After reading Suspension, Termination of Effectivity and Reactivation of Credit Cards, read also Confidentiality of Information of The Credit Card Holder
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A cardholder may cancel his credit card account with any bank anytime
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A bank may initiate suspension of a credit card account for any valid reason
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The credit cardholder has the right to appeal the suspension of his credit card
Under Republic Act No. 10870 or the Philippine Credit Card Industry Regulation Law, banks shall formulate criteria or parameters for suspension, revocation and reactivation of the right to use the card, and shall include in their contract or agreement with cardholders a provision authorizing banks to suspend or terminate the credit card effectivity, if circumstances warrant.
Should a credit cardholder be notified of the termination of his card?
The law says:
A bank may initiate suspension, cancellation or revocation of a credit card account for any valid reason, as indicated in the terms and conditions of the credit card agreement provided that the cardholder is notified of the suspension/cancellation/revocation within seven (7) business days from the date of suspension/cancellation/revocation subject to mutual agreement with the bank. The credit cardholder shall have the right to appeal the suspension/cancellation/revocation subject to mutual agreement with the bank.
On the other hand, a cardholder may cancel or terminate his or her credit card account with any bank anytime. However, the cardholder shall either pay in full, or enters into another agreement for payment of the outstanding balance and new purchases, debits and deferred installments. Payment may be made either through a one-time payment or on installments within a fixed period of time. Also, the repayment in installments shall only be generally subject to interest, unless there is a violation of the above-mentioned new agreement.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding illegal dismissal, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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