SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.B. No. 1704 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 3, Section 20 provides: 
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SEP 17 P 3 :58 
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 CircuilU' 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. ' 
• This bill was originally filed in the 14th Congress. 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SEN~W 
S.B. No. 1 "104 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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SEP 17 P 3 :58 
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 
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court has given the collector the permission to do so; 
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B) 
Contacting the debtor at work or at unreasonable/inconvenient times or hours 
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which shall be defined as contact before 6:00 A.M. or after 10:00 P .M; 
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C) 
D) 
E) 
F) 
Falsely representing the character, amount, or legal status of the debt; 
Threatening to take actions that are illegal or not intended; 
Using obscenities, insults, or profane language; 
Using or threatening to use violence or other criminal means to harm the physical 
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person, 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 (PI00,000.00) per occurrence shall be imposed. A subsequent 
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violation shall be penalized with a fine of Five Hundred Thousand Pesos (P500,000.00) and 
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revocation ofthe business or professional license ofthe 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 at least two (2) newspapers of general circulation. 
Approved, 
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