Manila, The Philippines – The Bangko Sentral ng Pilipinas will start to implement strict rules to clamp down on the “excessive practices” of banks and their credit card subsidiaries and affiliates.
This includes investigating cardholders? complaints against collecting agents, which banks hire to collect past due accounts or credit card receivables.
According to BSP Deputy Governor Alberto V. Reyes the central bank will now look into complaints? “abusive collectors” and the use of threats and insults. “The important policy change here is that it will include not only banks but quasi-banks and their affiliates,” Reyes said.
At the moment, only banks are covered by the BSP credit card regulations. This has allowed banks to use subsidiaries and affiliates for its aggressive marketing.
Reyes said the BSP policy, approved through the Monetary Board, also now mandates banks? credit card firms to be more transparent especially on their imposition of hidden fees or charges and collection practices.
The banks are also ordered to disclose the true foreign exchange conversion rate for credit card transactions. Lack of transparency has been one of the most common complaints of consumer groups, besides abusive collecting agents. Cardholders said banks? computation of foreign exchange rates are not properly explained or disclosed to the clients.
For this complete story, please visit Philippine Central Bank to Crack Down on Credit Card Collectors.
