FIFTEENTH CONGRESS OF THE REPUBLIC 
~ 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
SENATE 
5.B. No. 2492 
) 
) 
Introduced by: SEN. RAMON BONG REVILLA, JR. 
EXPLANATORY NOTE 
Credit cards are becoming more and more prevalent in Philippines. 
This was once a commodity often limited to those in the upper-crust of 
society or the jetsetters who first picked up on the famous western habit of 
credit card use. Slowly but ever increasingly, the lure of deferring payment 
for products and services through this little plastic wonder has caught the 
attention of the masses. And why not? It is after all a convenient way of 
shopping or instantly purchasing items on a whim and stretching the 
obligation of payment for months or even years. 
To date, credit card companies are continually making it easier for 
the common man to secure a credit card. They have lowered their 
requirements for applications, sped up the process and tirelessly barrage 
the public with commercials and ingenious marketing strategies. Most of 
us fall prey to this without fully understanding the underlying obligations 
we have subsequently subjected ourselves to. A sizable amount of our 
fellowmen are now knee deep in debt simply because credit card interest 
rates and other hidden charges that were either unclear or was not fully 
understood by them. 
It is our responsibility as legislators to provide the proper framework 
for these companies that offer credit cards and other access device 
transactions. There is no law in our country at the moment that specifically 
addresses this specific type of service, and as a result, these companies 
virtually have a carte blanche on interest rates and surcharges they 
impose on their customers. This measure also calls for more transparency 
on the part of the credit card companies to ensure that the consumer is 
more aware of the scope of his debt/obligations to the company. It is for 
these reasons that I urge my colleagues for the passage of this bill. 
NG REVILLA, JR. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
SENATE 
S.B. No. 2492 
Introduced by: SEN. RAMON BONG REVILLA, JR. 
"AN ACT 
GOVERNING CREDIT CARD AND 
OTHER ACCESS DEVICE TRANSACTIONS 
AND PROVIDING PENALTIES THEREFOR." 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "Credit Card and Other 
Access Device Act of 201 0." 
SEC. 2. Declaration of Policy. -
The State shall simplify, clarify and 
modernize the laws governing credit transactions and encourage 
the development of fair and economically sound consumer credit 
practices. The State shall promote the general welfare of the 
people by protecting the privacy of consumers in corrunercial 
transactions involving, the use of credit cards. The State shall 
assure the full disclosure of the true cost of credit to protect the 
consumer from lack of awareness of the true cost of credit to the 
user. The State shall protect the economic interest of the people by 
assuring that only reasonable interest rates and surcharges will be 
imposed on credit card transactions, as well as prohibit hidden, 
charges on credit card transactions. 
SEC. 3. Definition of Terms. - As used in this Act, the term: 
(A.) "Credit Card" means any instrument or device, whether known 
as a credit card, credit plate, coupon book or other card device 
issued with or without fee by an issuer, existing for the purpose of 
obtaining money, property, labor, services, or anything of value on 
credit. It shall not include a check guarantee card. 
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(8) "Open-End-Credit Plan" means a consumer credit extended to an 
account pursuant to a plan under which: 
(1) The creditor may permit the cardholder to make 
purchases or obtain loans, from time to time, directly from 
the creditor or indirectly by the use of credit card; 
(2) The person has the privilege of paying the balance; and 
(3) A finance charge may be computed by the creditor from 
time to time on an outstanding unpaid balance. 
(C) "Access Device" means any card, plate, code, account number, 
electronic serial number, personal identification number, or other 
telecommunications service, equipment, or instrumental identifier, 
or other means of account access that can be used alone or in 
conjunction with another access device, to obtain money, goods, 
services, or any other thing of value, or that can be used to initiate 
a transfer of fund (other than a transfer originated solely by paper 
instrument); 
(D)"Counterfeit Access Qevice" means any access device that is 
counterfeit, 
fictitious, 
altered, 
or forged, 
or an 
identifiable 
component of an access device or a counterfeit access device; 
(E) "Unauthorized Access Device" means any device that is lost, 
stolen, expired, revoked, cancelled, or obtained with intent to 
defraud; 
(F) "Produce" includes design, alter, 
authenticate, duplicate, or 
assemble; 
(G) "Traffic" means transfer, or otherwise dispose of, to another, or to 
obtain control of with intent to transfer or dispose of; 
(H) "Device-making equipr1!ent" means any equipment, mechanism, or 
impression designed or primarily used for making an access device 
or a counterfeit access device; 
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(I) "Credit Card System Member" means a financial institution or other 
entity that is a member of a credit card system, including an entity, 
whether affiliated with or identical to the credit card issuer, that is 
the sole member of a credit card system; 
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(J) "Scanning Receiver" means a device or apparatus that can be used 
to intercept a wire or electronic communication; 
(K) "College Student Credit Card Account" means a credit card account 
under an open-end consumer credit plan established or maintained 
for or on behalf of any college student; 
(L) "College Student" means an individual: 
(1.) Who is a full-time student attending an institution of 
higher education; and 
(2.) Who has not yet attained the age of 21. 
(M)"lnstitution of Higher Education" means institutions offering tertiary 
degree programs and post secondary programs; 
(N)"Tertiary Degree Programs" refer to courses of study leading to 
master's, doctor's or similar degrees. It also includes courses of 
study which by themselves may be only for one, two, or three-year 
courses of study leading to less than a bachelor's degree program, 
but which can subsequently be credited in full bachelor's degrees. 
SEC. 4. Privacy and Fraud. -
(A.) No person, firm, partnership, corporation, or other business 
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entity that accepts a credit card for a business transaction shall 
write, cause to be written, or require that a credit card holder 
write personal identification, not required by the credit card 
issuer, 
on 
the credit card transaction 
form. 
Personal 
identification information shall include, but shall not be limited 
to a credit card holder's address or telephone number. 
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(6.) Acts of fraud and related activity in connection with access 
devices are hereby prohibited, such as those who shall: 
1) Knowingly and with intent to defraud uses or traffics in 
one or more counterfeit access devices; 
2) Knowingly and with intent to defraud uses or traffics in or 
uses any unauthorized device, and by such conduct obtains 
anything of value; 
3) Knowingly and with intent to defraud, produces any 
counterfeit access device or any unauthorized access 
device; 
4) Knowingly and with intent to defraud, produces, traffics in, 
has control or custody of, or possesses device-making 
equipment; 
5) Knowingly and with intent to defraud, uses, produces, 
traffics in, has control or custody of, or possesses a 
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telecommunications device; 
6) Knowingly and with intent to defraud, uses, produces, 
traffics in, has control or custody of, or possesses: 
a.) A scanning receiver; or 
b,) Hardware or software used for altering or 
modifying telecommunications instruments to obtain 
unauthorized access to telecommunications devices 
7) Knowingly and with intent to defraud effects transaction, 
with one or more access devices issued to another person or 
persons, to receive payment or any other thing of value; 
8) Without authorization of the issuer of the access device, 
knowingly and with intent to defraud, solicits for the purpose 
of: 
i) Offering an access device; or 
ii) Selling information regarding an application to 
obtain an 'access device; or 
9) Without the authorization of the credit card system 
member or its agent, knowingly and with intent to defraud 
causes or arranges for another person to present to the 
member or its agent, for payment, one or more evidence or 
records of transactions made by an access device; 
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(C.) The provisions of this section shall apply to all credit card 
transactions; provided, however, that the provisions of this section 
shall not be construed to prevent a person, firm, partnerships, 
corporation, or other business entity from requesting information 
that is necessary for shipping, delivery, or installation or purchased 
merchandise or services or for a warranty when such information is 
provided voluntarily by a credit holder. In addition, the provisions of 
this section shall not be construed to prohibit a person, firm, 
partnership, corporation or other business entity from requesting 
one or more additional identification cards to confirm the identity of 
the credit card user. 
SEC. 5. Notice and Minimum Payments. -
(A) In the case of any credit card under an open-end-credit plan, no 
increase in any annual percentage rate of interest shall be allowed 
except an increase due solely to a change in another rate of 
interest to which such rate is indexed or an increase due to the 
expiration of any introductory percentage rate of interest applicable 
to any outstanding balance of credit· under such plan; and no 
change in the index used to determine any such annual percentage 
rate of interest shall likewise take effect before the end of the ninety 
(90) day period beginning on the date of notice of such increase or 
change in index is first provided to the consumer. 
(8.) If, after receiving a notice with respect to any credit card 
account under an open-end-credit plan, a consumer cancels the 
credit card account before the end of the ninety (90) day period, the 
following shall be observed: 
1.) An annual percentage rate of interest applicable after the 
cancellation with respect to the outstanding balance on such 
account as of the date of cancellation may not exceed any 
annual percentage rate or interest applicable with respect to 
such balance under the terms and conditions in effect before 
the cancellation; and 
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2.) The repayment of such outstanding balance after the 
cancellations shall be subject to all other terms and 
conditions applicable with respect to such account before the 
cancellation. 
(C) The notice referred to with respect to an increase in any annual 
percentage rate of interest or any change in an index shall be made 
in a clear and conspicuous manner and shall contain a brief 
statement of the rights of the consumer: 
1.) To cancel the account before the effective date of the 
increase or change in index; and 
2,) After such cancellation, to pay any balance outstanding 
on such account at the time of the cancellation in 
accordance with the terms and conditions in effect before the 
cancellation. 
(D.) Additional information regarding repayment of the outstanding 
balance of the consumer under the account, appearing in 
conspicuous type on the front of the first page of each such billing 
statement, and accompanied by an appropriate explanation, shall 
contain: 
1.) The words "Minimum Payment Warning: Making only the 
minimum payment will increase the amount of interest that 
you pay and the time it will take to repay your outstanding 
balance"; 
2.) The number of years and months (rounded to the nearest 
month) that it would take for the consumer to pay the entire 
amount of that balance, if the consumer pays only the 
required minimum monthly payments; 
3.) The total cost to the consumer, shown as the sum of all 
principal and interest payments, and the breakdown of the 
total costs in interest and principal, of paying that balance in 
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full if the consumer pays only the required minimum monthly 
payments, and if no further advances are made; 
4.) The monthly payment amount that would be required for 
the consumer to eliminate the outstanding balance in 36 
months if no further advances are made; and 
5.) A toll-free number at which the consumer may receive 
information about accessing credit counseling and debt 
management services. 
SEC. 6. Imposable Interest Rates and Charges. -
(A.) Interest rates imposed on any credit card on purchases and 
cash advances made through such facility shall in no case be 
higher than 1 % per month or 12% per annum, without 
compounding; 
(B.) Surcharges or penalties shall likewise be limited to a ceiling of 
1 % per month, without compounding; 
(C.) No other costs shall be imposed other than the foregoing 
except for reasonable attorney's fees and expenses of 
collection completely disclosed to, sufficiently understood by 
and voluntarily agreed with by an applicant for a credit card; 
(D.) The pertinent provisions of the Truth in Lending Act shall apply 
suppletorily insofar as relevant and complimentary to the 
provisions of this Act. 
SEC. 7. Student Credit Card Protection. -
(A.) Unless a parent, legal guardian, or spouse of a college stUdent 
assumes joint liability for debts incurred by the student in 
connection with a college student credit card account: 
1.) No credit card issuer shall grant a college student card 
account where the credit limit for that account exceeds, 
during a full calendar year: 
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(a.)Twenty percent (20%) of the annual gross Income 
of the student, if any; or 
(b.) Fifteen Thousand Pesos (P15,000.OO), whichever 
is greater; and 
2.) No credit card issuer shall grant a student a credit card 
account, if the credit limit for that credit card account, 
combined with the credit limits of any other credit card 
accounts held by the student, would exceed thirty percent 
(30%) of the annual gross income of the student, if any, in 
the most recently completed calendar year. 
(B.) No increase shall be made in the amount of credit authorized to 
be extended under a college student credit card account for which 
a parent, legal guardian, or spouse of the consumer has assumed 
joint liability, unless such parent, guardian, or spouse, as the case 
may be, approves in writing, and assumes joint liability for, such 
increase. 
(C.) For purposes of this Act, a credit card issuer shall require 
adequate proof of income, income history, and credit history, 
subject to the rules of the Monetary Board of the Bangko Sentral ng 
Pilipinas, before any college student credit card account may be 
opened by or on behalf of a student. 
(D.) No credit card issuer may open a credit card account for, or 
issue any credit card to, any college student who: 
1) Has no verifiable annual gwss income; and 
2) Already maintains a credit card under an open-end-
consumer credit plan with that credit card issuer; or any 
affiliate thereof. 
(E.) The Monetary Board of the Bangko Sentral ng Pilipinas may, 
by rule, 
provide for exemptions to the provisions of this 
subsections, as deemed necessary or appropriate and consistent 
with the purpose of this Act. 
SEC. 8. Penalties.-
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(A.) Any violation of the provisions of this Act shall be punishable by 
a penalty of imprisonment of arresto mayor or a fine ranging from 
Fifty Thousand Pesos (P50,000.00) to One Hundred Thousand 
Pesos (P100,000.00), or both, depending upon the gravity of the 
act committed and the circumstances attendant thereto as may be 
determined by the court. 
(B.) If the entity responsible for the prohibited act is a corporation, 
trust or firm, partnership, association, or any other entity, the 
penalty or imprisonment shall be imposed on the entity's 
responsible officers, including, but not limited to, the president, 
vice-president, chief executive officer, general manager, managing 
director, or partner directly responsible therefor. 
(C.) In case the violation is committed by, or in the interest of a 
foreign juridical person duly licensed to engage in business in the 
Philippines, such license to engage in business in the Philippines 
shall immediately be revoked. 
SEC. 9. The National Bureau of Investigation (NBI) shall, in addition to any 
other agency having such authority, have the authority to 
investigate offenses under this Act. 
SEC. 10. Any person who engages in the conduct of any trade or 
commerce and who suffer any loss or money or property, real or 
personal, as a result of the use or employment by another person 
who engages in any act proscribed in this Act may bring in court, 
without prejudice to the criminal liability provided for in this Act, 
whether by way of original complaint, counterclaim, cross-claim or 
third-party action for damages and such equitable relief, including 
an injunction, as the court deems to be necessary and proper. Such 
person, if he has not suffered any loss of money or property, may 
obtain such an injunction if it can be shown that the aforementioned 
unfair method of competition, act or practice may have the effect of 
causing such loss of money or property. 
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• 
For purposes of this section, the injured party has one (1) year from 
the date of the cause of action arises to file the appropriate 
complaint. 
SEC. 11. If any provision or part hereof, is held invalid or unconstitutional, 
the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SEC. 12. Any law, presidential decree or issuance, executive order, letter 
of instruction, administrative order, rule or regulation contrary to, or 
inconsistent with the provision of this Act is hereby repealed, modified, or 
amended accordingly. 
SEC. 13. This Act shall take effect fifteen (15) days after its publication in 
at least two (2) newspaper of general circulation or the Official Gazette. 
Approved, 
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