FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
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EXPLANATORY NOTE 
The use of credit card has continually increased over the past decade as the marketing 
efforts of the banks stepped up. More and more professionals become comfortable in using credit 
cards in their everyday lives as shops expand their retail services to allow credit purchases. 
However, such increase in the use of credit cards has not been coupled with sufficient 
consumer education leading to frustration to consumers as well as bad financial management due 
to uninfonned payment strategies. The minimum payment rule of credit card allows the credit 
card users to prolong the full payment of their bills. But many credit card users avail of this 
option without fully understanding the repercussion of such decision. 
This bill seeks to reqUIre credit card compames to aid the credit card users III 
understanding the effects of paying only the minimum amount. 1 
I ThIS bill was originally filed in the Fourteenth Congress, Second Regular Session 


FIFTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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SENfsU8 
S. No. -"=--__ 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
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TO REQUIRE ENHANCED DISCLOSURE TO CONSUMERS REGARDING THE 
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CONSEQUENCES OF MAKING ONLY MINIMUM REQUIRED PAYMENTS IN THE 
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REP A YMENT OF CREDIT CARD DEBT 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
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SECTION 1. Short Title. - This A?t shall be known as the "Minimum Payment Effects 
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Disclosure Act" 
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SECTION 2. Additional Information Required on Credit Card Billing. - Information 
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regarding repayment of the outstanding balance of the consumer under the account, appearing in 
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conspicuous type on the front of the first page of each such billing statement, and accompanied 
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by an appropriate explanation, containing--
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A. the words "Minimum Payment Warning: Making only the llllillmum payment will 
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increase the amount of interest that you pay and the time it will take to repay your 
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outstanding balance"; 
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B. the number of years and months (rounded to the nearest month) that it would take for the 
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consumer to pay the entire amount of that balance, if the consumer pays only the required 
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minimum monthly payments; 
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C. the total cost to the consumer, shown as the sum of all principal and interest payments, 
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and a breakdown of the total costs in interest and principal, of paying that balance in full 
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if the consumer pays only the required minimum monthly payments, and if no further 
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advances are made; 
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D. the monthly payment amount that would be required for the consumer to eliminate the 
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outstanding balance in 36 months if no further advances are made; and 
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E. a toll-free telephone number at which the consumer may receive infonnation about 
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accessing credit counseling and debt management services. 
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SECTION 3. Interest Rate Applied Disclosure - In making the disclosures under Section 
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2, the creditor shall apply the interest rate in effect on the date on which the disclosure is made. 
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SECTION 4. Separability Clause. - If any provision or part hereof, is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and sUbsisting. 
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SECTION 5. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
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with the provision of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
Japm090508 
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