FOURTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
According to Article 3 Section 20 of the 1987 Constitution: 
“No person shall be imprisoned for debt or non-payment of a poll tax.” 
Numerous complaints have been made about how credit card companies, through their 
counsels or collection agencies, use unfair collection practices that range from harassment to 
borderline illegal. Although we do recognize their right to the amount that is due them, in the 
enforcement of this right they must observe good faith and reasonable conduct. This is in 
keeping with Article 19 of the Civil Code of the Philippines, which states that: 
“Every person must, in the exercise of his rights and in the performance of his duties, 
act with justice, give everyone his due, and observe honesty and good faith.” 
This bill addresses the concerns of numerous credit card holders. It also is a kindred 
spirit to Section 7 of BSP Circular No. 454, series of 2004. Both enumerate the ways by which 
credit card debtors are harassed and humiliated in the collection process. But this bill goes 
further by penalizing the prohibited acts through fines and revocation of licenses. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
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Third Regular Session 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT PROHIBITING CREDIT CARD DEBT-COLLECTION HARASSMENT 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assern bled: 
SECTION 1. Prohibited Unfair Collection Practices. - Collection agencies and 
collection attorneys, working as third-party or principal collectors, are prohibited from engaging 
in the following conducts: 
A) Communicating with the employer, relative or friends about the debtor, unless a court has 
given the collector the permission to do so; 
B) Contacting the debtor at work or at unreasonablehnconvenient times or hours which shall 
be defined as contact before 6:OO A.M. or after 1O:OO P.M; 
C) Falsely representing the character, amount, or legal status of the debt; 
D) Threatening to take actions that are illegal or not intended; 
E) Using obscenities, insults, or profane language; 
F) Using or threatening to use violence or other criminal means to harm the physical person, 
reputation, or property of any person; 
G) Repeatedly calling or visiting the debtor. 
SECTION 2. Penalty. - Upon conviction of a viola..m of this Act, a fine of One 
Hundred Thousand Pesos (Php 100,000.00) per occurrence shall be imposed. A subsequent 
violation shall be penalized with a fine of Five Hundred Thousand Pesos (PW 500,000.00) and 
revocation of the business or professional license of the collector. 
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modified accordingly. 
SECTION 3. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or 
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SECTION 4. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
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