Sixteenth Congress of the 
Republic of the Philippines 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1018 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
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JUL 22 P 3 :02 . 
Credit cards are becoming more and more prevalent in Philippines. This was 
once a commodity often limited to those in the upper-crust of SOCiety or the jetsetters 
who first picked up on the famous western habit of credit card use. Slowly but ever 
increasingly, the lure of deferring payment for products and services through this little 
plastic wonder has caught the attention of the masses. And why not? It is after all a 
convenient way of shopping or instantly purchasing items on a whim and stretching the 
obligation of payment for months or even years. 
To date, credit card companies are continually making it easier for the common 
man to secure a credit card. They have lowered their requirements for applications, 
sped up the process and tirelessly barrage the public with commercials and ingenious 
marketing strategies. Most of us fall prey to this without fully understanding the 
underlying obligations we have subsequently subjected ourselves to. A sizable amount 
of our fellowmen are now knee deep in debt simply because credit card interest rates 
and other hidden charges that were either unclear or was not fully understood by them. 
It is our responsibility as legislators to provide the proper framework for these 
companies that offer credit cards and other access device transactions. There is no law 
in our country at the moment that specifically addresses this specific type of service, 
and as a result, these companies virtually have a carte blanche on interest rates and 
surcharges they impose on their customers. This measure also calls for more 
transparency on the part of the credit card companies to ensure that the consumer is 
more aware of the scope of his debt/obligations to the company. It is for these that I 
urge my colleagues for the passage of this bill. 
ON BONG REVILLA, JR. 


Sixteenth Congress of the 
Republic of the Philippines 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1018 
Introduced by Senator Ramon Bong Revilla,j~. 
AN ACT 
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'13 
JUL 22 
P.1 :02 
GOVERNING CREDIT CARD AND OTHER ACCESS DEVICE TRANSACTIONS 
AND PROVIDING PENALTIES THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Title. - This Act shall be known as the "Credit Card and Other Access 
Device Act of 2013." 
Section 2. Declaration of Policy. -
The State shall simplify, clarify and 
modernize the laws governing credit transactions and encourage the development of 
fair and economically sound consumer credit practices. The State shall promote the 
general welfare of the people by protecting the privacy of consumers in commercial 
transactions involving the use of credit cards. The State shall assure the full disclosure 
of the true cost of credit to the user. The State shall protect the economic interest of the 
people by assuring that only reasonable interest rates and surcharges will be imposed 
on credit card transactions, as well as prohibit hidden, charges on credit card 
transactions. 
Section 3. Definition of Terms. - As used in this Act, the term: 
a. "Credit Card" - means any instrument or device, whether known as a credit card, 
credit plate, coupon book or other card device issued with or without fee by an 
issuer, existing for the purpose of obtaining money, property, labor, services, or 
anything of value on credit. It shall not include a check guarantee card 
b. "Open - End - Credit - Plan" - means a consumer credit extended to an account 
pursuant to a plan under which; 
1. The creditor may permit the cardholder to make purchases or obtain loans, 
from time to time, directly from the creditor or indirectly by the use of credit 
card; 
2. The person has the privilege of paying the balance; and 
3. A finance charge may be computed by the creditor from time to time on an 
outstanding unpaid balance. 
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c. "Access Device" - means any card, plate, code, account number, electronic 
serial number, personal identification number, or other telecommunications 
service, equipment, or instrumental identifier, or other means of account access 
that can be used alone or in conjunction with another access device, to obtain 
money, goods, services, or any other thing of value, or that can be used to 
initiate a transfer of fund (other than a transfer originated solely by paper 
instrument); 
d. "Counterfeit Access Device" -
means any access device that is counterfeit, 
fictitious, altered, or forged, or an identifiable component of an access device or a 
counterfeit access device; 
e. "Unauthorized Access Device" - means any device that is lost, stolen, expired, 
revoked, cancelled, or obtain with intent to defraud; 
f. 
"Produce" - includes design, alter, authenticate, duplicate, or assemble; 
g. "Traffic" - means transfer or otherwise dispose of, to another, or to obtain control 
of with intent to transfer or dispose of; 
h. 
"Device-making equipment" -
means any equipment, 
mechanism, 
or 
impression designed or primarily used for making an access device or a 
counterfeit access device; 
i. 
"Credit Card System Member" - means a financial institution or other entity that 
is a member of a credit card system, including an entity, whether affiliated with or 
identical to the credit card issuer, that is the sole member of a credit card system; 
j. 
"Scanning Receiver" - means a device or apparatus that can be used to intercept 
a wire or electronic communication; 
k. "College Student Credit card Account" - means a credit card account under an 
open-end consumer credit plan established or maintained for or on behalf of any 
college student; 
I. 
"College Student" - means an individual: 
1. Who is a full-time student attending an institution of higher education; and 
2. Who has not yet attained the age of 21. 
m. "Institution of Higher Education" -
means institutions offering tertiary degree 
programs and post secondary programs; 
n. "Tertiary Degree Programs" -
refer to courses of study leading to masters, 
doctors or similar degrees. It also includes courses of study which by themselves 
may be only for one, two, or three-year courses of study leading to less than a 
bachelor's degree program, but which can subsequently be credited in full 
bachelor's degrees. 
Section 4. Privacy and Fraud. -
a. No person, firm, partnership, corporation, or other business entity that 
accepts a credit card for a business transaction shall write, cause to be 
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written. or require that a credit card holder write personal identification. not 
required by the credit card issuer, on the credit card transaction form. 
Personal identification information shall include, but shall not be limited to a 
credit card holder's address or telephone number. 
b. Acts of fraud and related activity in connection with access devices are 
hereby prohibited, such as those who shall: 
1. Knowingly and with intent to defraud uses or traffics in one or more 
counterfeit access devices; 
2. Knowingly and with intent to defraud uses or traffics in or uses any 
unauthorized device, and by such conduct obtains anything of value; 
3. Knowingly and with intent to defraud, produces any counterfeit access 
device or any unauthorized access device; 
4. Knowingly and with intent to defraud, produces, traffics in, has control or 
custody of, or possesses device-making equipment; 
5. Knowingly and with intent to defraud, uses, produces, traffics in, has 
control or custody of, or possesses a telecommunications device; 
6. Knowingly and with intent to defraud, uses, produces, traffics in, has 
control or custody of, or possesses: 
a. A scanning receiver; or 
b. Hardware 
or 
software 
used 
for 
altering 
or 
modifying 
telecommunications instruments to obtain unauthorized access to 
telecommunications devices 
7. Knowingly and with intent to defraud effects transactions, with one or more 
access devices issued to another person or persons, to receive payment 
or any other thing of value; 
8. Without authorization of the issuer of the access device, knowingly and 
with intent to defraud, solicits for the purpose of: 
a. Offering an access device; or 
b. Selling information regan::ling an application to obtain an access 
device; or 
9. Without the authorization of the credit card system member or its agent, 
knowingly and with intent to defraud causes or arranges for another 
person to present to the member or its agent, for payment, one or more 
evidence or records of transactions made by an access device; 
c. The provisions of this section shall apply to all credit card transactions; 
provided, however, that the provisions of this section shall not be construed to 
prevent a person, firm, partnerships, corporations, or other business entity 
from requesting information that is necessary for shipping, delivery, or 
installation or purchased merchandise or services or for a warranty when 
such information is provided voluntarily by a credit holder. In addition, the 
provisions of this section shall not be construed to prohibit a person, firm, 
partnership[, corporation or other business entity from requesting one or 
additional identification cards to confirm the identity of the credit card user. 
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Section 5. Notice and Minimum Payments. -
a. In the case of any credit card under an open-end-credit-plan, no increase in any 
annual percentage rate of interest shall be allowed except an increase due solely 
to a change in another rate of interest to which such rate is indexed or an 
increase due to the expiration of any introductory percentage rate of interest 
applicable to any outstanding balance of credit under such plan; and no change 
in the index used to determine any such annual percentage rate of interest shall 
likewise take effect before the end of the ninety (90) day period beginning on the 
date of notice of such increase or change in index is first provided to the 
consumer. 
b. If, after receiving a notice with respect to any credit card account under an open-
end-credit-plan, a consumer cancels the credit card account before the end of 
the ninety (90) day period, the following shall be observed: 
1. An annual percentage rate of interest applicable after the cancellation with 
respect to the outstanding balance on such account as of the date of 
cancellation may not exceed any annual percentage rate or interest 
applicable with respect to such balance under the terms and conditions in 
effect before the cancellation; and 
2. The repayment of such outstanding balance after the cancellations shall be 
subject to all other terms and conditions with respect to such account before 
the cancellation. 
c. The notice referred to with respect to an increase in any annual percentage rate 
of interest or any change in an index shall be made in a clear and conspicuous 
manner and shall contain a brief statement of the rights of the consumer. 
1. To cancel the account before the effective date of the increase or change in 
index; and 
2. After such cancellation, to pay any balance outstanding on such account at 
the time of the cancellation in accordance with the terms and conditions in 
effect before the cancellation. 
d. Additional information regarding repayment of the outstanding balance of the 
consumer under the account, appearing in conspicuous type on the front of the 
first page of each such billing statement, and accompanied by an appropriate 
explanation, shall contain: 
1. The words "Minimum Payment Warning: Making only the minimum payment 
will increase the amount of interest that you pay and the time it will take to 
repay your outstanding balance; 
2. The number of years and months (rounded to the nearest month) that it would 
take for the consumer to pay the entire amount of that balance, if the 
consumer pays only the required minimum monthly payments; 
3. The total cost to the consumer, shown as the sum of all principal and interest 
payments, and the breakdown of the total costs in interest and principal, of 
paying that balance in full if the consumer pays only the required minimum 
monthly payments, and if no further advances are made; 
4. The monthly payment amount that would be required for the consumer to 
eliminate the outstanding balance in 36 months if no further advances are 
made; and 
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5. A toll-free number at which the consumer may receive information about 
accessing credit counseling and debt management services. 
Section 6. Imposable Interest Rates and Charges. -
a. Interest rates imposed on any credit card on purchases and cash advances 
made through such facility shall in no case be higher than 1% per month or 12% 
per annum, without compounding; 
b. Surcharges or penalties shall likewise be limited to a ceiling of 1% per month, 
without compounding; 
c. No other costs shall be imposed other than the foregoing except for reasonable 
attorney's fees and expenses of collection completely disclosed to, sufficiently 
understood by and voluntarily agreed with by an applicant for a credit card; 
d. The pertinent provisions of the Truth in Lending Act shall apply suppletorily 
insofar as relevant and complimentary to the provisions of this Act. 
Section 7. Student Credit Card Protection. -
a. Unless a parent, legal guardian, or spouse of a college student assumes joint 
liability for debts incurred by the student in connection with a college student card 
account; 
1. No credit card issuer shall grant a college student card account where the 
credit limit for that account exceeds, during a full calendar year; 
a. Twenty percent (20%) of the annual gross income of the student, if any; or 
b. Fifteen thousand pesos (P15,000.OO), whichever is greater; and 
2. No credit card issuer shall grant a student a credit card account, if the credit 
limit for that credit card account, combined with the credit limit of any other 
credit card accounts held by the student, would exceed thirty percent (30%) of 
the annual gross income of the student, if any, in the most recently completed 
calendar year. 
b. No increase shall be made in the amount of credit authorized to be extended 
under a college student credit card account for which a parent, legal guardian, or 
spouse of the consumer has assumed jOint liability, unlass such parent, guardian, 
or spouse, as the case may be, approves in writing, and assumes joint liability 
for, such increase. 
c. For purposes of this Act, a credit card issuer shall require adequate proof of 
income, income history, and credit history, subject to the rules of the Monetary 
Board of the Bangko Sentral ng Pilipinas, before any college student credit card 
account may be opened by or on behalf of a student. 
d. No credit card issuer may open a credit card account for, or issue any credit card 
to, any col/ege student who: 
1. Has no verifiable annual gross income; and 
2. Already maintains a credit card under an open-end-consumer credit plan with 
that credit card issuer; or any affiliation thereof. 
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e. The Monetary Board of the Bangko Sentral ng Pilipinas may, by rule, provide for 
exemptions to the provisions of this subsections, as deemed necessary or 
appropriate and consistent with the purpose of this Act. 
Section 8. Penalties. -
a. Any violation of the provisions of this Act shall be punishable by a penalty of 
imprisonment of arretso mayor or a fine ranging from Fifty Thousand Pesos 
(P50,OOO.OO) to One Hundred Thousand Pesos (P1OD,DDD.DD), or both, 
depending upon the gravity of the act committed and the circumstances 
attendant thereto as may be determined by the court. 
b. If the entity responsible for the prohibited act is a corporation, trust or firm, 
partnership, association, or any other entity, the penalty or imprisonment shall be 
imposed on the entity's responsible officers, including, but not limited to, the 
preSident, vice-president, chief executive officer, general manager, managing 
director or partner directly responsible therefor. 
c. In case the violation is committed by, or in the interest of a foreign juridical 
person duly licensed to engage in business in the Philippines, such license to 
engage in business in the Philippines shall immediately be revoked. 
Section 9. The National Bureau of Investigation (NBI) shall, in addition to any 
other agency having such authority, have the authority to investigate offenses under this 
Act. 
Section 10. Any person who engages in the conduct of any trade or commerc!3 
and who suffer any loss or money or property, real or personal, as a result of the use or 
employment by another person who engages in any act prescribed in this Act may bring 
in court, without prejudice to the criminal liability provided for in this Act, whether by way 
of original complaint, counterclaim, cross-claim, or third party action for damages and 
such equitable relief, including an injunction, as the court deems to be necessary and 
proper. Such person, if he has not suffered any loss of money or property, may obtain 
such an injunction if it can be shown that the aforementioned unfair method of 
competition, act or practice may have the effect of causing such loss of money or 
property. 
For purposes of this section, the injured party has one (1) year from the date of 
the cause of action arises to file the appropriate complaint. 
Section 11. If any provision or part hereof, is held invalid or unconstitutional, the 
remainder of the law or the provision not otherwise affected shall remain valid and 
subsisting. 
Section 12. Any law, presidential decree or issuance, executive order, letter of 
instruction, administrative order, rule or regulation contrary to, or inconsistent with the 
provision of this Act is hereby repealed, modified, or amended accordingly. 
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Section 13. This Act shall take effect fifteen (15) days after its publication in at 
least two (2) newspaper of general circulation or the Official Gazette. 
Approved, 
7