, 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
HI 
"iJG -.3 A 9 :'5!) 
SENATE 
S.B.No. 
2297 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 3, Section 20 provides: 
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 ampunt 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 oUhe 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 biJ1 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 oflicenses.' 
• This bill was originally filed in the 14'h Congress. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
• SENATE 
S.B. No. 2297 
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 
assembled: 
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SECTION 1. Prohibited Unfair Collection Practices. Collection agencies and 
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collection attorneys, working as third-party or principal collectors, are prohibited from engaging 
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in the following conducts: 
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A) Communicating with the employer, relative or friends about the debtor, unless a court has 
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given the collector the permission to do so; 
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B) Contacting the debtor at work or at umeasonable/inconvenient times or hours which shall 
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be defined as contact before 6:00 A.M. or after 10:00 P.M; 
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C) Falsely representing the character, amount, or legal status of the debt; 
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D) Threatening to take actions that are illegal or not intended; 
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E) Using obscenities, insults, or profane language; 
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F) Using or threatening to use violence or other criminal means to harm the physical person, 
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reputation, or property of any person; 
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G) Repeatedly calling or visiting the debtor. 
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SECTION 2. Penalty. Upon conviction of a violation of this Act, a fine of One 
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Hundred Thousand Pesos (Php 100, 000.00) per occurrence shall be imposed. A subsequent 
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violation shall be penalized with a fine of Five Hundred Thousand Pesos (PhP 500,000.00) and 
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revocation of the business or professional license of the collector. 
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SECTION 3. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
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parts thereof inconsistent with the provisions of this Act are hereby repealed, amended or 
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modified accordingly. 
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SECTION 4. Effectivity Clause. - This Act shall take effect after fifteen (15) days 
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following its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
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