FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
Second Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
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 
coiisuiner education leadiug to frustration to consumers as well as bad financial manageinent due 
to uninformed payment strategies. The minimum paymcnt rule of credit card allows the credit 
card users to prolong the full payment o f  their bills. But many credit card users avail of this 
option without fully understanding the repercussion o f  sucli decision. 
This bill seeks to require credit card companies to aid the credit card users in 
understanding the effects of paying only the minimum amount. 


5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
FOURTEENTH CONGRESS OF THE REPUB1,TC) 
OF THE PHILIPPINES 
1 
e x r i i  
: 
Second Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO REQUIRE ENHANCED DISCLOSURE TO CONSUMERS REGARDING THE 
CONSEQUENCES OF MAKING ONLY MINIMUM REQUIRED PAYMENTS IN THE 
REPAYMENT OF CREDIT CARD DEBT 
Be it enacted by (he Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Minimum Payment Effects 
Disclosure Act.” 
SECTION 2. Additional Information Required on Credit Card Billing. - 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, containing- 
A. 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”; 
B. 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; 
C. the total cost to the consumer, shown as the sum of all principal and interest payments, 
and a 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; 
D. 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 


1 
2 
3 
4 
8 
9 
10 
11 
12 
E. a toll-free telephone number at which the consumer may receive information about 
accessing credit counseling and debt management services. 
SECTION 3. Interest Rute Applied Disclosure - In making the disclosures under Section 
2, the creditor shall apply the interest rate in effect on the date on which the disclosure is made. 
SECTION 4. Separability Clause. - 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 5. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrativc order, rule or regulation contrary to or is inconsistent 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 6. Efectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
13 
Approved, 
iaprn090508 
2