After reading Voluntary Cessation Of Credit Card Business, read also Handling of Credit Card Related Complaints, Inquiries and Requests
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A credit card issuer refers to a bank or a corporation that offers the use of its credit card
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A credit card issuer may undertake voluntary cessation of its business
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A request for approval of a voluntary cessation of business shall be accompanied by a plan of cessation of operations
In relation to Republic Act No. 10870 or the “Philippine Credit Card Industry Regulation Law”, the Bangko Sentral ng Pilipinas issued Circular No. 1003, Series of 2018 (BSP Circular No. 1003-18) which pertains to Guidelines on the Establishment and Operations of Credit Card Issuers to Implement Republic Act No. 10870 or the Philippine Credit Card Regulation Law.
For recollection, credit card issuer refers to a bank or a corporation that offers the use of its credit card.
May a bank undertake voluntary cessation of its credit card business?
BSP Circular No. 1003-18 says:
Yes.
A bank may undertake voluntary cessation of its credit card business provided that it notifies the appropriate department of the Supervision and Examination Sector (SES) and submits a plan of cessation of operations within ten (10) banking days from date of approval of such cessation by the bank’s Board of Directors.
May a non-bank credit card issuer undertake voluntary cessation of its credit card business?
BSP Circular No. 1003-18 says:
Yes.
A non-bank credit card issuer may undertake voluntary cessation of its credit card business only upon prior approval of the Monetary Board provided that the requests for approval of voluntary cessation of business shall be accompanied by a plan of cessation of operations duly approved by the credit card issuer’s Board of Directors. Such request for approval of voluntary cessation shall be submitted to the Monetary Board within ten (10) banking days from approval of the plan of cessation of operations by the credit card issuer’s Board of Directors.
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