REPUBLIC ACT NO. 8484
An act regulating the issuance and use of access devices, prohibiting fraudulent acts committed relative thereto, providing penalties and for other purposes.
Section 1. Short title. — This Act shall be known as the
"Access Devices Regulation Act of 1998."
Sec. 2. Declaration of policy. — The State recognizes the
recent advances in technology and the widespread use of
access devices in commercial transactions. Toward this end,
the State shall protect the rights and define the
liabilities of parties in such commercial transactions by
regulating the issuance and use of access devices.
Sec. 3. Definition of terms. — For purposes of this Act, the
terms:
(a) Access Device — means any card, plate, code, account
number, electronic serial number, personal identification
number, or other telecommunications service, equipment, or
instrumental identifier, or other means of account access
that can be used to obtain money, good, services, or any
other thing of value or to initiate a transfer of funds
(other than a transfer originated solely by paper
instrument);
(b) Counterfeit Access Device — means any access device that
is counterfeit, fictitious, altered, or forged, or an
identifiable component of an access device or counterfeit
access device;
(c) Unauthorized Access Device — means any access device
that is stolen, lost, expired, revoked, canceled, suspended,
or obtained with intent to defraud;
(d) Access Device Fraudulently Applied for — means any
access device that was applied for or issued on account of
the use of falsified document, false information, fictitious
identities and addresses, or any form of false pretense or
misrepresentation;
(e) Consumer — means a natural person;
(f) Credit Card — means any card, plate, coupon book, or
other credit device existing for the purpose of obtaining
money, goods, property, labor or services or any thing of
value on credit;
(g) Device Making or Altering Equipment — means any
equipment, mechanism or impression designed or primarily
used for making or altering or reencoding an access device
or a counterfeit access device;
(h) Finance Charges — represent the amount to be paid by the
debtor incident to the extension of credit such as interest
or discounts, collection fees, credit investigation fees,
and other service charges;
(i) Open-end-credit plan — means a consumer credit extended
on an account pursuant to a plan under which:
1) the creditor may permit the person to make purchase or
obtain loans, from time to time, directly from the creditor
or indirectly by use of credit card, or other service;
2) the person has the privilege of paying the balance; or
3) a finance charge may be computed by the creditor from
time to time on an unpaid balance.
(j) Penalty Charges — means such amount, in addition to
interest, imposed on the credit card holder for non-payment
of an account within a prescribed period;
(k) Produce — includes design, alter, authenticate,
duplicate or assemble; and
(l) Trafficking — means transferring, or otherwise disposing
of, to another, or obtaining control of, with intent to
transfer or dispose of.
Sec. 4. Credit Card Application and Solicitation. — Any
application to open a credit card account for any person
under an open-end credit plan or a solicitation to open such
an account, either by mail, telephone or other means, shall
disclose in writing or orally, as the case may be, the
following information:
(a) Annual Percentage Rate
1) Each annual percentage rate of interest on the amount of
credit obtained by the credit card holder under such credit
plan. Where an extension of credit is subject to a variable
rate, the fact that the rate is variable, and the annual
percentage rate in effect at the time of the mailing.
2) Where more than one rate applies, the range of balances
to which each rate applies.
(b) Annual and other Fees
1) Any annual fee, other periodic fee, or membership fee
imposed for the issuance or availability of a credit card,
including any account maintenance fee or any other charge
imposed based on activity or inactivity for the account
during the billing cycle.
2) Any minimum finance charge imposed for each period during
which any extension of credit which is subject to a finance
charge is outstanding.
3) Any transaction charge imposed in connection with use of
the card to purchase goods or services.
4) Any fee, penalty or surcharge imposed for the delay in
payment of an account.
(c) Balance Calculation Method — the name or a detailed
explanation of the balance calculation method used in
determining the balance upon which the finance charge is
computed.
(d) Cash Advance Fee — any fee imposed for an extension of
credit in the form of cash.
(e) Over-the-Limit-Fee — any fee imposed in connection with
an extension of credit in excess of the amount of credit
authorized to be extended with respect to such amount:
provided, however, That in case the application or
solicitation to open a credit card account for any person
under an open-end consumer credit plan be made through
catalogs, magazines, or other publications, the following
additional information shall be disclosed:
1) A statement, in a conspicuous and prominent location on
the application or solicitation, that:
i) the information is accurate as of the date the
application or solicitation was printed;
ii) the information contained in the application or
solicitation is subject to change after such date;
iii) the applicant should contact the creditor for
information on any change in the information contained in
the application or solicitation since it was printed;
(2) The date the application or solicitation was printed;
and
(3) In a conspicuous and prominent location on the
application or solicitation, a toll free telephone number or
mailing address which the applicant may contact to obtain
any change in the information provided in the application or
solicitation since it was printed.
Sec. 5. Computations. — In addition to the foregoing, a
credit card issuer must, to the extent practicable, provide
a detailed explanation and a clear illustration of the
manner by which all charges and fees are computed.
Sec. 6. Exceptions. — The disclosures required under Sec. 4
of this Act may be omitted in any telephone solicitation or
application if the credit card issuer:
(a) does not impose any fee in connection with paragraph
(b)(1), Sec. 4 of this Act;
(b) does not impose any fee in connection with telephone
solicitation unless the consumer signifies acceptance by
using the card;
(c) discloses clearly the information described in Sec. 4 of
this Act in writing within thirty (30) days after the
consumer requests the card, but in no event later than the
date of delivery of the card; and
(d) discloses clearly that the consumer is not obligated to
accept the card or account and the consumer will not be
obligated to pay any fees or charges disclosed unless the
consumer elects to accept the card or account by using the
card.
Sec. 7. Disclosure Prior to Renewal. — Except in telephone
solicitations a card issuer that imposes any fee described
in Sec. 4 shall transmit to a consumer's credit card account
a clear and conspicuous disclosure of:
(a) the date by which, the month by which, or the billing
period at the close of which, the account will expire if not
renewed;
(b) the information described in Sec. 4 which shall be
transmitted to a consumer at least thirty (30) days prior to
the scheduled renewal date of the consumer's credit card
account;
(c) the information described in Sec. 4 (a) (1) which shall
be transmitted to a consumer's credit card account; and
(d) the method by which the consumer may terminate continued
credit availability under the account: Provided, That the
disclosures required by this Sec. must be made prior to
posting a fee described in Sec. 4 (b) (1) to the account, or
with the periodic billing statement first disclosing that
the fee has been posted to the account subject to the
condition that the consumer is given thirty (30) day period
to avoid payment of the fee or to have the fee recredited to
the account in any case where the consumer does not wish to
continue the availability of the credit.
Sec. 8. Failure to Disclose. — Credit card companies which
shall fail to disclose the information required under Sec.s
4, 5 and 7 of this Act, after due notice and hearing, shall
be subject to suspension or cancellation of their authority
to issue credit cards by the Bangko Sentral ng Pilipinas,
Securities and Exchange Commission and such other government
agencies.
Sec. 9. Prohibited Acts. — The following acts shall
constitute access device fraud and are hereby declared to be
unlawful:
(a) producing, using, trafficking in one or more counterfeit
access devices;
(b) trafficking in one or more unauthorized access devices
or access devices fraudulently applied for;
(c) using, with intent to defraud, an unauthorized access
device;
(d) using an access device fraudulently applied for;
(e) possessing one or more counterfeit access devices or
access devices fraudulently applied for;
(f) producing, trafficking in, having control or custody of,
or possessing device-making or altering equipment without
being in the business or employment, which lawfully deals
with the manufacture, issuance, or distribution of such
equipment;
(g) inducing, enticing, permitting or in any manner allowing
another, for consideration or otherwise to produce, use,
traffic in counterfeit access devices, unauthorized access
devices or access devices fraudulently applied for;
(h) multiple imprinting on more than one transaction record,
sales slip or similar document, thereby making it appear
that the device holder has entered into a transaction other
than those which said device holder had lawfully contracted
for, or submitting, without being an affiliated merchant, an
order to collect from the issuer of the access device, such
extra sales slip through an affiliated merchant who connives
therewith, or, under false pretenses of being an affiliated
merchant, present for collection such sales slips, and
similar documents;
(i) disclosing any information imprinted on the access
device, such as, but not limited to, the account number or
name or address of the device holder, without the latter's
authority or permission;
(j) obtaining money or anything of value through the use of
an access device, with intent to defraud or with intent to
gain and fleeing thereafter;
(k) having in one's possession, without authority from the
owner of the access device or the access device company, an
access device, or any material, such as slips, carbon paper,
or any other medium, on which the access device is written,
printed, embossed, or otherwise indicated;
(l) writing or causing to be written on sales slips,
approval numbers from the issuer of the access device of the
fact of approval, where in fact no such approval was given,
or where, if given, what is written is deliberately
different from the approval actually given;
(m) making any alteration, without the access device
holder's authority, of any amount or other information
written on the sales slip;
(n) effecting transaction, with one or more access devices
issued to another person or persons, to receive payment or
any other thing of value;
(o) without the authorization of the issuer of the access
device, soliciting a person for the purpose of:
1) offering an access device; or
2) selling information regarding or an application to obtain
an access device; or
(p) without the authorization of the credit card system
member or its agent, causing or arranging for another person
to present to the member or its agent, for payment, one or
more evidence or records of transactions made by credit
card.
Sec. 10. Penalties. — Any person committing any of the acts
constituting access device fraud enumerated in the
immediately preceding Sec. shall be punished with:
(a) a fine of Ten thousand pesos (P10,000.00) or twice the
value obtained by the offense, whichever is greater and
imprisonment for not less than six (6) years and not more
than ten (10) years, in the case of an offense under Sec. 9
(b)-(e), and (g)-(p) which does not occur after a conviction
for another offense under Sec. 9;
(b) a fine of Ten thousand pesos (P10,000.00) or twice the
value obtained by the offense, and imprisonment for not less
than ten (10) years and for not more than twelve (12) years,
in the case of an offense under Sec. 9 (a), and (f) of the
foregoing Sec., which does not occur after a conviction for
another offense under Sec. 9; and
(c) a fine of Ten thousand pesos (P10,000.00) or twice the
value obtained by the offense, or imprisonment for not less
than twelve (12) years and not more than twenty (20) years,
or both, in the case of any offense under Sec. 9, which
occurs after a conviction for another offense under said
subSec., or an attempt to commit the same.
Sec. 11. Conspiracy to commit access device fraud. — If two
(2) or more persons conspire to commit any of the offenses
listed in Sec. 9 and one or more of such persons does any
act to effect the object of the conspiracy, each of the
parties to such conspiracy shall be punished as in the case
of the doing of the act, the accomplishment of which is the
object of such conspiracy.
Sec. 12. Frustrated and attempted access device fraud. — Any
person who performs all the acts of execution which would
produce any of the unlawful acts enumerated in Sec. 9 of
this Act, but which nevertheless does not produce it by
reason of causes independent of the will of said person,
shall be punished with two-thirds (2/3) of the fine and
imprisonment provided for the consummated offenses listed in
said Sec.. Any person who commences the commission of any of
the unlawful acts enumerated in Sec. 9 of this Act directly
by overt acts and does not perform all the acts of execution
which would produce the said acts by reason of some cause or
accident other than said person's own spontaneous
desistance, shall be punished with one-half (1/2) of the
fine and imprisonment provided for the consummated offenses
listed in the said Sec..
Sec. 13. Accessory to access device fraud. — Any person who,
with intent to gain for himself or for another, buy,
receives, possesses, keeps, acquires, conceals, sells, or
disposes of, shall buy and sell, or in any manner deal in
any article, item, object or anything of value which he
knows or should be known to him, to have been acquired
through the use of counterfeit access device or an
unauthorized access device or an access device known to him
to have been fraudulently applied for, shall be considered
as an accessory to an access device fraud and shall be
punished with one-half (1/2) of the fine and imprisonment
provided for the applicable consummated offenses listed in
Sec. 9 of this Act. Said person shall be prosecuted under
this Act or under the Anti-Fencing Law of 1979 (Presidential
Decree No. 1612) whichever imposes the longer prison term as
penalty for the consummated offense.
Sec. 14. Presumption and prima facie evidence of intent to
defraud. — The mere possession, control or custody of:
(a) an access device, without permission of the owner or
without any lawful authority;
(b) a counterfeit access device;
(c) access device fraudulently applied for;
(d) any device-making or altering equipment by any person
whose business or employment does not lawfully deal with the
manufacture, issuance, or distribution of access device;
(e) an access device or medium on which an access device is
written, not in the ordinary course of the possessor's trade
or business; or
(f) a genuine access device, not in the name of the
possessor, or not in the ordinary course of the possessor's
trade or business, shall be prima facie evidence that such
device or equipment is intended to be used to defraud.
A cardholder who abandons or surreptitiously leaves the
place of employment, business or residence stated in his
application or credit card, without informing the credit
card company of the place where he could actually be found,
if at the time of such abandonment or surreptitious leaving,
the outstanding and unpaid balance is past due for at least
ninety (90) days and is more than Ten thousand pesos
(P10,000.00), shall be prima facie presumed to have used his
credit card with intent to defraud.
Sec. 15. Loss of access devices. — In case of loss of an
access device, the holder thereof must notify the issuer of
the access device of the details and circumstances of such
loss upon knowledge of the loss. Full compliance with such
procedure would absolve the access device holder of any
financial liability from fraudulent use of the access device
from the time the loss or theft is reported to the issuer.
Sec. 16. Reporting requirements. — All companies engaged in
the business of issuing access devices, including banks,
financing companies and other financial institutions issuing
access devices, shall furnish annually, on or before the
31st of March of the succeeding year, a report to the Credit
Card Association of the Philippines regarding access device
frauds committed against the holders of such entities in the
preceding calendar year, for consolidation and submission to
the National Bureau of Investigation.
Notwithstanding this requirement, banks, financing companies
and other financial institutions, including their
subsidiaries and affiliates, issuing access devices shall
continue to be regulated and supervised by the Bangko
Sentral ng Pilipinas while other companies issuing access
devices shall continue to be regulated and supervised by the
Securities and Exchange Commission.
Sec. 17. Liability under the Revised Penal Code and other
laws. — Prosecution under this Act shall be without
prejudice to any liability for violation of any provision of
the Revised Penal Code or any other law.
Sec. 18. Separability clause. — If any separable provision
of this Act be declared unconstitutional, the remaining
provisions shall continue to be in force.
Sec. 19. Repealing clause. — Any law, presidential decree or
issuance, executive order, letter of instruction,
administrative order, rule or regulation contrary to, or
inconsistent with, the provisions of this Act is hereby
repealed, modified or amended accordingly.
Sec. 20. Effectivity clause. — This Act shall take effect
fifteen (15) days after its publication in at least two (2)
newspapers of general circulation.
Approved: February 11, 1998.
