SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'1) 
AUG 15 P 3 :09 
SENATE 
S. No. 1312 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The use of credit cards has continuaJly 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 uninformed payment strategies. The minimum payment rule of credit cards allows 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 companies to aid the credit card users m 
understanding the effects of paying only th~ minimum amount.' 
, This bill was originally filed in the Fourteenth Congress, Second Regular Session. 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1312 
1 
AN ACT 
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"13 
/lUG 15 P3 :09 
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REQUIRING 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 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act 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 Statement. -
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Information regarding repayment of the outstanding balance of the consumer under the account, 
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appearing in conspicuous type on the front of the first page of each such billing statement, and 
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accompanied by an appropriate explanation, containing-
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A. 
The words "Minimum Payment Warning: Making only the minimum payment 
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will 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/or months (rounded to the nearest month) that it would 
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take for the consumer tei pay the entire amount of that balance, if the consumer pays only the 
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required minimum monthly payments; 
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C. 
The total cost to the consumer, shown as the sum of all principal and interest 
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payments, and a breakdown of the total costs in interest and principal, of paying that balance in 
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full if the consumer pays only the requir9d 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 
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eliminate the outstanding balance in thirty-six (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 information 
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about 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 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. 
Approved, 
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