Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 1828 
_____________________________________________________________ 
Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ 
EXPLANATORY NOTE 
We all know that a  credit card is a card issued to 
cardholders, customers and users of a bank or other financial 
institution designed to enable the cardholder to pay any 
commercial establishment for goods and services, based on 
the cardholder's assurance to the bank or card issuer to pay 
them for the amounts that they paid with the additional 
agreed 
interests 
and 
other 
charges. 
 Basically, 
credit 
cardholders borrow money from the bank or card issuer that 
issued credit cards to its customers, users and patrons and 
the bank grants a credit line  to its users, customers, patrons 
or cardholders. Simply put, it is a form of a cash advance by 
the cardholders from the bank or other financial institution 
issuing a credit card with the promise of paying the amount 
that they spent together with interests and other chargers. A 
credit card allows the consumers a continuing balance of debt, 
subject to interest being charged. It can also be used like 
money or currency by the owner of the card. A credit card 
typically involves a third-party entity, normally a bank or 
financial institution that pays merchant of goods and services 
and is reimbursed by the buyer plus interest and other 
charges.  
As our society is fast changing into a more modernized 
and technological community, the people now tend to favor 
transactions that are simpler, more convenient and efficient. 
Gone are the days where people need to have cash ready and 
available whenever they need to pay for something. With the 
advent of credit cards, there is now a safer way of paying 
almost anything we need. Nowadays, carrying money in our 
pockets have more often been regarded as disadvantageous, if 
July 14, 2025
11:34 am


not totally unnecessary. Indeed, there are some basic 
advantages offered by the use of credit cards as alternative for 
money. For one, while credit cards can be stolen, it is easily 
replaceable. The use of credit cards will become one of the 
acceptable ways to pay almost all kinds of goods and services. 
Using credit cards provides a convenient way to pay one’s 
purchases. Convenience is really what is being peddled by 
bank or credit card issuer. However, this convenience in 
commercial transactions have some form of quid pro quo more 
particularly in the use of credit card in conducting commercial 
or other business transactions. Bank and other financial 
institutions impose interest and other charges. Most of the 
banks or card issuer collect some form of annual membership 
fees, dues or joining fees to their credit cardholders, customers 
and/or users. The membership fees, dues or joining fees are 
on top of the interests and other charges that they imposed. 
Sometime banks and other credit card issuers impose 
unconscionable membership fees to their cardholders and 
customers. It is therefore about time to ease the financial 
burdern of credit card holders by mandating banks, financial 
instutitions and other credit card issuers to elminate the 
annual membership fees, dues and/or other joining fees that 
they impose to their customers.  
 ERIC L. OLIVAREZ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 1828 
_____________________________________________________________ 
Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ 
AN ACT 
MANDATING BANKS, FINANCIAL INSTITUTIONS AND 
OTHER CREDIT CARD ISSUERS TO ELIMINATE THE 
ANNUAL MEMBERSHIP FEES, DUES OR JOINING FEES 
FOR THEIR CREDIT CARDHOLDERS, USERS,    
CUSTOMERS AND PATRONS AND FOR OTHER PURPOSES 
Section 1. Short Title. This Act shall be known as the 
“No membership fees for Credit Cardholders Act of 2025”.  
Section 2. Section 2. Definition of Terms. For 
purposes of this Act, the following terms shall be used under 
the definition provided hereof, to wit: 
Credit Card - is a card issued to cardholders, customers 
and users of a bank or other financial institution designed to 
enable the cardholder to pay any commercial establishment 
for goods and services, based on the cardholder's assurance to 
the bank or card issuer to pay them for the amounts that they 
paid with the additional agreed interests and other charges. 
Card Holder, Credit Card User, Credit Card Customer and 
Credit Card Patron – is a person who is a holder of credit card 
that uses the same to pay any commercial establishment for 
goods and services with the promise of paying the bank, or 
financial institution or credit card issuer with the amount that 
he used plus interests and other charges. 
Credit Card Issuer – is a bank or other financial 
institution that issues credit cards to its customers, users and 
patrons. 


Membership fee – is an annual fee that is automatically 
imposed by the bank, financial institution or credit card issuer 
to its credit card holders, customers, patrons or credit card 
users for the purpose of issuing the credit card and for the 
benefits that come with it. This shall also include Membership 
Fees that are collected on installment basis by the card issuer 
within a particular calendar year.  
 
Joining fee – is a fee imposed by the bank financial 
institution or credit card issuer to its customers, credit car 
holders, patrons or credit card users upon joining or availment 
of the credit card benefits. 
 
Section 
3. 
Elimination 
or 
removal 
of 
annual 
membership fees, dues or joining fees. Banks, financial 
institutions and credit card issuers shall elimate or remove the 
imposition of annual membership fees, dues or joining fees to 
their customers, patrons or credit cardholders users as they 
already imposed interest and other charges to their credit 
cardholders upon the use thereof. 
 
Section 4. Limitation to the use of credit cards. No 
other person shall be allowed to use or utilize the credit cards 
issued under the name of a person other than himself or 
herself, for the payment of his or her purchases. 
 
Section 5. Confidentiality. No person may use or 
disclose any information relating to credit card transactions 
obtained pursuant to this Act other than for purposes directly 
related to the processing of related transactions, or the billing 
or collection of amounts charged pursuant thereto. 
 
Section 6.  Exceptions to the Confidentiality Rule. 
Section 3 of this Act may admit of certain exceptions, to wit: 
 
(a) Credit card issuers or others acting on behalf of such 
issuers may also use and disclose such information for 
purposes directly related to servicing an issuer’s accounts. 
(b) Credit card issuers or others directly involved in the 
processing of credit card transactions or the billing or 
collection of amounts charged thereto may also use and 
disclose such information for purposes directly related to— 
(1) statistical risk and profitability assessment; 
(2) transferring receivables, accounts, or interest therein; 
(3) auditing the account information; and 
(4) complying with the laws of the Philippines or any valid 
court order pursuant to a criminal investigation. 


Provided, that the use and disclosure of information 
under this paragraph shall be made only to the extent 
authorized by written procedures, rules and regulations 
promulgated by Banko Sentral ng Pilipinas (BSP). 
 
Section 7. Penalty imposed against Banks, Financial 
institutions or Credit card issuers. Any bank, financial 
institution or credit card issuer that imposes annual 
membership fees, dues or joinng fees to their credit card 
holders, customers, patrons and/or user shall be liable for a 
fine 
of 
P100,000.00 
for 
every 
imposition 
of 
annual 
membership fees against its cardholders.  
  
Section 8. Exclusive Jurisdiction of Bangko Sentral 
ng Pilipinas. The Bangko Sentral ng Pilipinas (BSP) shall 
have exclusive jurisdiction over all complaints of violation of 
the provisions of this act.  
 
Section 9. Implementing Rules and Regulations. The 
BSP shall promulgate the Implementing Rules and Regulations 
to carry out the provisions of this Act.  Such rules and 
regulations shall take effect upon their publication in three (3) 
newspapers of general circulation. 
 
Section 10. Repealing Clause. – All laws, presidential 
decrees, letters of instructions, executive orders, rules and 
regulations insofar as they are inconsistent with this Act, are 
hereby repealed or amended as the case may be. 
 
Section 11. Separability Clause. – In the event that 
any provision of this Act or any portion thereof is declared 
unconstitutional by a competent court, the other provisions 
shall not be affected thereby and shall remain valid and 
enforceable. 
 
Section 12. Effectivity Clause. – This Act shall take 
effect after its complete publication in at least three (3) 
newspapers of general circulation. 
 
 
APPROVED.