BSP tightens credit card rules

he ang o entral ng ilipinas has tightened its an on the issuance o pre approved credit cards to an clients

he prohi ition on the issuance o pre approved credit cards all su pervised financial entities with credit card operations is enhanced stressing un der said regulations that the provisions o this circular shall prevail notwithstanding an contrar stipulations in the contract the central an said

he ne amendments are carried under ircular o. , hich greatl details the acts tantamount” to issuing pre- appro ed credit cards b the banks, uasi- banks, and non- banking fi nancial institutions, and their subsidiaries or affiliate companies.

hese acts include sending credit cards to customers ith no prior application or re uest that are re uired for application, and mailing unsolicited supplementar cards and other cards hich are not a replacement of the consumer s initial credit card.

he has also prohibited unsolicited calls b credit card issuers re uesting updated information from selected clients in order to be entitled to recei e credit card as a re ard for his her continued patronage of the bank s other financial products.”

nsolicited calls to clients telling them that the alread ha e a credit card for ha ing a good standing” as a depositor are also not allo ed.

anks ere also forbidden from sending of mails ith credit card enclosed hich ill be deemed accepted upon the receipt of such card b a recei er, hether authori ed or not.”

he central bank also stressed the ban against sending an unsolicited credit card alread assumed to be accepted unless the customer re uests the bank to terminate such, and sending cards guised as free offers to consumers.

he ne circular is an enhancement of ircular o. , series of , hich as issued follo ing concerns that pre- appro ed cards ha e e posed the public to cases of fraud.

he central bank re uires banks and nonbank financial institutions ith credit card