· . 
'senutl' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
<Off,;, .r t~, ,:hml"'ij 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
SEP 1B P4 :02 
SENATE 
S. No. 1712 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Every technological breakthrough changes the procedure in transacting business. The 
payment of bills, whether it be for utilities, groceries, gasoline,' medicine, or any other item, can 
now be made through a credit card, automated teller machine card, or by telephone. 
The use of electronic systems to transfer funds has provided substantial benefits to 
consumers. However, due to the characteristics of such systems, the application of existing 
consumer protection legislation is unclear. The rights and liabilities of consumers, financial 
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institutions, and intermediaries in electronic fund transfers are undefined. 
This bill seeks to establish the rights, liabilities, and responsibilities of participants in 
electronic fund transfer systems.' 
Lw" ~~: ... "'" .h_~ 
MIRIAM DEFIfSOR s~mf-10 ' 
pJJi' 
, This bill was originally filed during the Fourteenth Congress, First Regular session, 
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, 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 17] 2 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
DEFINING THE RIGHTS AND LIABILITIES OF PARTIES IN 
ELECTRONIC FUND TRANSFERS 
..§rm,h' 
(~H';r of HI' >m.t"'~ 
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SEP 18 P 4 :02 
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 "Electronic Fund Transfer 
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Act." 
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SECTION 2. Declaration of Policy. - It is the policy of the State to promote commercial 
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transactions. Toward this end, the State shall enact measures to protect the rights and define the 
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liabilities of parties in commercial transactions. 
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SECTION 3. Definitions. - As used in tbis Act, the term-
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(A) 
"Accepted card or other means of access" means a card code or other means of 
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access to a consumer's account for the purpose of initiating electronic fund transfers when the 
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person, to whom such card or other means of access was issued, has requested and received, or 
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has signed or has used, or authorized another to use, such card or other means of access for tbe 
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purpose of transferring money between accounts or obtaining money, property, labor, or 
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services; 
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(B) 
"Account" means a demand deposit, savings deposit, or other asset account (other 
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than an occasional or incidental credit balance in an open end credit plan), as described in 
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regulations of the Board, established primarily for personal, family, or household purposes, but 
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such term does not include an account held by a financial institution pursuant to a bona fide trust 
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agreement; 
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(C) 
"Board" means the Board of Governors ofthe Bangko Sentral ng Pilipinas; 
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(D) 
"Business day" means any day on which the offices of the consumer's financial 
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institution involved in an electronic fund transfer are open to the public for carrying on 
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substantially all of its business functions; 
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(E) 
"Consumer" means a natural person; 
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(F) 
"Electronic fund transfer" means any transfer of funds, other than a transaction 
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originated by check, draft, or similar paper instrument, which is initiated through an electronic 
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terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct or authorize 
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a financial institution to debit or credit an aCCOlmt. Such term includes" direct deposits or 
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withdrawals offunds, and transfers initiated by telephone. 
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Such term does not include-
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(I) 
any check guarantee or authorization service which does not directly result 
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in a debit or credit to a consumer's account; 
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(2) 
any transfer of funds, other than those processed by automated 
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clearinghouses, made by a financial institution on behalf of a consumer by 
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means of a service that transfers funds held at either banks or other 
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depository institutions and which is not designed primarily to transfer 
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funds on behalf of a consumer; 
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(3) 
any transaction the primary purpose of which is the purchase or sale of 
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securities or commodities through a broker-dealer registered with or 
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regulated by the Securities and Exchange Commission; 
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(4) 
any automatic transfer from a savings account to a demand deposit 
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account pursuant to an agreement between a consumer and a financial 
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institution for the purpose of covering an overdraft or maintaining an 
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agreed upon minimum balance in the consumer's demand deposit account; 
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or 
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(5) 
any transfer of funds which is initiated by a telephone conversation 
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between a consumer and an officer or employee of a financial institution 
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which is not pursuant to a pre-arranged plan and tmder which periodic or 
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recurring transfers are not contemplated; 
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(0) 
"Electronic terminal" means an electronic device, other than a telephone operated 
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by a consumer, through which a consumer may initiate an electronic fund transfer. Such term 
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includes, but is not limited to, point-of-sale terminals, automated teller machines, and cash 
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dispensing machines; 
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(H) 
"Financial institution" means a bank, a savings and loan association, a mutual 
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savings bank, a credit union, or any other person who, directly or indirectly, holds an account 
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belonging to a consumer; 
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(1) 
"Pre-authorized electronic fund transfer" meanS an electronic fund transfer 
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authorized in advance to recur at substantially regular intervals; 
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(J) 
"Unauthorized electronic fund transfer" means an electronic fund transfer from a 
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consumer's account initiated by a person other than the consumer without actual authority to 
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initiate such transfer and from which the consumer receives no benefit, but the term does not 
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include any electronic fund transfer-
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(I) 
initiated by a person other than the consumer who was furnished with the 
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card, code, or other means of access to such consumer's account by such 
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consumer, unless the consumer has notified the financial institution 
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involved that transfers by such other person ax no longer authorize; 
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(2) 
initiated with fraudulent intent by the consumer or any person acting in 
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conceit with the consumer; or 
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(3) 
which constitutes an error committed by a financial institution. 
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SECTION 4. Regulations. -
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(A) 
The Board shall prescribe regulations to carry out the purposes of this Act. In 
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prescribing such regulations, the Board shall: 
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(I) 
consult with the other affected agencies and take into account and allow 
for, the continuing evolution of electronic banking services and the 
technology utilized in such services. 
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(2) 
prepare an analysis of economic impact which considers the costs and 
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benefits to financial institutions, consumers, and other users of t;lectronic 
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flJl1d transfers, including the extent to which additional documentation, 
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reports, records, or other paper work would be required, and the effects 
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upon competition in the provision of electronic banking services among 
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large and small financial institutions and the availability of such services 
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to different classes of consumers, particularly low income consumers, 
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(3) 
to the extent practicable, the Board shall demonstrate that the consumer 
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protections of the proposed regulations outweigh the compliance costs 
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imposed upon consumers and financial institutions; and 
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(a) 
Any proposed regulations and accompanying analyses shall be sent 
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promptly to Congress by the Board. 
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(b) 
The Board shall issue model clauses for optional use by financial 
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institutions 
to 
facilitate 
compliance 
with 
the 
disclosure 
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requirements of the following section and to aid consumers in 
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understanding the rights and responsibilities of participants in 
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electronic fund transfers by utilizing readily understandable 
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langliage. With respect to the disclosures required _by Section 5, the_ 
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Board shall lake account of variations in the services and charges 
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under different electronic fund transfer systems and, 
as 
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appropriate, shall issue alternative model clauses for disclosure of 
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these differing account terms. 
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(c) 
Regulations prescribed hereunder may contain such classifications, 
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differentiations, or other provisions, and may provide for such 
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adjustments and exceptions for any class of electronic fund 
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transfers, as, in the judgment of the Board, are necessary or proper 
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to effectuate the purposes of this Act, to prevent circumvention or 
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evasion thereof, or to facilitate compliance therewith. This Board 
shall by regulation modify the requirements imposed by this Act 
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on small financial institutions if the Board determines that such 
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modifications are necessary to alleviate any undue compliance 
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burden on small financial institutions and such modifications are 
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consistent with the purpose and objective of this subchapter. 
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(d) 
In the event that electronic fund transfer services are made 
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available to consumers by a person other than a financial 
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institution holding a consumer's account, the Board shall by. 
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regulation assure that the disclosures, protections, responsibilities, 
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and remedies created by this Act are made applicable to such 
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persons and services. 
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SECTION 5. Terms and Conditions a/Transfers. -
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(A) 
The terms and conditions or electronic fund transfers involving a consumer's 
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account shall be disclosed at the time the consumer contracts for an electronic fund transfer 
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service, in accordance with regulations of the Board. Such disclosures shall be in readily 
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understandable language and shall include, to the extent applicable -
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(I) 
the consumer's liability for unauthorized electronic fund transfers and, at 
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the financial institution's option, notice or the advisability of prompt 
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reporting of any loss, theft, or unauthorized use of a card, code, or other 
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means of access; 
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(2) 
the telephone number and address of the person or office to he notified in 
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the event the consumer believes that an unauthorized electronic fund 
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transfer has been or may be effected; 
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(3) 
the type and nature of electronic fund transfers which the consumer may 
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initiate, including any limitations on the frequency or dollar amount of 
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such transfers, except that the details of such limitations need not be 
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disclosed if their confidentiality is necessary to maintain the security of an 
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electronic fund transfer system, as determined by the Board; 
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(4) 
any charges for electronic fund transfers or for the right to make such 
transfers; 
(5) 
the consumer's right to stop payment of a preauthorized electronic fund 
transfer and the procedure to initiate such a stop payment order; 
(6) 
the consumer's right to receive documentation of electronic fund transfers 
under Section 6; 
(7) 
a summary, in a form prescribed by regulati?ns of the Board, of the error 
resolution provisions of section 8 and the consumer's rights thereunder. 
The financial institution shall thereafter transmit such summary at least 
once per calendar year; 
(8) 
the financial institution's liability to the consumer under Section 10; and 
(9) 
under what circumstances the financial institution will, in the ordinary 
course of business, disclose information concerning the consumer's 
account to third person. 
(B) 
A financial institution shall notify a consumer in writing at least twenty-one (21) 
days prior to the effective date of any change in any term or condition of the consumer's account 
required to be disclosed under subsection (1) of this section if such change would result in 
greater cost or liability for such consumer or decreased access to the consumer's account. A 
financial institution may, however, implement a change in the terms or conditions of an account 
without prior notice when such change is immediately necessary to maintain or restore the 
security of an electronic fund transfer system or a consumer's account. SUbject to subsection (A) 
(3) of this section, the Board shall require subsequent notification if such a change is made 
permanent. 
(C) 
For any account of a consumer made accessible to electronic fund transfers prior 
to the defective date of this Act, the information required to be disclosed to the consumer under 
subsection (A) of this section shall be disclosed not later than the earlier of-
(1) 
the first periodic statement required by section 6 after the effective date of 
this Act; or 
(2) 
thirty (30) days after the effective date of this Act. 
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SECTION 6. Documentation of Transfers. -
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(A) 
For each electronic fund transfer initiated by a consumer from an electronic 
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terminal, the financial institution holding such consumer's account shall, directly or indirectly, at 
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the time the transfer is initiated, make available to the consumer written documentation of such 
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transfer. The documentation. shall clearly set forth to the extent applicable -
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(1) 
the amount involved and the date the transfer is initiated; 
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(2) 
the type of transfer; 
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(3) 
the identity of the consumer's account with the financial institution from 
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which, or to which, funds are transferred; 
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(4) 
the identity of any third party to whom or from whom the fllllds are 
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transferred; and 
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(5) 
the location or identification of the electronic terminal involved. 
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(B) 
For a consumer's account which is scheduled to be credited by a pre- authorized 
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electronic fund transfer from the same payor at least once in each successive sixty-day period, 
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except where the payor provides positive notice of the transfer to the consumer, the financial 
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institution shall elect to provide promptly either positive notice to the consumer when the credit 
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is made as scheduled, or negative notice to the consumer when the credit is not made as 
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scheduled, in accordance with regulations of the Board. The means of notice elected shall be 
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disclosed to the consumer in accordance with section 5 of this Act. 
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(C) 
A financial institution shall provide each consumer with a periodic statement for 
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each account of such consumer that may be accessed by means of an electronic fund transfer. 
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Except as provided in sl\bsection (D) and (E) of this section, such statement shall be provided at 
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least monthly for each monthly or shorter cycle in which an electronic fund transfer affecting the 
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account has occurred, or every thee (3) months, whichever is more frequent. The statement, 
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which may include information regarding transactions other than electronic fund transfers, shall 
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clearly set forth -
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(I) 
with regard to each electronic fund transfer during the period, the 
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information described in subsection (A) of this Section, which may be 
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provided on an accompanying document: 
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(2) 
the amount of any fee or charge assessed by the financial institution during 
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the period for electronic fund transfers or for account maintenance; 
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(3) 
the balances in the consumer's account at the beginning of the period and 
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at the close of the period; and 
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(4) 
the address and telephone number to be used by the financial institution 
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for the purpose of receiving any statement inquiry or notice of account 
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error fi'om the consumer. Such address and telephone number shall be 
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preceded by the caption "Direct Inquiries to:" or other similar language 
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indicating that the address and number are to be used for such inquiries or 
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notices. 
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(D) 
In the case of a consumer's passbook account which may not be accessed by 
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electronic fund transfers other than pre-authorized electronic fund transfers crediting the account, 
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a financial institution may, in lieu of complying with the requirements of subsection (C) of this 
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section, upon presentation of the passbook, provide the consumer in writing with the amount and 
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date of each such transfer involving the account since the passbook was last presented. 
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(E) 
In the case of consumer's account, other than a passbook account, which may not 
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be accessed by electronic fund transfers other than pre-authorized electronic fund transfers 
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crediting the account, the financial institution may provide a periodic statement on a quarterly 
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basis which otherwise complies with the requirements of subsection (C) of this Section. 
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(F) 
In any action involving a consumer, any documentation required by this section to 
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be given to the consumer which indicates that an electronic fund transfer was made to another 
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person shall he admissible as evidence of such transfer and shall constitute prima facie proof that 
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such transfer was made. 
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SECTION 7. Pre-authorized Transfers. -
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(A) 
A preauthorized electronic fund transfer from a consumer's account may be 
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authorized by the consumer only in writing, and a copy of such authorization shall be provided to 
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the consumer when made. A consumer may stop payment of pre-authorized electronic fund 
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transfer by notifying the financial institution orally or in writing at any time up to three (3) 
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business days preceding the scheduled date of such transfer. The financial institution may require 
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written confirmation to be provided to it within fourteen (14) days of an oral notification if, when 
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the oral notification is made, the consumer advised of such requirement and the address to which 
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such confirmation should be sent. 
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(B) 
In the case of pre-authorized transfers from a consumer's account to the same 
6 
person which may vary in amount, the financial institution or designated payee shall, prior to 
7 
each transfer provide reasonable advance notice to the consumer, in accordance with regulations 
8 
of the Board, ofthe amount to be transferred and the scheduled date of the transfer. 
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SECTION 8. Error Resolution. -
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(A) 
If a financial institution, within sixty (60) days after having transmitted to a 
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consumer documentation pursuant to this Act, receives oral or written notice in which the 
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consumer 
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(I) 
(2) 
(3) 
sets forth or otherwise enables the financial institution to identify the name 
and account number of the consumer; 
ndicates the consumer's belief that the documentation, or, in the case of 
notification pursuant to Section 6, the consumer's account, contains an 
error and the amount of such error; and 
sets forth the reasons for the consumer's belief (where applicable) that an 
error has occurred, the financial institution shall investigate the alleged 
error, determIne whether an error has occurred, and report or mail the' 
results of such investigation and determination to the consumer within ten 
(10) business days. The financial institution may require written 
confirmation to be provided to it within ten (10) business days of an oral 
notification of error if, when the oral notification is made, the consumer is 
advised of such requirement and the address to which such confirmation 
should he sent. A financial institution which requires written confirmation 
in accordance with the previous sentence need not provisionally re-credit a 
consumer's account in accordance with subsection (C) of this section, nor 
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shaH the financial institution be liable under subsection (E) of this section 
2 
if the written confirmation is not received within the ten-day period 
3 
referred to in the previous sentence. 
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(B) 
If the financial institution determines that an error did occur, it shaH promptly, 
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but in no event more than one (1) business day after such determination, correct the error, obj ecl 
6 
to Section 9, including the crediting of interest where applicable. 
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(C) 
If a financial institution receives notice of an error in the manner and within the 
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time period specified in _ subsection (A) of this Section, it may, in lieu of the requirements of 
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subsections (A) and (B) of this Section, within ten (10) business days after receiving such notice 
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provisionally re-credit the consumer"s account for the amount alleged to be in error, subject to 
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Section 9, including interest where applicable, pending the conclusion of its investigation and its 
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determination of whether an error has occurred. Such investigation shall be concluded not later 
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than forty-five (45) days after receipt of notice of the error. During the pendency of the 
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investigation, the consumer shall have full use of the funds provisionally re-credited. 
IS 
(D) 
If the financial institution determines after its investigation pursuant to 0 
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subsection (A) or (C) of this section that an error did not occur, it shall deliver or mail to the 
17 
consumer an explanation of its findings within three (3) business days after the conclusion of its 
18 
investigation, and upon the request of the consumer promptly deliver or mail to the consumer 
19 
reproductions of all documents which the financial institution relied on to conclude that such 
20 
error did not occur. The financial institution shall include notice of the right to request 
21 
reproductions with the explanation of its findings. 
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(E) 
If any action under this Act, the court finds that -
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(1) 
the financial institution did not provisionally re-credit a consumer's 
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account within the ten-day period specified in subsection (C) of this 
25 
section, and the financial institution (a) did not make a good faith 
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investigation of the alleged error; or (b) did not have a reasonable basis for 
believing that the consumer's account was not in error; or 
(2) 
the financial institution knowingly and willfully concluded that the 
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consumer's account w as not in error when such conclusion could no( 
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reasonably have been drawn from the evidence available to the financial 
2 
institution at the time of its investigation, then the consumer shall be 
3 
entitled to treble damages. 
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(F) 
For the purpose of this section, an error consists of-
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(1) 
an unauthorized electronic fund transfer; 
6 
(2) 
an incorrect electronic fund transfer from or to the consumer's account; 
7 
(3) 
the omission from a periodic statement of an electronic fund transfer 
8 
affecting the consumer's account which should have been included; 
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(4) 
a computational error by the financial institution; 
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(5) 
the consumer's receipt for an incorrect amount of money from an 
11 
electronic terminal; 
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(6) 
a consumer's request for additional information or clarification concerning 
--
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an electronic fund transfer or any documentation required by this Act; or 
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(7) 
any other error described in regulations of the Board. 
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SECTION 9. Consumer Liability.-
16 
(A) 
A consumer shall he liable for any unauthorized electronic fund transfer involving 
17 
the account of such consumer only if the card or" other means of access utilized for such transfer· 
18 
was an accepted card or other means of access and if the issuer of such card, code, or other 
19 
means of access has provided a means whereby the user of such card, code, or other means of 
20 
access can be identified as the person authorized to use it, such as by signature, photograph or 
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fingerprint, or by electronic or mechanical confirmation. In lesser of-
22 
(I) 
One Thousand Pesos (Pl,OOO.OO); or 
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(2) 
The amount of money or value of property or services obtained in such 
24 
unauthorized electronic fund transfer prior to the time the financial 
25 
institution is notified of or otherwise becomes aware of, circumstances 
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which lead to the reasonable belief that an unauthorized electronic fund 
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transfer involving the consumer's account has been or may be effected. 
Notice under this paragraph is sufficient wh~n such steps have been taken 
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(8) 
as may be reasonably required in the ordinary course of business to 
provide the financial institution with the pertinent information, whether or 
not any particular officer, employee, or agent of the financial institution 
does in fact receive such information. Notwithstanding the foregoing, 
reimbursement need not be made to the consumer for losses the financial 
institution establishes would not have occurred but for the failure of the 
consumer to report within sixty (60) days of transmittal of the statement· 
(or 
III 
extenuating 
circumstances 
such 
as 
extended 
travel 
or 
hospitalization, within a reasonable time under the circumstances) any 
unauthorized electronic fund transfer or account error which appears on 
the periodic statement provided to the occurred but for the failure of the 
consumer to report any loss or theft of a card or other means of access 
within two (2) business days after the consumer learns of the loss or theft 
(or 
in 
extenuating 
circumstances 
such 
as 
extended 
travel 
or 
hospitalization, within a longer period which is reasonable under the 
circumstances), but the consumer's liability under this subsection in any 
such case may not exceed a total of Ten Thousand Pesos (10,000.00) or 
the amount of unauthorized electronic fund transfers which occur 
following the close of two (2) business days (or such longer period) after 
the consumer learns of the loss or theft but prior to notice to the financial 
institution under this subsection, whichever is less. 
In any action which involves a consumer's liability for an unauthorized electronic 
fund transfer, the burden of proof is upon the financial institution to show that the electronic fund 
transfer was unauthorized, then the burden of proof is upon the financial institution to establish 
that the conditions of liability set forth in subsection (8) of this Section have been met, and, if 
the transfer was initiated after the effective date of this Act, that the disclosures required to be 
made to the consumer under Section 5 were in fact made in accordance with such section. 
(C) 
In the event of a transaction which involves both an unauthorized electronic fund 
transfer and an extension of credit to an agreement between the consumer and the financial 
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institution to extend such credit to the consumer in the event the consumer's account is 
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overdrawn, the limitation on the consumer's liability for such transaction shall be determined 
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solely in accordance with this section. 
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(D) 
Nothing in this section imposes liability upon a consumer for an authorized 
5 
electronic fund transfer in excess of his liability for such a tnmsfer under other applicable law or 
6 
under any agreement with the consumer's financial institution. 
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(E) 
Except as provided in this Section, a consumer. incurs no liability from an 
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unauthorized electronic fund transfer. 
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SECTION 10. Liability of Financial Institutions. -
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(A) 
Subject to subsections (B) and (C) ofthis Section, a financial institution shall 
be liable to a consumer for all damages proximately caused by -
(1) 
(2) 
the financial institution's failure to make an electronic fund transfer, in 
accordance with the terms and conditions of an account, in the correct 
amount or in a timely manner when properly instructed to do so by the 
consumer, except where -
(a) 
(b) 
(c) 
(d) 
(e) 
the consumer's account has insufficient funds; 
the funds are' subj ect to legal process or other encumbrance 
such transfer would exceed an established credit limit; 
an electronic terminal has insufficient cash to complete the 
transaction; or 
as otherwise provided in regulations of the Board. 
the financial institution's failure to make an electronic fund transfer due to 
insufficient funds when the financial institution failed to credit, in 
accordance with the terms and conditions of an account, a deposit of funds 
to the consumer's account which would have provided sufficient funds to 
make the transfer. 
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(3) 
The financial institution's failure to stop payment of a pre-authorized 
2 
transfer from a consumer's account when instructed to do so in accordance 
3 
with the terms and conditions ofthe account. 
4 
(B) 
A financial institution shall not be liable under subsection (B) (I) or (2) of this. 
5 
Section if the financial institution shows by a preponderance of the evidence that its action or 
6 
failure to act resulted from -
7 
(I) 
an act of God or other circumstance beyond its control, that it exercised 
8 
reasonable care to prevent such a31 occurrence, and that it exercised such 
9 
diligence as the circumstances required; or 
10 
(2) 
a technical malfunction which was known to the consumer at the time he 
11 
attempted to initiate an electronic fund transfer or, in the case of a 
12 
preauthorized transfer, at the time such transfer should have occurred. 
13 
(C) 
In the case of a failure described in subsection (A) of this Section which was not 
14 
intentional and which resulted from a bona fide error, notwithstanding the maintenance of 
15 
procedures reasonably adopted to avoid any such error, the financial institution shall be liable for 
16 
actual damages proved. 
17 
SECTION II. Issuance of Cards or Other Means of Access. -
18 
(A) 
No person may issue to a consumer any card, code, or other means of access to 
19 
such consumer's account for the purpose of initiating an electronic fund transfer other than-
20 
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(B) 
(I) 
(2) 
in response to a request or application therefore; or 
as renewal of, or in substitution for, an accepted card, code, or other 
means of access, whether issued by the initial insurer or a successor. 
Notwithstanding the provisions of subsection (I) of this section, a person may 
24 
distribute to a consumer on an unsolicited basis a card, code, or other means of access for use in 
25 
initiating an electronic fund transfer from such consumer's account, if -
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(I) 
such card, code, or other means of access is not validated; 
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6 
7 
8 
9 
10 
11. 
12 
(2) 
(3) 
(4) 
such distribution is accompanied by a complete disclosure, in accordance 
with Section 5, of the consumer's rights and liabilities which apply if such 
card, code, or other means of access is validated; 
such distribution is accompanied by a clea; explanation, in accordance 
with regulations of the Board, that such card, code, or other means of 
access is not validated and how the consumer may dispose of such code, 
card, or other means of access if validation is not desired; and 
such card, code or other means of access is validated only in response to a 
request or application from the consumer, upon verification of the 
consumer's identity. 
(C) 
For the purpose of subsection (B) of this Section, a card, code, or other means of 
access is validated when it may be used to initiate an electronic fund transfer. 
13 
SECTION 12. Suspension of Obligations. - If a system malfunction prevents the 
14 
effectuation of an electronic fund transfer initiated by a consumer to another person, and such 
15 
other person has agreed to accept payment by such means, the consumer's obligation to the other 
16 
person shall be suspended until the malfunction is corrected and the electronic fund transfer may 
17 
be completed, unless such other person has subsequently, by written request, demanded payment 
18 
by means other than an electronic fund transfer. 
19 
SECTION 13. Compulsory Use of Electronic Fund Transfers. - No person may condition 
20 
the extension of credit to a consumer on such consumer's repayment by means of pre-authorized 
21 
electronic fund transfers; or require a consumer to establish an account for receipt of electronic 
22 
fund transfers with a particular financial institution as a condition of employment or receipt of a 
23 
government benefit. 
24 
SECTION 14. Waiver of Rights. - No writing or other agreement between a consumer 
25 
and any other person may contain any provision which constitutes a waiver of any right 
L 
26 
conferred or cause of action created by this Act. Nothing in this section prohibits, however, any 
15 


1 
writing or other agreement which grants to a consumer a more extensive right or remedy or 
2 
greater protection than contained in this subchapter or a waiver given in settlement of a dispute 
3 
or action. 
4 
SECTION 15. Separability Clause. - If any provision or part thereof is held invalid or 
5 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
6 
valid and subsisting accordingly. 
7 
SECTION 16. Repealing Clause. - Any law; presidential decree or issuance, executive 
8 
order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
9 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
10 
SECTION 17. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
11 
publication in at least two (2) newspapers of general circulation. 
Approved, 
-
( 
-
t 
16