TUCP to BSP : Probe credit card firms' schemes

MANILA, Philippines - Labor group Trade Union Congress of the Philippines on Thursday called on the Bangko Sentral ng Pilipinas to go after unscrupulous credit card companies that impose involuntary membership, charging exorbitant interest rates, hidden surcharges and for violation of privacy.

"We urge the Bangko Sentral ng Pilipinas to step in, use its teeth in enforcing the law and government regulations against abusive credit card companies who are now operating as if there is no rule of law. We want the BSP to weigh in and protect the public from oppressive credit card players," Gerard Seno, executive vice president of the Associated Labor Unions-TUCP, said.

Seno said they received reports that credit card companies automatically send pre-approved credit card membership to many people with the names of the recipients on the card without even applying for it.

"We don’t know at what extent these people have been accessing our personal data but it’s very obvious there is an invisible but organized web of syndicated operators manipulating, sharing among themselves our privacy. We want the executive government to intervene and put a stop to this," Seno added.

He said the TUCP supports House Bill 2551, which seeks to protect credit card holders by setting a ceiling on interest rates and surcharges and prohibiting hidden penalties or costs imposed by credit card companies, banks and similar institutions on purchases and cash advance made through such facility.

The bill aims to lower credit card interest rates on purchases and cash advance to 1 percent and set the surcharges or penalties limited to not more than 1 percent amid the 3 to 3.5 percent currently imposed by credit card companies on both charges. - Philippine Star