Good day IBP Davao.
Sinisingil na po ako ng mga credit collectors ko. Pero minsan medyo beyond the line na po sila kung maka demand and tawag. Legal po ba yan? Ano po ba pwede i-complain sa mga ganun? Tanong
Rachel
Dear Rachel:
As a rule, creditors, such as credit card companies or their collection agents, have the right to demand payment from their debtors when the obligation becomes due. This usually happens when the debtor has been delinquent in paying his or her account. A creditor can take reasonable measures in demanding payment to compel the debtor to pay. This includes making threats to enforce his or her claim in court.
In the case of Lee vs. Court of Appeals, 201 SCRA 405, the Supreme Court stated that such practice is legal as there is nothing unlawful on the threat to sue. It is a practice followed not only by banks but even by individuals to demand payment of their accounts with the threat that upon failure to do so an action would be instituted in court. Thus, the said a threat is legal within the realm of the law as a means to enforce collection.
However, it must always be remembered that a creditor may only do legally appropriate acts in trying to collect from his or her debtor. If there comes a time when the creditor acts beyond the limits of law, legal responsibilities would attach to him and the debtor would have a ground to sue in court.
However, even if the said credit card companies or their collection agents have the right to collect the payment of his or her debtor, it should not resort to unfair collection practices. As can be gleaned from Subsections. 4301 N. 14, Manual of Regulations for Non-Bank Financial Institution as amended by Circular No. 454, s. 2004, unfair collection practices are the following, to wit:
(a) use or threat of violence or other criminal means to harm a person, his reputation or property;
- b) use of obscenities, insults, or profane language which amount to a criminal act or offense;
(c) disclosure of the names of credit cardholders who allegedly refuse to pay debts, unless authorized by law;
(d) threat to take any action that cannot legally be taken;
- e) purposely communicating or threatening to communicate false credit information;
(f) any false representation or deceptive means to collect any debt or to obtain information concerning a cardholder; and
(g) making contact at unreasonable/inconvenient hours before 6:00 A.M. or after 10:00 P.M., unless the account is past due for more than sixty (60) days, it is with express permission, or said times are the only reasonable or convenient opportunities for contact.
Under Republic Act (R.A.) No. 7653, known as the New Central Bank Act, the violation of the said rules by the credit card company or its collection agent would make them liable administratively and criminally. They might also be criminally liable under the Revised Penal Code, and civilly liable under the Civil Code.
In view of the foregoing, the credit company or the collection agent’s threat to sue per se is not actionable. But if this is accompanied by the above-mentioned acts, you may file appropriate civil, criminal, and administrative complaint against the credit card company or its collection agent for the protection of your rights.
