Cheerful Pinoy: February 2010

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;

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.

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;

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;

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;

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

Cheerful Pinoy

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REPUBLIC ACT NO. 8484

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