BSP-backed bill to protect consumers from aggressive credit collection practices

Photo courtesy of Bangko Sentral ng Pilipinas Facebook Page

The proposed Financial Consumer Protection Act now being deliberated on by Congress will help protect Filipinos from unfair collection practices employed by credit card firms like threats and harassment, the central bank said on Monday.

At the same time, it will also make it easier for consumers to insulate themselves from fraud committed against them during online transactions, said Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.

“This legislative initiative has far-reaching benefits to consumers especially amid the rise in digital transactions,” the central bank chief said in a statement. “The proposed reforms in the financial sector will enhance the authority of regulators and ensure that appropriate mechanisms are in place to safeguard the interest of financial consumers.”

Under the pending consumer protection law, financial regulators may issue a cease-and-desist order on unfair collection practices deemed as threats or harassment against a financial consumer without the need for prior hearing .

Similarly, consumers no longer need to go to court if their claim involves a return of money from a financial service provider.

In addition, financial service providers that are found responsible for credit card fraud in online shopping may be subject to sanctions. Diokno stressed that consumer protection is a shared responsibility among regulators, consumers and relevant stakeholders.

“Consumer welfare is a continuing agenda of the BSP,” he said. INQ