Do you have credit card/s that you could not pay anymore? Do you know how to get out of debt on your own the right way?
Banko Sentral ng Pilipinas (BSP) told that collection agent should not ask cardholders to pay a down payment.
Moreover, they also told that only banks and credit card companies can give the final approval for any repayment scheme.
Banko Sentral ng Pilipinas (BSP) advice card holders not to wait and become a credit card debt defaulter. Cardholders should know how to get out of debt by immediately requesting repayment scheme from the bank, to settle how much the cardholder should pay monthly depending on the capacity to pay of the cardholder.
Banko Sentral ng Pilipinas (BSP) release “Advisory on the AUTHORITY of collection agents to negotiate with a credit cardholder for a new repayment scheme”
Under this advisory, the following was mention for cardholders to remember;
- Credit card issuers may refer overdue accounts to a third party collection agent (“collection agent”)
- A collection agent is NOT an employee of the credit card issuer but is authorized to collect on its behalf.
- A credit cardholder is given a written notice prior to the endorsement of his/her account to a collection agent.
- A collection agent is authorized to negotiate for repayment schemes based on the specific guidelines set by the credit card issuer. Credit cardholders may get a copy of this guideline from their credit card issuer.
- PRIOR PAYMENT is not necessary before the negotiation for a repayment scheme.
- ONLY the credit card issuer can give the FINAL APPROVAL of any type of repayment scheme reached with a collection agent.
- A Conforme Letter and/or Promissory Note is prepared by the credit card issuer to support the new repayment scheme agreement. BOTH the credit card issuer and the card holder should sign on the Promissory Note.
Image may be NSFW.
Clik here to view.
Banko Sentral ng Pilipinas (BSP) also mention that there is a policy about “Unfair Collection Practices” where it is prohibited to;
- Use of threat of violence or other criminal means to harm the physical person, reputation, and or property of any person
- Use of obscenities, insults or profane language which amount to a criminal act under applicable laws.
Given our rights as a cardholders, we must always remember that it is still our debt that we need to pay and we must know the ways how to get out of credit card debt.
Did you like ” How To Get Out Of Debt (Management Tips) ? We would greatly appreciate if you would share this on Facebook.
The post How To Get Out Of Credit Card Debt appeared first on Wealth Strategies.