Unethical collection tactics

Last couple of weeks ago, I wrote about the plight of a good friend of mine. He called me one morning sounding very disturbed and confided that he received a call from a person claiming to be a “police officer and was being asked to go and meet him in their office”. It turned out to be that my friend has over P50,000.00 (principal) in credit card debt couple of years ago. This kind of situation is not something new to me, as I always received this kind of calls from friends who ask for my advice. Of course, my advice to him is to settle the account directly to the card company. 

However, the situation has turned into something “ugly”. The collector who claimed to be a ”police officer” sent several text messages which contained a lot of personal threats not only to my friend but also to his family. The said messages were forwarded to me and I cannot stomach the kind of words used. As a matter of fact, the text messages were so foul that I cannot even quote it as it is full of expletives. This is a classic case of unethical collection tactics.

As a matter of policy, when a debt collector is attempting to contact or collect using telephone or cell phone, the telephone collector is required to identify him or herself and if requested, must identify their employer or if they are third party such as a collection agency, they are required to inform the debtor the name of their client where the debtor owes money.

As a matter of fact, due to the numerous complaints filed by consumers on several unethical collection tactics and unfair collection practices particularly of some independent collection companies which employ several “part time telecollectors”, the Bangko Sentral ng Pilipinas in September 2004 issued CIRCULAR 454: Unfair Collection Practices. It states that banks, subsidiary/affiliate credit card companies, collection agencies, counsels and other agents may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement: Provided, that in the exercise of their rights and performance of duties, they must observe good faith and reasonable conduct and refrain from engaging in unscrupulous or untoward acts.

The following conduct is considered unethical collection tactics: a) the use or threat of violence or other criminal means to harm the physical person, reputation, or property of any person; b) the use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws; c) disclosure of the names of credit cardholders who allegedly refuse to pay debts, except as allowed under Subsec. X320.9 and 4301N.9; d) threat to take any action that cannot legally be taken; e) communicating or threat to communicate to any person credit information which is known to be false, including failure to communicate that a debt is being disputed; f) any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a cardholder; and g) making contact at unreasonable/inconvenient times or hours which shall be defined as contact before 6:00 A.M. or after 10:00 P.M., unless the account is past due for more than sixty (60) days or the cardholder has given express permission or said times are the only reasonable or convenient opportunities for contact.

For questions and inquiries call or text 0917-7220521 or email at [email protected]