Then there's the myth that unpaid credit card debt in the Philippines doesn't lead to any legal consequences. Unfortunately, that's not entirely true. While you won't be thrown behind bars for unpaid credit card debt, creditors can still take legal action to get their money back.
If no payment is made on or before Payment Due Date or payment made is below the Minimum Payment, a Late Payment Charge of 5% of the Overdue Amount or P300, whichever is higher, will be charged to your account. For dollar transactions, a late payment charge of 4.5% of the overdue amount or US$6, whichever is higher***.
5% of the Overdue Amount or P300, whichever is higher
Note: etween the provisions of these reminders and the Terms and Conditions Governing the Issuance and Use of BDO Credit Cards as stated in your Card Carrier, the latter shall prevail.
Penalty APR
If you don't pay your credit card balances at all, your issuer could report your account to one or all of the credit bureaus, which are also responsible for generating your credit score. Having missed payments on your credit report can impact your credit score significantly.
This means that a credit card company has a ten-year period within which to file a case against the cardholder to collect unpaid debts. Once the prescriptive period lapses, the creditor may no longer legally compel the debtor to pay through court action.
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
Statement Date is the regular statement Cut-off-date of all the CARDHOLDER's BDO Credit Card transactions. If statement date falls on Friday, Saturday or a Holiday, statement date will be the preceding day or the following day after the official statement date.
Please note that the BARO Act grace period is one-time starting from the due date concerned plus 60 days. No interest on interest, penalties fees and other charges for late payment will be imposed during the grace period.
If you don't pay at least the minimum payment or you make a late payment, you risk: your interest rate increasing. negatively affecting your credit score. losing the benefit of any promotional rate offer you have.
Prohibition of Harassment and Coercion
Debt collection practices, including home visits, must not amount to harassment. BSP Circular No. 1048 explicitly prohibits debt collectors from using any form of threat, intimidation, or undue influence to coerce debtors into paying.
Under the Fair Credit Reporting Act (FCRA), most negative information, including unpaid credit card debt, must be removed from your credit report after seven years. This seven-year period typically begins 180 days after the account first becomes delinquent.
When it comes to unpaid bank loans, a financial institution may request a travel ban to prevent the debtor from leaving the country until the debt is settled. This legal mechanism is usually rooted in ensuring that the debtor does not evade their financial obligations.
MYTH 4: Unpaid Credit Cards Debt Can Put You in Jail
In the Philippines, unpaid debts are considered as civil liability. It is in accordance with the Philippine Constitution, Sec. 20 Article III, stating that no person can be imprisoned due to debt.
Unpaid credit cards fall into the “civil debt” category and are not punishable by jail time. However, criminal offenses related to financial affairs, like tax evasion, could land you in jail. It's important to know that ignoring judgments against you could result in serious legal consequences, including jail time.
Technically, nothing happens to your debt when you leave the country. It's still your debt, and your creditors and collectors will continue trying to get you to pay it back. Just as they would before, those efforts may include phone calls and letters.
BDO reserves the right to close the account if the Depositor has handled his account in a manner not satisfactory to BDO and/or if the Depositor draws checks against insufficient funds and/or uncollected deposits and any two (2) of such checks are presented to BDO within a 30-day period.
In case of delinquency, ISSUER shall have the right to suspend or cancel CARD privileges, and the Outstanding Balance shall become immediately due and demandable without notice or demand. CARDHOLDER shall continue to pay Membership Fees until the obligation is fully settled.
Worldwide Acceptance. Bring and use your BDO Mastercard Credit Card all over the world. Your card is accepted in over 20 million locations in around 275 countries and territories.
BDO will implement cut-offs (Philippine time) during the day for certain transaction at 10:00 p.m. (the “Cut-off Time”). BDO Online Banking transactions made after the Cut-off Time will be stored and processed the next Philippine banking day.
Via Internet Banking
However some issuers also let you register for net banking on the bank portal. Credit card balance is usually shown on the dashboard or under the 'My Account' section. If your statement has not been generated for the month, you can check the current outstanding amount under unbilled transactions.
For credit card debt, which is considered a personal obligation under contract law, the prescriptive period is typically ten (10) years. This means that the creditor has up to ten years to file a lawsuit to recover the debt, starting from the time the debtor defaulted or failed to meet payment obligations.
The longer you go without paying, the more likely you are to rack up fees, damage your credit score, see your interest rate soar, be harassed by debt collectors, and even face legal issues.
If you are wondering how to check if you are blacklisted for credit in Philippines, contact the accredited credit bureaus such as CIBI Information (CIBI), TransUnion Philippines, Compuscan Philippines and find out your credit rating.