-card
transactions, otherwise known as the Credit Card Consumer Protection
Act of 2004, authored by then-Rep. Joey Salceda of Albay.
The rationale for the bill is: In
view of continuing complaints raised against credit-card companies
for double charging, high interest, penalties, financing and other
charges, there is a need to review the issuance of credit cards to
protect the interests of consumers.
Salceda’s proposal seeks to
protect consumers from deceptive price increases for goods and
services by prohibiting unfair credit-card surcharges. It aims to
encourage the availability of discounts given by retailers who wish
to offer lower prices for goods and services purchased through the
use of credit cards.
The bill was filed on July 1,
2004, and is pending with the House Committee on Trade and Industry
since July 27, 2004.
HB 01191: An act providing for
protection to consumers in their credit-card transactions, otherwise
known as the Credit Card Consumer Protection Act of 2002. The bill
is filed by Rep. Felix Alfelor of Camarines Sur, vice-chairman of
the House Committee on Banks and Financial Intermediaries. He filed
it on August 2, 2004.
Alfelor’s bill provides for
stiff punishments for unauthorized use of credit card and billing
errors and prohibits retailers from imposing surcharges on purchases
made through credit cards. The bill has been pending with the trade
and industry committee since August 2, 2004.
HB 01194: An act declaring it
unlawful for financial establishments and other entities engaged in
the credit-card business to charge interest rates exceeding 42
percent per annum, including penalty for late payment and other
finance charges and providing penalties therefore.
It was also Alfelor, who authored
the bill on August 2, 2004. It has been pending with the House
Committee on Trade and Industry since then.
The bill imposes a fine of
P100,000 and imprisonment of three to six years for violators of
this act.
HB 0153: An act prohibiting
merchandising stores from charging more than the cash retail price
of goods purchased with credit cards and prescribing penalties for
any violation thereof.
The bill was authored by Rep.
Edcel Lagman of Albay, vice-chairman of the House Committee on Trade
and Industry. It was filed on July 7, 2004, and pending with the
House Committee on Trade and Industry since August 8, 2004.
The bill declares it unlawful for
any merchandising store to charge consumers with more than the
actual cash retail price of the goods purchased when such purchase
is done with the use of a credit card. It prescribes a penalty of
six months to one year imprisonment or a fine of P20,000 to
P100,000.
HB 02946: An act providing
protection to credit-card holders by setting a ceiling on interest
rates and surcharges and prohibiting hidden penalties or costs
imposed by banks and similar financial institutions on purchases and
cash advances made through such credit facility.
The bill was authored by Rep.
Amelita Villarosa of Occidental Mindoro and filed on October 25,
2004; currently pending with the House Committee on Banks and
Financial Intermediaries since the date of filing.
The bill sets the interest rate
limit, which may be imposed by credit-card companies at not more
than 1 percent per month, or 12 percent per annum, without
compounding. It also limits the surcharges or penalties to a ceiling
of 1 percent per month without compounding.
House Resolution 00937:
Resolution calling for a thorough investigation, in aid of
legislation, into the alleged unlawful activities committed by
credit-card companies regarding the unfair collection practices to
the prejudice of the credit-card holders.
Rep. Catalino Figueroa of Samar
authored the resolution on September 9, 2005, and adopted and
approved on second reading in plenary on January 18, 2006. It has
been pending with the House Committee on Trade and Industry since
the date.
HR 01291: Resolution directing
the House Committee on Banks and Financial Intermediaries to conduct
an investigation, in aid of legislation, relative to the conduct of
Bankard and other credit-card companies to continuously charging its
clients notwithstanding notice thereof regarding the termination of
the relationship between the credit-card holder and the retailer
(merchant affiliate).
Rep. Harlin Cast Abayon of
Northern Samar introduced the resolution, which was adopted and
approved on second reading for committee action on October 10, 2006.
HR 01454: Resolution requesting
the Committee on Oversight to conduct an inquiry, in aid of
legislation, into the policies being adopted by various credit-card
institutions in the light of numerous complaints of the card
holders.
The resolution was filed by Rep.
Danilo Suarez of Quezon, which was adopted for committee action on
February 20, 2007.
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