Jinggoy files bill banning unsolicited pre-approved credit cards

PHILIPPINES, February 27 - Press Release
February 27, 2025

SENATE President Pro Tempore Jinggoy Ejercito Estrada is pushing for the approval of his proposal to ban the issuance of pre-approved credit cards to individuals who did not apply for them.

Although such practice is already banned under Bangko Sentral ng Pilipinas (BSP) Circulars Nos. 702 and 845 issued on December 15, 2010 and August 15, 2014, respectively, Estrada pressed the need to pass a law to institutionalize the prohibition, noting reports that pre-approved credit cards continue to be issued to unsuspecting consumers.

"May mali sa gawaing ito lalo na kung walang consent o pahintulot ang credit card user na mabigyan ng pre-approved credit card. Para sa walang disiplina sa paggastos, debt trap ito. Dapat igalang ng mga bangko at credit card companies ang karapatan ng mga indibidwal na magpasya sa kanilang mga financial transactions," Estrada said.

"This proposed measure seeks to strengthen the prohibition on the issuance of pre-approved credit cards to consumers and provide for heavier penalties for violators. The credit card provider must prove that its client read and consented to the terms and conditions governing the credit card's use. Failure to prove consent means that the client cannot be bound by the terms and conditions of the credit card," Estrada said in his filed Senate Bill No. 2952, or the proposed Pre-Approved Credit Card Prohibition Act.

Estrada seeks to prohibit the practice of sending credit cards to consumers without prior application or supporting documents, and sending unsolicited supplementary cards or cards with additional features that are not replacements for existing cards.

Additionally, making unsolicited calls offering credit cards as rewards for using other financial products, informing depositors that they have automatically been issued a credit card due to their good standing, and mailing credit cards considered accepted upon receipt without consumer consent should also be banned, he said.

Offering free credit cards to customers availing of other financial services is another proposed prohibited practice under SBN 2952.

Credit card collection agents shall be prohibited from engaging in any unethical collection activities or any form of harassment against consumers who use pre-approved credit cards, Estrada said, adding that the bill is also aimed at promoting ethical business practices.

Penalties for violating any of the prohibited acts are structured to ensure accountability and compliance. For first offenders, the directors and officers of the credit card issuer responsible for the violation will face censure and a fine of P300,000. A second offense will result in the suspension of the credit card issuer from the credit facilities of the BSP and a fine of P500,000. In the event of a third offense, the issuer will face the revocation of their license to engage in the credit card business and shall pay a fine of P800,000.

Panukalang batas para ipagbawal ang unsolicited pre-approved credit cards, inihain ni Jinggoy

NAIS ni Senate President Pro Tempore Jinggoy Ejercito Estrada na ipagbawal ang pagbibigay ng pre-approved credit cards sa mga taong hindi naman nag-apply para rito.

Iginiit ni Estrada na kailangang magpasa ng batas para ipagbawal ang nasabing gawain ng mga bangko at credit card companies sa gitna ng mga ulat na patuloy pa rin ang pagbibigay ng mga pre-approved credit cards kahit na wala itong pahintulot ng mga konsyumer.

Ipinagbabawal ng Bangko Sentral ng Pilipinas (BSP) Circulars Nos. 702 at 845 na inilabas noong Disyembre 15, 2010 at Agosto 15, 2014 ang nasabing kagawian ng mga bangko at credit card companies.

"Layunin ng panukalang ito na patibayin ang pagbabawal sa pagbibigay ng pre-approved credit cards sa mga konsyumer at magtakda ng mas mabibigat na parusa sa mga lalabag. Dapat may patunay ang credit card provider na nabasa at sinang-ayunan ng kanilang kliyente ang mga tuntunin at kundisyon ng paggamit ng credit card. Kung hindi ito mapatunayan, hindi maaaring ipataw sa kliyente ang pagsunod sa mga tuntunin at kundisyon sa paggamit ng credit card," paliwanag ni Estrada sa kanyang inihaing Senate Bill No. 2952 o ang panukalang Pre-Approved Credit Card Prohibition Act.

Nais ni Estrada na mahigpit na ipagbawal ang gawain na pagpapadala ng pre-approved credit card sa mga konsyumer nang walang paunang aplikasyon o kaukulang dokumento, pati na rin ang pagpapadala ng mga unsolicited supplementary card o mga card na may dagdag na features.

Bukod pa rito, iminungkahi rin niya na ipagbawal ang ginagawang pagtawag sa telepono para mag-alok ng credit card bilang reward sa paggamit ng iba pang financial products, pagbibigay alam sa mga depositors o kliyente na sila'y awtomatikong nabigyan ng credit card dahil sa kanilang good standing, at maging ang pagpapadala ng credit card kalakip sa liham kung wala namang pahintulot ito ng konsyumer.

Kasama rin sa mga ipinagbabawal sa ilalim ng SB 2952 ang pagbibigay ng libreng credit card bilang insentibo para sa paggamit ng ibang serbisyo pinansyal.

Ipagbabawal din sa mga credit card collection agents ang mga hindi makatwiran na paraan ng pangongolekta at harassment ng mga konsyumer na gumamit ng pre-approved credit card, sabi ni Estrada.

Paliwanag ng senador na layon din ng kanyang ipinapanukalang batas na itaguyod ang ethical business practices.

Ang mga parusa para sa paglabag sa alinman sa mga ipinagbabawal na gawain ay nakabalangkas upang matiyak ang pananagutan at pagsunod sa panukalang batas.

Para sa mga unang paglabag, ang mga director at opisyal na responsable sa pag-issue ng credit card ay mumultahan ng P300,000. Isususpinde ang credit card issuer mula sa credit facilities ng BSP sa ikalawang beses na paglabag at papatawan ng multa na P500,000. Sakaling magkaroon ng ikatlong paglabag, haharapin ng nag-issue ng credit card ang pagkakansela ng kanilang lisensya sa credit card business at kabayarang P800,000 bilang multa.

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Jinggoy files bill banning unsolicited pre-approved credit cards

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