Note no. 4 May also be based from the outstanding balance.

February 2
6. Detailed explanation and a clear illustration or
Philippine Credit Card Industry manner by which all fees were computed.
Different types of purchases:
1. Balance transfer 7. Notification of changes in the computation. It must be
2. Cash advantages done at least 90 days prior to the effectivity or change.
3. Regular purchases Relevant right of credit card holder: Determine whether
4. Instalment purchases amortized in a fixed period the changes is acceptable or not; if not, he has the right
to terminate his account.
Note:
Retail transaction- 3.5% 8. Must maintain the confidentiality of information.
Cash advance transaction Officers, employees and agents shall keep strictly
Instalment diminishing balance method and monthly confidential the data of the cardholder.
added on rate. Except:
a. If with consent.
What can you pay: b. Released to the credit information bureau industry
a. Entire balance association or card associations upon order of competent
b. Not full balance jurisdiction or any government.
c. Minimum amount due c. Enforcing bank’s right of collection.
d. any amount which is a part of any fixed monthly d. For purposes of investigating fraud.
instalment.
e. Any amount in excess of the credit line
f. All past due amounts, if any.

Minimum amount due:

- Outstanding balance x required payment
percentage or fixed amount, whichever is higher.

Note: Supervision by the Bangko Sentral ng Pilipinas

Obligation of credit card issuer:

1. Conduct a KYC/Know Your Client
- They must exercise proper diligence in ascertaining
that applicant possesses a good credit status, that ge is
financially capable of fulfilling their credit commitment.

2. Impose finance charges and other fees arising from

non-payment shall be based in the unpaid outstanding
balance.

3. They shall make disclosures of:

- Finance charges for the unpaid amount
- Percentage that the interest bears with the total amount
to be financed.
- The default or late payment or penalty fees.
- The method for determining the amount of interest and
the/or delinquency charges.
- Other fees such as membership fees, supplemental fees
- The manner of conversion.
- The important reminder.

4. Credit card issuer shall endeavour to convey the

information in a manner that is understandable.

5. Basis for late payment fee.

Late payment fee shall be based on the unpaid minimum
amount due whichever is lower.