By Dolly PalisadaYOU are a credit card defaulter. Your credit card debt has blown out ofproportion. The amount is so huge you can no longer pay it in full. A fewmonths after, a credit card collector comes knocking at your door, harassingyou, threatening to sue you or try pulling out your properties to settle youraccount.
In the Philippines,you hear horror stories of harassment and intimidation by credit cardcollectors. To equip yourself with basic information of your rights, here areseveral useful pointers that you may use in a likely scenario:
1. You have the right to ask the debt collector a copy of your Statement ofAccount (SOA) duly signed by the bank. A demand letter or an offer lettershowing a discounted rate of your debt is not your SOA. If they provide you anSOA, make sure to verify it with the bank for its authenticity. Make yourrequest clear or adopt a mantra: No SOA, No Pay.
2. You have the right to decide on how much you can afford to pay your debt. Dothis by sending a proposal letter through email or the post office for yourproposed mode of repayment and it should be according to your financialcapacity.
3. Once you confirm agreement, it should be officially written (never a verbalone). A written proof is what you need in case they deny your payments.
4. In case of disagreement in the proposal, then don’t pay. Challenge thecollecting agency to pursue the case in court where it is handled properly. Itshould be noted that credit card debt, done in good faith (such as bankruptcy,unemployment, etc) is not a criminal act but a simple case of breach ofcontract therefore constitute a civil case. Credit card debt eventually turnsinto criminal act at the issuance of bouncing checks (estafa) or was stolen andused by another person.
5. In some cases, collecting agencies may use police presence as shock factorto knock at your door: will dangle a piece of paper in your face as “warrant ofarrest†but will not allow you to read it. These are one of the many ploys topressure you out of your wits to pay your debt. Don’t panic. Instead, get theirnames, their precinct and their car’s plate number. You may also take a pictureof their faces through your phone camera or press start a video. Again, be warythat this is not the job of policemen, barangay captains or kagawads. File acomplaint or case against them for abuse of authority if they keep on harassingyou.
6. Credit card collection agencies will use guises and disguises for the solepurpose of collecting money from you. Commonly used are “LBC uniformed men†toenter your home by announcing a package delivery. Once you allow them to enterthe house, they will reveal their true identity and will try by all means topurge money from you or pull-out appliances at your house to swap for yourdebt. At times they will claim to be the sheriff of the court and extort moneyfrom you. Be vigilant and tell them to go or you file a criminal case againstthem for trespassing, extortion or unjust vexation.
7. Some initial pressures used by credit card collectors are in the form oftext messages or persistent calls. Messages may say you have a pending warrantof arrest or will contain details of court case number, name of the judge, branchof court and time of hearing. The purpose of this is to sow panic and fear.However, a text message containing information of an impending warrant ofarrest is a give away. A proper court will not issue such nonsense. Warrant ofarrest is for criminal cases and credit card debt is a civil issue. It shouldbe noted that warrant of arrests are personally delivered by court authoritiesby surprise and not over the phone or texts messages, fax or email messages.
8. What is RA 8484? Most often, this republic act is used by collecting agentsto intimidate defaulters. In essence, Republic Act 8484 is also known as theAccess Devices Regulation Act of 1998. In layman’s language, an access devicemeans any card, plate, code, account number, electronic serial number, personalidentification number and other telecommunication services, equipment orinstrumentalities-identifier or other means of account access that can be usedto obtain money, goods, services or any other thing of value to initiate atransfer of funds. RA 8484 is also applicable to person/persons who applied fora credit card using fake identity/identities which is classified as afraudulent act and has nothing to do with your credit card debt or non-paymentof debt.
9. Having said all that, it is worth mentioning as well that credit carddefaulters can still travel abroad. Do not believe if collectors will threatento file a hold departure order against you because it’s merely a bluff. Forthose getting an NBI clearance for work or other purposes, don’t believe inhearsay that you cannot get your clearance despite your standing debt. Takenote that NBI records reveal criminal cases only and not civil cases.
Are credit card debt collectors telling lies? Yes. It’s their modus operandi toput pressure on the defaulter to collect money. We know they are only doingtheir jobs but a defaulter has rights as well to protect themselves from suchharassments. Collecting agencies are paid for by the banks to collect debts.For as long as you’re not running away from your responsibilities, or you’renot in hiding, then move on with life and learn a great deal from theexperience.
