EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
s. No. 1504
d ii)t m'XiU. T
20 m-A[ P4S6
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
AMENDING REPUBLIC ACT NO. 9510, OTHERWISE KNOWN AS THE 
"CREDIT INFORMATION SYSTEM ACT" BY PROVIDING CREDIT 
PROTECTION TO BORROWERS DURING CALAMITIES AND OTHER 
EMERGENCIES
EXPLANATORY NOTE
The full extent of the Coronavirus Disease (COVID-19) pandemic and the 
accompanying lockdown cannot be accurately measured as of the moment. But for 
the lower- to middle-class families, for the minimum-wage, no-work-no-pay laborers, 
for owners of small businesses, among others, its devastating effects are painfully 
felt. The lockdown spelled a reversal on their fortunes, with no source of living or 
steady income for almost two months already. Some have resorted to availing of 
government subsidies and assistance just to tide over the Enhanced Community 
Quarantine (ECQ) period. The uncertainty of the future and the improbability of an 
immediate return to normalcy looms over to even worsen their dire conditions.
The shutting down of businesses and the suspension of work put the finances 
of workers and owners of micro, small and medium enterprises (MSMEs) in the red. 
They are now prone to being delayed in paying their bills, loan amortizations, 
insurance premiums and other financial obligations. Some may even be forced to 
default or declare bankruptcy. To address this, the Legislature has included in the 
provisions of Republic Act No. 11469 or the "Bayanihan to Heal as One Act" the


implementation of a minimum of 30-day grace period for the payment of all loans, 
without incurring interests, penalties, fees or other charges1.
This bill seeks to provide more financial protection to borrowers adversely 
affected by major calamities or emergencies. This proposes to insert a provision in 
Republic Act No. 9510, or the "Credit Information System Act", which will 
institutionalize a moratorium on the reporting of negative information during 
calamities or emergencies. Negative credit information, as defined in the Credit 
Information System Act, refers to "information/data concerning the poor credit 
performance of borrowers such as, but not limited to, defaults on loans, adverse 
court judgments relating to debts and reports on bankruptcy, insolvency, petitions or 
orders on suspension of payments and corporate rehabilitation"2. Through this 
amendment, missed due dates, partial payments or non-payments that occurred 
during the period from the declaration of an existence of a State of National 
Calamity or Emergency as declared by the President of the Philippines until thirty 
(30) days from the termination thereof, will not be tagged as "defaults" or otherwise 
reported as negative credit information. This moratorium will likewise apply to 
provincial, city or municipal state of calamity in favor of borrowers residing in the 
affected local government unit or having their place of occupation or business 
thereon. This bill also contains a retroactivity clause in favor of borrowers adversely 
affected by the current COVID-19 pandemic and lockdown.
It is worthy to note that the Credit Information Corporation, in light of the 
COVID-19 pandemic, had enacted an advisory/instruction3 similar to a reporting 
moratorium envisioned by this proposed measure. This bill aims to institutionalize 
this practice by incorporating it in the law itself and to make it apply to all kinds of 
calamities and emergencies.
A fair and accurate report of a borrower's credit status must not include 
delayed payments, partial payments, defaults or other negative information that was
1 Sec. 4(aa), Republic Act No. 11469
2 Sec. 3(j), Republic Act No. 9510
https://ww.creditinfo.gov.ph/sites/default/files/Letter%20Memorandum%20-
%20Credit%20Data%20Submission%20and%20Tagging%20oP/o20Non-
Payments%20as%20Default%20During%20Covidl9%20Pandemic.pdf


brought about, or necessitated by, or had occurred on the occasion of disasters, 
caiamities and public emergencies.
In view of this, early passage of this bill is sought.
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
; 
i 
C A k V
iii ti)C l&i a'-tf !'|
SENATE
20 HAY-4
1504
S. No.
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
AMENDING REPUBLIC ACT NO. 9510, OTHERWISE KNOWN AS THE 
"CREDIT INFORMATION SYSTEM ACT", BY PROVIDING CREDIT 
PROTECTION TO BORROWERSDURING CALAMITIES AND OTHER 
EMERGENCIES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
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SECTION 1. A new SECTION 4-A shall be added to Republic Act No. 9510, 
otherwise known as the "Credit Information System Act", to read as follows:
SECTION 4-A. MORATORIUM ON THE REPORTING OF 
NEGATIVE CREDIT INFORMATION DURING CALAMITIES OR 
EMERGENCIES. - NO SUBMITTING AGENCY MAY FURNISH 
ANY NEGATIVE CREDIT INFORMATION (EXCEPT 
INFORMATION RELATED TO A CRIMINAL CONVICTION) 
RELATING TO A BORROWER THAT WAS THE RESULT OF ANY 
ACTION OR INACTION THAT OCCURRED DURING THE PERIOD 
FROM THE DECLARATION OF AN EXISTENCE OF A STATE OF 
NATIONAL CALAMITY OR EMERGENCY AS DECLARED BY THE 
PRESIDENT OF THE PHILIPPINES UNTIL THIRTY (30) DAYS 
FROM THE TERMINATION THEREOF.


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THE SAME MORATORIUM SHALL LIKEWISE APPLY TO A 
PROVINCIAL, CITY OR MUNICIPAL STATE OF CALAMITY AS 
DECLARED BY THE RESPECTIVE LOCAL GOVERNMENT UNIT; 
PROVIDED, THAT THE MORATORIUM SHALL ONLY APPLY TO 
BORROWERS RESIDING IN THE AFFECTED LOCAL 
GOVERNMENT UNIT OR HAVING THEIR PLACE OF 
OCCUPATION OR BUSINESS THEREON.
Section 2. Retroactivity Ciause for Borrowers affected by the COVID-19 Pubiic 
Heaith Emergency. - The moratorium granted by this Act shall retroactively apply to 
borrowers affected by the State of Public Health Emergency declared by the 
President of the Philippines in connection with the 2020 Coronavirus Disease 
(COVID-19) pandemic. The Credit Information Corporation is hereby mandated to 
enact measures:
a. to receive requests from borrowers for the deletion of any reported 
negative information that will be covered by the moratorium;
b. to act upon such requests within a period of fifteen (15) days from 
receipt thereof; and
c. to notify the requesting borrower of its action.
Section 3. Impiementing Ruies and Reguiations. - Within sixty (60) days from 
the effectivity of this Act, the Securities and Exchange Commission and the Credit 
Information Corporation, in consultation with other relevant government agencies 
and stakeholders, shall issue the necessary rules and regulations to implement the 
provisions of this Act.
Section ^.Repeating Ciause. —All laws, presidential decrees, executive orders, 
proclamations, rules and regulations, or any part thereof, which are inconsistent with 
the provisions of this Act are hereby repealed or modified accordingly.
Section 5. Separabiiity Ciause. - If any provision or part of this Act, or the 
application thereof to any person or circumstance, is held unconstitutional or invalid.


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the remainder of this Act shaii not be affected thereby.
Section ^.Eifactivity Ciause. — This Act shaii take effect fifteen (15) days 
from its pubiication in the Officiai Gazette or in at ieast two (2) newspapers of 
generai circuiation.
Approved,