A proposed measure aims to prohibit the issuance of unsolicited pre-approved credit cards, strengthening existing regulations and imposing heavier penalties on violators.

Senate Bill No. 2952, or the Pre-Approved Credit Card Prohibition Act, was filed to institutionalize the ban already set under Bangko Sentral ng Pilipinas (BSP) Circulars Nos. 702 and 845. 

Senate President Pro Tempore Jinggoy Ejercito Estrada, the proponent of the bill, cited reports that despite BSP regulations, banks and credit card companies continue to issue pre-approved cards to unsuspecting consumers.

“This practice is problematic, especially when done without the user’s consent. For those who lack financial discipline, it becomes a debt trap. Banks and credit card companies must respect individuals’ rights to decide on their financial transactions,” Estrada stressed..

SB 2952 prohibits financial institutions from issuing credit cards without prior application or supporting documents. It also seeks to ban the issuance of unsolicited supplementary cards and credit cards with additional features that are not replacements for existing ones.

The measure would also prohibit unsolicited calls offering them as rewards for using other financial products, the automatic issuance to depositors in good standing, and the mailing of cards that are considered accepted upon receipt without consumer consent.

Additionally, offering free credit cards as part of other financial services would be banned.

Estrada also underscored the need to curb unethical collection practices, including any form of harassment against consumers who use pre-approved credit cards.

Violators would face escalating penalties: a first offense would result in censure and a fine of P300,000 for responsible directors and officers; a second offense would lead to suspension from BSP’s credit facilities and a P500,000 fine; and a third violation would result in license revocation and an P800,000 fine.

“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,” Estrada furthered.

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