Credit Card Woes: UNCIVILIZED COLLECTORS

I came across a blogsite (www.equalizerpost.com which for me is a very informative and refreshing blog which I am asking you to visit) which discussed about the harassment made by collection agencies representing credit care companies like Bankard, Mastercard and others.  Believe it or not, there are other collectors who call you up in the middle of the night reminding you of overdue accounts and demanding immediate payments. (NOTE: SARADO AND BANGKO, MAGPATULOG NAMAN KAYO!)  

He said that debt collectors have been the most complained-about people in the credit card business . And abuses by out-of-control collectors appear to be getting worse.
 

HERE IS THE FULL TEXT OF HIS WRITE UP WHICH I WANT TO SHARE TO YOU AS IT REALLY HELPS, ESPECIALLY ME THAT I AM ALSO A VICTIM OF THESE HEARTLESS AND RUTHLESS AGENTS. READ ON: (taken verbatim from www.equalizerpost.com)

Debt collection harassment and abuse can take a particular toll on vulnerable older consumers.  The good news is that there are Central Bank regulations that are intended to protect consumers from debt collection and harassment.  These laws apply regardless of whether the consumer owes money on the debt being collected.  The bad news is that many collectors still do not comply with the law.

The information below will help advocates counsel clients about what a debt collector can and cannot do and how consumers can protect themselves.  It is also important to work with older consumers to help them evaluate which debts are highest priorities and what the possible consequences might be if they are unable to repay all of their debts.

What Can a Debt Collector Really Do? (TAKE NOTE)

A debt collector working on behalf of a creditor can do little more than demand payment.  If the creditor has not taken the client’s house, car, or other property as collateral on a loan, then legally the creditor can only do three things:

1. Stop doing business with the consumer.
2. Report a default to a credit bureau.
3. Sue the consumer in court.  This threat may not be as serious as many consumers think.  Many creditors do not follow through on their threats.  Even if they do, consumers can raise defenses to paying the debt.  And even if the creditor obtains a judgment, this judgment still does not force the consumer to pay the debt.  It only gives the creditor the right to try to seize part of a consumer’s wages or property.

Here's an actual case:

The law office of a former member of Congress (Simplicio Domingo Jr. of Isabela, 1987-1992) is sending silly collection letters on long expired credit cards...PCIB BANKARD of the 1980s.

Modus Operandi:

Let's say you officially cut-off with PCIB Bankard in 1984 or 25 years ago. 

They dig up your very old files and see an uncollected P750 renewal fee for your already cut-off membership. They use this as the basis to intimidate you with legal action after 25 years. 

The P750 membership becomes P60,000 after 25 years in the fake overdue account! (P750 x20% annual interest fee (compounded daily)x25 years = 57237.73 +P3000 collection fee=P60k! 

 

Bankard is now owned by the Yuchengco Group of Companies (of the PACIFIC PLAN "fame"). We wonder whether the Yuchengco Group knows about this scam! 

 

 Bangko Central Ng Pilipinas On Unfair Credit Card Collection Practices:  

"False representation or deceptive means to collect any debt or obtain information concerning a cardholder." 

Unfair Collection Practices. Banks, subsidiary/affiliate credit card companies, collection agencies, counsels and other agents may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement: Provided, That in the exercise of their rights and performance of duties, they must observe good faith and reasonable conduct and refrain from engaging in unscrupulous or untoward acts.  

Without limiting the general application of the foregoing, the following conduct is a violation of this Subsection:  a)    the use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person;  b)   the use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;  c)   disclosure of the names of credit cardholders who allegedly refuse to pay debts, except as allowed under Subsec. X320.9 and 4301N.9;  d)   threat to take any action that cannot legally be taken;  e)   communicating or threat to communicate to any person credit information which is known to be false, including failure to communicate that a debt is being disputed;  f)    any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder; and  g)   making contact at unreasonable/inconvenient times or hours which shall be defined as contact before 6:00 A.M. or after 10:00 P.M., unless the account is past due for more than sixty (60) days or the cardholder has given express permission or said times are the only reasonable or convenient  opportunities for contact.

WHERE TO FILE YOUR COMPLAINT?Complainants should send email to BSP:  consumeraffairs@bsp.gov.ph

BSP requires the following:

1.   The full name of the complainant  and the financial institution (FI) being complained of:

2.   The signatory to the complaint should be the transactor or his/her authorized agent.

3.   Contact information and address of the complainant

4.   Copies of relevant documents that support the complaint.

5.   The facts of the harassment case.

We also have researched the following for you to write should you be a victim of this unethical behaviour

MS. MARIA BELINDA G. CARAAN

Acting Deputy Director/Head

Financial Consumer Affairs Group

Central Supervisory Support Subsector

Bangko Sentral ng Pilipinas

Mabini, Manila

TERESITA P. LISAMA

Assistant Manager

Consumer Assistance and Policy Initiation Division

(under the same Group)

We hope that this has been a help to you, dear followers.