Group backs cap on credit card charges

The Management Association of the Philippines backed the proposal of the Bangko Sentral ng Pilipinas seeking a cap on credit card loan charges to ease the burden on consumers during the health crisis.

MAP president Francis Lim said in a statement on Tuesday the group supported the BSP proposal, which is looking at imposing a maximum finance charge equivalent to an effective annual interest rate of 24 percent for credit card cash advances and installment purchases.

“The BSP governor’s proposal, coupled with the 60-day payment deferment under the Bayanihan to Recover as One Act, will provide big relief to businesses and individuals using credit cards, many of whom have found themselves jobless as a result of the pandemic,” Lim said.

“We understand that the Bankers Association of the Philippines is supportive of the proposal and that is a clear indication how the banking industry is bending over backwards to help our countrymen during this critical period,” Lim added.

The version of the Bayanihan 2 bill passed in the House of Representatives wanted to impose a year-long moratorium on loan payments, a move which MAP and the BSP had previously opposed.

The chambers have reportedly agreed to limit the moratorium to 60 days, which is twice as long as what the Senate wanted, but still significantly shorter than a year. INQ