What Happens If I Don’t Pay My Credit Card Debts?
This article is posted under Personal Finance.
What will happen if you don’t pay your credit card debts? Will you go to jail because of it?
These and a lot of other questions about credit cards have been answered below, courtesy of a credit card officer which I had the opportunity to interview.
Due to the sensitivity of the topic, the credit card officer, who currently works in one of the largest banks in the country, requested me to make his/her identity anonymous.
Moreover, he/she says that the answers provided are solely based from his/her knowledge and may differ from how other banks conduct their business. Thus, one should NOT consider the information below as an absolute fact that applies to all cases.
Lastly, please be guided that the answers given in this article is NOT intended to replace the advice of your financial adviser or legal council.
And with that disclaimer said, let’s now go to the credit card questions.
What happens if I don’t pay my credit card debts?
When you default on your payment, the bank will flag you as a delinquent card member. They will call you to remind you to pay.
If you continue your non-payment, the calls will be more frequent until you reach a pre-determined number of missed payments. After which the bank will dismiss your case and turn your account over to a collection agency.
The collection agency is not a part of the bank. They are a third-party business who buys the delinquent accounts. The collection agency will now take over the responsibility of convincing you to pay your credit card debt. Whatever they collect from you becomes their profit.
You said collection agencies BUY the delinquent accounts?
Yes, the bank sells the accounts to them. This will minimize the bank’s loss. The costs (legal and otherwise) that will incur if the bank continues to pursue the delinquent account can be expensive. Asides, it’s not worth their time anymore – that’s a simple way to explain it.
Furthermore, the bank cannot just freeze and take the money in your savings account to pay for those debts. They would need to have a court judgment against you to make it legal for them to do that. And that will again, cost them money and can take a long time.
So what happens when your account is turned over to a collection agency?
Then it just remains there. The collection agency will do their best to convince you to pay because that’s how they will make money.
I know there are a lot of horror stories when it comes to credit card debt collection. That’s a sad reality that many people around the world actually experience. The best thing to remember is that all those are just empty threats so stay calm and don’t worry.
Will I really go to jail if I don’t pay my credit card debt?
No. That’s the most honest answer I can give you.
To my knowledge, nobody has ever gone to jail for not paying their credit card debts. Why? Because incurring debt is not considered a criminal act. Of course, this is assuming that you just simply failed to pay your credit card debts for whatever reason.
It’s important to know that circumstances will be different if you have issued a check or has signed a contract because a bouncing check or a breach of contract can be turned into a criminal case such as estafa.
That’s why some collection agencies will try to make you issue checks or sign a payment agreement because that could give them legal grounds to file a real case against you.
How about my credit history?
Not paying your credit card debt will reflect badly on your credit history. Which means it will be difficult for you to get a personal loan when you need one.
Aside from that, some companies do check the credit history of their job applicants so a bad credit history may affect you if you’re looking for employment.
Honestly, there’s no definite list of ways how a bad credit standing can affect you negatively but trust me, it can and it will.
There is some good news though. Your bad credit history will actually not remain in your record forever.
It will be erased after several years BUT NOT because you’ve been “forgiven” but because the computer database is close to full already and it needs to purge some old data.
And with higher capacity computers becoming more available nowadays, the time it will take for your bad credit history to disappear can and will become longer.
So what is the worst case scenario if I don’t pay my credit card debts?
The worst case scenario is that first, you would have to live by cash for the rest of your life. Thinking of buying a house or a car someday? Then start saving for it now because chances are, you won’t be able to get a loan from any bank.
Secondly, you would have to deal with calls, letters and threats from credit card collection agencies for a very long time. Sure you can just ignore them but they do find ways to involve your family and friends in the situation.
I think personally, that’s the worst part of not paying your credit card debts – having to deal with the worry and unnecessary burden that collection agencies can possibly bring your loved ones. That is personally something that my conscience can’t take.
Thank you for your time, any advice to my readers?
Always be conscious of your credit card spending and be smart with your finances.
But if unfortunately, circumstances work against you and you find yourself deep in credit card debt – then my advise is really not to worry.
Be honest and tell your family and friends regarding your situation so they can offer a support system. And lastly, consider the option of getting a financial planner to help you fix everything.
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This post is part of the article collection, All About Credit Cards. Start improving your finances today and subscribe to Ready To Be Rich.
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Photo credit: Andres Rueda and vipez
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Hi, my name is Fitz and this is my blog entitled, Ready To Be Rich.
I must admit, I have a pending loan with which I have not yet paid since I still don’t have a job. My daily earnings right now is not almost even with my expenses.
Anyway, they keep on calling me before and telling me that they investigate if I really don’t have the capacity to pay, as well as they will cease my valuable things and others.
I keep telling them to that they are very much welcome to my place and check, but they did not come.
So, my advise to everyone with the same problem is to tell the truth and be ready to prove it. They should also update the company so that they will not feel that you just want to escape from your responsibility.
And yes, be honest to your family members and friends about it. But of course, choose the ones who you think can help. Some of them may just be adding your problems by telling it to everybody, which may ruin your image.
This is great information Fitz! I keep only one credit card with a low credit limit. If I decide to pay it all in one month, I can easily do it. This way, I can control my spending. I don’t want to be caught in any downward spiral involving credit card debts.
thnx for the advise on this issue…
thanks for sharing!
this is like “Killing me softly””…
Very informative. I’m really trying to eliminate my credit card debt now. I never liked being in debt.
Very nice article
Like others who have read this–I am trying to rise from my poor financial choices when I was younger
I am currently paying my cc but still struggling.
May I re-post your article at my blog?
With link to this post, as well as a proper acknowledgment to the author and this site.
Thank you!
It’s tempting to NOT pay your debts and learn to live with it…But the reality is, it is much harder to face yourself in the mirror knowing that you owe someone and you didn’t pay him what he is due. In my opinion, I’d rather pay it and learn a thing or two about taking care of my own finances than living a life of constant worry and hiding away from collectors. Running away from debts is not a way to live a financially abundant life.
Hi Fitz, nice interview there. Since I have a background on credit cards, definitely, no one will get into jail because of non-payment of credit card debts. Why? The case that you are going to face for non payment is what you call “SUM OF MONEY”. It is a civil case and not a criminal case so you won’t be jailed. This is in contrast if you have bounced checks which is a criminal case and that’s what you call BP22 or Batas Pambansa 22.
However, even if you did not get into jail because of non payment of credit card debts, you will surely be blacklisted if you are availing a loan or a credit such as housing loan, car loan, etc. This is because as you have said, the bank already put your name into the deliquent accounts and all banks share their database of delinquent ascounts.
Also, yes, the bank will turn over the deliquent account to a collection agency which is not part of the bank. These agencies usually get paid if and only if they were able to collect payment from the debtor. Thus, their service is called “no cure, no pay” basis.
does it mean that you can pay a minimal amount (not the amount demanded from you) just to give tell them that you wont run away from your unpaid credit?
Thank you everyone for sharing your thoughts.
@Lani – sure, thanks for asking.
Thank you for this article Fitz.Finally, my questions about what will happen if i don’t pay is answered. I cant ask my friends because Im afraid…afraid that they would make chismis about my credit card problem. It’s not that ” i dont want to pay”…but we have financial problems now. I have 3 kids & my husband’s salary is just enough for our monthly expense. We wanted to settle our accounts but the collection agency is demanding us to pay in full… & we cant do that.
Some even say that it will appear in NBI records if we dont pay. Is it true?
the article is very enlightening. but what does someone do if a collection agency persists in collecting even if the debt has been settled years ago?
this has happened to me. in the latter part of the 1990s, i settled all my credit card debts incurred under bankard. now after these many years, this collection agency sent me a letter urging me to pay up or else they would haul me to court. this they followed up with a phone call. i have told them that i have already settled that account but unfortunately i misplaced the documents proving that the debt has already been paid up. what can i do under the circumstances? please help…thanks a lot.
Hi, very informative. Thank you very much.
I was reading inquirer’s articles and i encountered the “Credit Info Database” article posted last 1/28/10… i just want to share it. here’s the link…
http://business.inquirer.net/money/columns/view_article.php?article_id=249990
How long does a bank keeps the record of their delinquent accounts?
A person with bad credit history can’t get loans from banks, does it include the Pag-ibig Housing Loans and the SSS housing loans?
thanks again
Reminds me of the “Shopaholic” movie!
Nice site.
No one can be imprisoned from debt, know the distinction of civil obligation from estafa.
http://panyero.net/nakulong-sa-utang/
First, when you apply for a credit cards, there is something that if you can’t pay your debt on your credit cards they will have something to get your things.
Fitz, what advice do you have for those who are looking to repair their credit?
One thing that was not mentioned here is if the debt is significant enough, sometimes the credit card company will pursue legal action (instead of selling to a collection agency). If they do this, the consumer will receive a court summons. If a judgement is place on the debt by a judge, then you can run the risk of your checking account being garnished (which basically means the creditor can take the money out without your permission) or your paycheck will be garnished. So, it’s not always cut and dry where the creditor just sells it to a collection agency. Some of them will come after you legally for the money.
Warning! Credit Card Collection Scam in the Philippines:
http://www.equalizerpost.com/2009/12/warningcredit-card-scam-in-philippines.html
Debt collectors have been the most complained-about people in the credit card business.And abuses by out-of-control collectors appear to be getting worse.
Domingo and Molaer Collection Harassment!
http://www.equalizerpost.com/2010/01/domino-molaer-dealing-with-debt.html
Well it is true that you won’t go to jail if you don’t pray your credit card debt.
However bear in mind that according to the Access Devices Regulation Act of 1998 (Republic Act No. 8484) “A cardholder who abandons or surreptitiously leaves the place of employment, business or residence stated in his application for 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), shall be prima facie presumed to have used his credit card with intent to defraud.”
So in other words you can somehow be imprisoned for credit card debts ! But technically speaking you are imprisoned here because of the presumption of “fraud” and not really for non-payment of credit card debt. (As guaranteed by the 1987 constitution article 3, sec. 20 that nobody shall be imprisoned for debt)
After a long months of non-paying of personal loan to the bank way back last quarter of 2008, the account been transferred to a different collection agencies / lawfirms. Receives demand letters, but there’s this one agency who handled the account recently who’s text stating they’ll publish the account’s photo on newspaper . Is it legal for a lawfirm agencies to publish your photos on newspaper for the unpaid personal loan (P33,000 included the long overdue interest) without proper court litigation?
Thanks for the information. I’m in a bad credit card situation now and i’m afraid to tell it to my family. i want to solve it on my own.
Filing cases in court based on 10K or above loan is not an option collection agencies would take because the filing fee for a case in court is much higher than that. Got this info from a contractor pal of mine. He got a demand letter from a lawyer with a threat of a court case. Never did happen because the contested amount was not worth the cost of full blown court case. And the threat of publishing your name or account for unpaid debts is again an empty threat in my opinion. Its like putting you in on trial by publicity. I don’t think any paper would entertain those things without legal basis. If this is indeed possible then a lot of papers would be publishing those bad debtors … again without factoring legality of such action the cost of publishing just to make you pay is not at all feasible. Again getting a court order to freeze or take your personal bank deposit or personal items from your home or very home even is a very complicated legal process but then again there are lawyers who actually make a living out of this and are very resourceful. So if the amount is considerable then the lawyers of those collection agency would indeed work hard to get that court order. To be in a bad credit listing is really a hassle once you try to get a loan. An office mate of mine who even after she paid off her credit card was unable to get a loan from a bank. She was denied because her name was still in the bad credit listing. And it was almost a year when she already settled her debt with her credit card. Its like a bad dream only difference is it haunts you when your awake.
Stop Credit Card Collection Harassment In The Philippines!
http://www.equalizerpost.com/2010/03/stop-unfair-credit-card-collection.html
Thank you for the very informative post, i am also a recipient of a demand letter from Domingo & Molaer Law Offices that was sent to me last March 2009. However, until today after applying for a checking account with my bank I was informed that I have been flagged for bad credit made in 2000 until I settle it and show proof or certification coming from the bank they will not give me a checking account and it will also be subject for approval of the branch manager. My card is under Bankard, and I remember very well that during that time I was able to negotiate with the collecting agency to pay only the principal if I do it within the same day which I did. Unfortunately like Jun, I have lost all of the documents since I’ve been married since and moved out my parents house.
This incident happened years ago and I can say I have matured financially and been able to be debt free since I’ve been married 8 years ago. I am planning to put up my own business now and these bad credit history will be a problem esp. in my application for a checking account which I need instead of exchanging cash, application for credit to create bigger opportunities for my business…etc. Like I said, this was years ago and financially different right now…even if they check on my current credit card standing they will see that I always settle by account before its due date. I would like to erase this bad credit history rating, any advice will be greatly appreciated.
Thank you!
Just wondering,what should i do if the credit card company failed to dispute unauthorized transaction?I was billed almost P72k on my acct,victim of fraud..coordinated with the bank and the merchant already but it is still under investigation though.So scared on what to do,if it won’t be disputed.Any advice?tnx.
kudos to this article! very enlightening!
Understandably, having a bad credit history can affect all future applications for loans, etc. but in the event that all credit card debt has been settled, is there a way to improve bad credit rating?
thanks for posting dis article. i have credit cards and loans and i cannot afford to pay them all particularly my credit card. Its not that i dont want to pay but i cant pay right now. My bf and i are going to Macau for 1 week vacation. Does non payment of credit cards will hold me in the airport for non payment?
Thanks everyone for sharing your stories and adding more information regarding the topic.
@Len, you don’t have anything to worry about, just let the investigation run its course. If the worst should happen (which most likely would NOT), then negotiate with the bank for a lowest amount you can afford to pay. Just my two cents.
@Kat, your bad credit rating will eventually become better as it moves farther from the present. My advise is to try to get a few small loans you can afford to pay so you can “overshadow” the bad credit you incurred in the past.
@anne, for a simple non-payment of credit card debts, NO you won’t be held up in the airport.
hi fitz,
your site is very informative to delinquent cc holder like me.
i’ve been receiving harassment calls and visits from the
collection agency that hsbc sold my account with. I have no choice but to say that I no longer live in the house that they are calling. It’s true, i moved across another house but within the compound as well. Technically, same address but another house. The landline # that they are calling is not mine but my mother’s. I’ve already contacted hsbc to have a payment arrangement so i could settle my debts, but these crooks still haunts me. Am i liable to hsbc for ra8484 because i declared I no longer resides to the address? But Im still here, just another house
Good morning !
About credit card collection, Someone called me up to settle my obligation, she told me that she will give me a 167% discount for my unsettle account..
Is it true that the collection department can give this large amount of discount like this?
Thank you
Question for you: I have credit cards in Canada that I’m unable to pay. I moved in the USA in December 2006. Is it still my obligation to pay them, since I don’t own any property, home, assets, etc… in Canada?
hi po.
I have the same issue po with them. But in my case. I’m still a student. Pero i tried my very best to pay my balance every month in time. Pero po ang laki po talaga ng interest nila. ung metrobank po. tapos ngaun po may tumawag skin na bakla na from summit collection daw. sinasabihan nya ako kanina na mgpay daw ako ng half of my outstanding balance before april 25 kng hndi po daw idedemanda po daw nila ako. Tapos malalaman po ng school ko ung nangyayari. akala ko private situation po ito. d ba? tapos sabi pa nya na mkukulong daw ako. at kanina tinanong kng mgkano pera ko sabi ko 5thousand lng sabi nya kng kaya ko daw ba maghanap ng 10thousand para 15k ung mabayad ko before 12NOON sabi ko tomorrow lng ako mgbayad. tama ba ito? help me po. i really need your advice. mgwork na nga po ako e.
Sir Fitz,
Thank you very much for all the info… it helps me a lot
a must-read for anyone who owns a credit card! learned a lot. thanks fitz!
Hello there,
I have the same problem. I was so shocked this morning when I received a call threat from collections agency. He was forcing me to pay my unpaid debts for 5months na 31k na dati 21k lang. Sabi kung di ko daw mabayaran yun within this day magffile sila ng demanda against me..Estafa.
Pero natatakot din ako kasi baka makulong ako dahil sa (Republic Act No. 8484), dahil nagresign ako sa work ko na di ko iniinform ang HSBC.
Makkulong or maddemanda parin po ba ko dahil dito?
Thank you so much in advance!
for how many years will my credit card account stay in the records of the debt collection company i am already paying (though small amounts only) for at least a year now…tnk you
u sure ba na until now wala pa din nakukulong for not paying their credit card debts??
Hay grabe!! I have unsettled credit card balance from AIG & Citibank wayback yaer 2001. But then I thought since it is almost 10 years ago my record will be clear so when HSBC offered me to avail their credit, after some confirmation of my records at home & office I was informed that my application has been denied.
After 1 to 2 days I have received a call from an Agency holding my AIG account and asking me to pay 1t least 40% of my total outstanding balance and I will be clear.
I was so afraid co’z I have just avail a housing through Pag-ibig and my savings will be enough for my monthly amortization.
And according to my friend previously harassed co’z of her HSBC account better not to pay them co’z after paying the 40% the agency will still insist that I am not yet clear with the.
Is that true? Please advise me co’z my priority now is my house amortization.
hello,may cc dept din po ako,a collection agency wrote a demand letter to pay may dept. Tumawag po ako sa kanila para makipa arrange and ask them kung ano ang pwd kung gawin dahil hindi ko kayang bayaran in full, kung pwd ba sya in monhthly basis para lang mabayaran ko,They offered me pero hindi ko parin kaya dahil ang 26thow ko ay maging 80thplus daw payable for six mos.sabi nila kung d koraw mabayran e sa korte nalang daw kami magkikita….natatakot po talaga ako,sana po mabigyan nyo po ako ng advice kung ano po ang pwd kung gawin…thnak you…
What would happen if i left the country where i got an unpaid credit cards…like Dubai?
@Danila Perez
If you are already in the Philippines, then you are safe in my opinion because you are no longer subject to the credit card debt laws of Dubai. However, I am not an authority on this, better consult a lawyer to get more accurate information.
hi,
re: cc debts..how much is considered significant amount for them to pursue a legal case .I have a debt amounting to 300K++ interest on one of the ccs(have several ccs).waiting for your reply .thnx
After two years of non-payment, I have now the means to pay my debts. How should I go about it? Should I pay to the bank who originally issued the cc or to the collection agency? Thank you.
im here in dubai and im not paying my creditcard almost 1year maybe its around 10,000 drhms,and this coming dec.im go back in the philippines for my vacation,my question is the immigration in the airport will hold me they will detained me and bring me in the jail,what will happen to me?tahnk u i hope somebody will answer my question,.
Hi Fitz, I have two questions.
I have a personal loan from Citibank. It’s a non-collateral loan. But I noticed in the fine print of the promissory note about “liens to property and accounts.” Does this mean that my savings and other assets be frozen by Citibank?
Does the promissory note which I originally signed with Citibank constitute evidence/grounds for estafa in case I fail to pay during times of financial difficulty?
Thank you.
I’m not a lawyer but this is my ongoing experience…
Stopped payying cc debt in Jan. The usual threats nad phone calls began. I’m currently in bargaining for about 40% on the dollar, and my credit report will read Paid In FUll….
One cc company filed a lawsuit. I answered . Two weeks later they offered me a settlement of 35% on the dollar. We’re discussing Paid in full on credit reports right now.
I feel about as morally obligated to them as they did when they reduced my credit line, then used the debt ratio to increase my credit card rates to loan shark rates..
look around online….It takes timeand mental toughness but the card companies will take just about whatever they can get right now.
Hi
Three years ago, I was in Canada and I stayed there for 3 years and a half. I got a credit card and I was doing well till some problem happened to me so I spent all the money which was really a lot. Now I am outside Canada( live in africa). I didnt pay back a cent cuz it was really alot. Now, I am moving to Australia. do you think I can get a prepaid credit card without any problem there and no calls and stuff. Thanks in advance
Hi ,
This site is very informative. I used to have an account from hsbc and failed to pay for sometime because of financial issues until it got settled with paying only 20% of the total due that they originally charged me. This was mostly accumulated charges. As far as i know I have already settled this but until now a few years after I seem to be in the blacklist. How do I know if I am already cleared?
To Miss Dotie,
Maybe 5years after na mabayaran mo lahat ng utang mo sa HSBC saka pa lang ma-clear ang pagka-blacklist mo sa lahat ng banks. Temporarily, kailangan mo ng certification from hsbc para may ipakita kang clear ka na kung plano mo pa kumuha o mag-loan sa mga banks
Can someone give information regarding their policies for deceased clients. The credit card company blocked the principal’s credit cards and his suplimentary cards. Are the spouse or children required to pay the principal’s debt? What about the points gained… can they redeam them?
State:- Kansas
I was in US for 3 years on student visa.Everything was going fine but one day i got DUI and my the bad starts.I lost my driving license and lost my part time job also.I start using my credit cards to pay my bills and living.I got a debt of around 45000$,as i got all the credit cards after putting the false information that i am resident of US but i have got the SSN.After that i came back to India in 2007.But now i am again planning to visit US after 6 months.Can anyone provide me information what will be the consequences i need to face in US ?Do i have to face any criminal charges against me or they can arrest me at the airport?
Thanks
Hi Sir,
I have a cc debt tinatawagan ako ng collection agent at ififile daw nila ang kaso laban sa akin mau ocular inspection daw pong gagwin yung mga pulis sa bahay o sa opis namin at natatakot po ako. 16,000 ang debt ko pinagbabayad nila ako ng 32,000. They make arrangement daw po pero di ko pa rin kaya ang amount na dapat kung bayadan. Anu po b dapat kung gawin tulungan nyo naman po ako.
i wasnt able to pay my credit card worth Php 15,000 for only one week. but i was able to pay it after one week of due date. my husband wants to loan a car. will a bank approved me?
Hi there!
i used to own a standard chartered credit card which i defaulted payment a few years ago….. my standard chartered account is with the collecting agency.
now, i’m having problems with my HSBC account. i’m quite struggling with my finances and i’m afraid that i will not be able to settle at least the minimum amount for my HSBC account. in the event, that i defaulted payment with my HSBC card, what will be the effect of it considering that i already defaulted with my standard chartered card.
hope you will be able to enlighten me with my situation right now.
I also have the same problem. I am based in Manila and parents are back in my province. My parents texted me that a policeman visited our home and told them that I’ve been doing ‘illegal things.’ They just left number and a name, a certain Atty. Jaime Chua/Cua. My mom said that people back home speculated if me doing illegal things….
And that policeman also talked to some neighbors. My mom said that people back home are thinking of so many things. My parents were clueless about this loan. It was supposed to be payable in 3 years but was unable to continue after 1.5 years
The company has my contacts, and even my office address but they opted to visit my home province? It’s really humiliating. I ‘m not sure if I will contact the person or directly coordinate with the bank.
In my mind, i know what to do – that is to settle the account. I just hope they won’t double the amount.
I need advise.
I can no longer fund personal loan checks monthly amortization. What normally bank do?
Hi,
I am in difficult situation & need advise.
I have 4 credit card of UAE having outstanding balance. I came to my Home country & unfortunatly had an Major Heart attack. After 1 month of hospitalization i was able to survive some how. As per doctors advise i cannot do any physical work now & due to which I cannot join my Job in UAE. I am jobless & do not have money to pay outstandings. My question is :-
1. I heard something about credit sheild, will that apply.
2. what legal action can be taken care by Banks now ?
Please suggest,
thanks
Hi Fritz,
Just want to ask if you could refer a financial planner who wouldn’t charge me a lot. I have googled for financial planners here in the Philippines but they are mostly connected to banks and insurance companies. I am hesitant to come to them since I have this perception that they will just “offer” me something since they are working for an institution. Plus, I have bad experience with banks in the sense that they don’t really entertain you unless you have a lot of money with them.
Thanks!
Hi Chantal, you can contact Randell Tiongson through http://www.randelltiongson.com if you need to a financial planner.
Hi everybody,
I have worked in dubai 3 years back and could not pay my credit card dues on which my overall limit was 3000 dhs only.
I was holding the Standard Chattered Bank credit card on which the overall lmit was 3000 dirhams only and i have used some around 2000 dirhams ,dont remember exactly .As my intention was not to keep the debts and clear off after coming back from the vaccation but unfortunately the situations didnt allow me to come back as my grand father was expired and the company was not ready to give much hike and parents doesnt want me to go and work for that salary .Anyways, i did not got any intimation or email from the bank but yes i have got a call from Recovery Agents from india and was saying to pay around 500 dhs atleast as it has gone to 5000dhs some late payment and etc…He said if i did not pay then they will inform the Dubai police for the entry.And they said atleast pay 1000 dhs and we will close the case ,i was ready to pay for that but i asked them for the clearance certificate and confirmation letter that i will not have any problems in future in going back to Dubai ,on which they said they dont guarante for that.And investigation about that agency through friends and relatives ,they said if u pay also they will not give anything written and kind of fraud peaple.So on next call i recieved from them i said i will pay in dubai thorugh my friends and once they came to my home also but i was out of town and my parents said he is not at home and after that no calls nothing from there side.
On searching in forums related to this issues ,i found that they will deport back something like that …as my name will reflect on the defaulters list on immigration..I also came to know that we can make some negotiation with the bank and mention ready to pay the partly limit on overall limit so that there should be any problem in entering to Dubai.Is there any way if we can find my name reflects on the defaulters list at immigration or any way to sort it out..
Please if u fine any answers let me know if i can come back to Dubai.
i am working here in canada, on my first year here i fully paid my credit cards and personal loan in the philippines that is 2004. last 2007 a collecting angency sent a letter that i had debt in my credit card rcbc card which i know that i dont have a balance before i left the country but i didnt close it.my sister show them my documents of payments they told that is the the one they are collecting to me it is rcbc credit card which i didnt used after i lost my job 2000 but i didnt closed it. and they are offering me 50% discount but i fortunately i dont have money to pay.they told to my brother who went home last month that if i will visit my family they will hold me in the immigration and file a case to me. i think they have somebody watching my family if i will be home to collectt from me. my mother is sick i like to see her but i am afraid to be hold in the immigration what will i do i dont have money to pay them. how many year the collecting agency have the right to collect to me. please help.
hi, just got a summons form court ok makati city. i live in the province. the office of the cc is base in makati. which have jurisdiction makati or my city in the provice? thanks.
jessica
i would just like to ask is the summons that you’re talking about is signed by the judge or the clerk of court or was it simply a letter that look like a summon and was signed by a lawyer? kasi some cc companies would harass their clients with some letters that look like court order were in fact it is not.
@marky mark
thanks for the quick reply.
it was signed by a clerk of court of makati and served by court authorities from my city.
jessica,
ah ok….
ano bang nangyari why you received summons from the court? coz bihira lng talaga na they would file a case against a cardholder… would you mind kng anong company ba yan?
@guerilla investor: tumpak sana mabasa ang post mo mga taong naninisi ng mga collectors gayong ayaw naman talaga nila bayaran ang cc na talaga namang ginamit at pinakinabangan nila.
Hi Fitz!
The insights you posted here about credit cards are really very informative. I also have big worries about my unpaid credit card dues for a long time. I have a long overdue credit card balance with BPI. Unable to settle it for quite some time due to some financial and other personal problems. From its original unpaid balance, it has now reached 100K since i have neglected paying it for the past 2 yrs. The account has already been turned over to a third party law firm or collection agency and i have been receiving emails reminding me of my balance. Now here’s my concern: Our company’s payroll or payroll account is thru BPI. Would the bank run after my payroll account soon or hold the deposit that gets to my payroll account since I have long overdue credit card balance with them? My payroll account though is not enrolled for auto-debit with my credit card account, but i’m afraid they might do some legal actions about it. I badly need your advice on this. I’m planning to reply the emails sent to me by the third party collection agency and make payment arrangement with them in smaller amount. Thank you!
im not pay cedit card dept in dubai for the last 3-4 years bcoz i leave dubai early for family reason in 2007, till now not pay but i want to go back to dubai again but im very scare if i go back the police will caught me in the airport. So my question is police will case me when i arrive to dubai immigration????
hi fitz
i have an outstanding credit card loan of 1 mil..I am planning not to pay my debts because my business is badly in need of cash.
all my earnings just go to my credit card payments..what shall i do.
thanks
Dear fitz,
i have the same law firm sending me threat letters and they have raised my loan to about 5x the original loan amount within a period of 3 years. i’m pretty used to the letters coming from them but this time its a little different. it says that “if legally warranted they will prosecute me for violation of r.a. 8484″ i’ve lived and worked in the same place for three years and its the first time that they changed
the theme of their demand letter saying that PSBANK has finally decided to file in court.is any of this true or is this just just another one of their threat mails?
thanks
Hi everyone.
For those who have credit card debts outside the Philippines, I would advise that you talk to a registered financial planner or a lawyer who could give you proper advise regarding your situation.
For those who are torn between paying their credit card debts and using the money for necessary expenses. I would suggest to prioritize your necessities first.
For those who have been receiving different types of letters and calls. Don’t worry – they’re still collection agencies. As I’ve said in the article, banks do not file cases in courts for credit card debts.
Lastly, it’s important that you understand that a credit card debt is different from a bank loan. Other laws will apply to that so if you’re having trouble paying your bank loans, it’s again best to consult a financial planner or a lawyer regarding your case.
is it true that you get your name blacklisted at the bureau of imigration and cannot travel outside the country if you have a deliquent cc account?
hi fritz,
i was able to pay before my cc that has been issued to me way couple of years ago, i was able to pay in on time until such time that i can no longer pay it because the company i used to work with is not giving our salary on time. ive been receiving calls, harrassments, etc. i left the house where i live as well. but after a couple of years the bank send me a letter again, i wasnt able to read the letter cause a relative got it and threw it away. am i gonna be sued or jailed because of this. please advice. am worried… thanks and more power to you…
Hi Fitz, nice site.. enlightened by problem.
I have a CC and I am not paying it for more than a year because of personal reason. And I just resigned from the company. My big problem is I have a loan at PSBank (moneycard). It would bring me to jail if I will not pay for it?
Thank you
Hi Mr Fitz,
Thanks for the very informative blogs or website.
Kahit papano I can share some information about Credit Card. Halos karamihan sa mga naglalagay ng comments ay mga card holders na di na
makayanang bayaran ang mga dues.May I just share my views to one of Sir Fitz comments or advise:
{For those who have credit card debts outside the Philippines, I would advise that you talk to a registered financial planner or a lawyer who could give you proper advise regarding your situation.}
I agree, better to consult a lawyer for a better advise.As far as I’m concern running away from from debt specially at UAE and other Arab countries is a criminal case. If filed to their court and a Police Notice handed to the authorities they can arrest the debtor.But if the debtor is already here in the Philippines they were free from arrest for UAE court does not have jurisdiction in our country.But then Interpol has a coordination to our NBI and cases from other country can still be forwarded.
[For those who are torn between paying their credit card debts and using the money for necessary expenses. I would suggest to prioritize your necessities first.}
I agree: kailangan muna nating mabuhay bago tayo makabayad ng pagkakautang.Pero wag mong hahayaang hindi nakikipag usap sa pinagkakautangan mo.Lalo na sa Banks
{For those who have been receiving different types of letters and calls. Don’t worry – they’re still collection agencies. As I’ve said in the article, banks do not file cases in courts for credit card debts.}
I beg to disagree.
Banks files court cases for violation of R.A.8484
either Credit Cards or Cash Loans and also files Small Claims Court Cases.
Wag nyo rin po balewalain ang mga letters na dumadating sa inyo baka po subpoena na yong dumating at pinabayaan nyo mawawarrant po kayo.
{Lastly, it’s important that you understand that a credit card debt is different from a bank loan. Other laws will apply to that so if you’re having trouble paying your bank loans, it’s again best to consult a financial planner or a lawyer regarding your case.}
Both debt or cash loan and credit cards are covered by the access devices law or r.a.8484.
Thanks sana po makatulong din sa inyo.
ed
Hi Fritz! Very informative piece. I have questions I think your readers need to take into consideration for their own (and mine) peace of mind. 1) Are “summons” applicable to a credit card related situation? My understanding is that “summons” are carried to you residence by uniformed policemen if you have a “personal” debt that hase been filed against you. Say that I’m right.If this happens to anyone of us here what do we do since having a credit card cannot be considered as having a “personal” debt? But I’m pretty sure that this is definitely a wrong move by any collecting agency. You should not be recieving a “summon” if you did’nt break any “credit card” rule right? If this is the case, who does these policemen represent? Can the police represent the collecting agencies? 2)Does our law say anything about the lenght of years a credit card debt can be considered “erased” or it depends on the memory of the (computer)server? 3) If an account is bougth by a collecting agency, do we still have to recieve billing statements from the credit card company? If NO, what does this mean and what should we do?
Your prompt reply will be greatly appreciated by all of us. Thanks and best regards.
Manny
@manny Summons will be given by a court if a case has been filed against the debtor. The only case that can be filed against the debtor is collection of sum of money, a civil case, assuming of course there’s no other factor aside from just failing to pay credit card debts. The lesson is, don’t be fooled by some hardened collection agencies’ tricks and gimmicks.
This is really an interesting article. I just paid my HSBC CC balance despite it was STOLEN from me. I had pride pa nun and doesnt want to pay for a stolen puchase. Pero when I need to clear everything I just gave up and end up paying.
The things is the collection agency keeps on going to our place, giving their calling cards to our neighbors and telling them to tell me I SHOULD PAY. I don’t really like how these collection agencies do their job. I just pray na kaya ng konsensya nila ganung harassment. Karma na lan yan, lahat naman tayo accountable sa actions natin.
Mr.Fitz good day. I have CC debt from BPI. My last payment was August2010. Now my debt is almost 64,000. Triple of my principal. I already talked to collections agent since December 2010. But they didnt grant my request of interest rate moratorium. I have housing loan on the same bank, evidently I cant pay my debt because Im just a minimum wage earner + housing loan. Yesterday got a mail from NG & Associates, stating that I should pay the whole amt of P63,954.18 with additional interest/penalty per month thereafter and 25% atty. fees within 10days. Otherwise we will be constrained to file an action for damages. I anticipate receiving your payment to obviate being embroiled in a costly and cumbersome litigation.
I would like to pay them because I dont want to be blacklisted but not in full, amnesty and installment would be great. I would like to email NG & Associates, but im not sure if its the right move. please help, what would happen to me and what should I do.. thank you so much! God Bless!
My ex wife apparently ran up a P25,000 credit card bill before she moved to the US 6 months ago, I have a court judgement to say that I can live in the house which is in my ex wifes name, I’ve been receiving notices at the house for my ex wife from a collection agency,
Can the collection agency put a lein on the house or seek a court judgement to have it foreclosed.
Hi Don, as far as I know and based from the lawyer I asked, the answer is no, the agency cannot do that.
thankyou very much, you are very helpful and appreciated by all.
is it true po ba na pag di daw na locate kung saan ung place ng debtor e ipapa warrant daw po nila .
I would like to seek an advice. I had a Citibank credit card before and my sister was my supplementary. Since I worked abroad I have not been using my card, but my sister in the Philippines used it for a while and she was only paying the minimum due amount until such time that it went up to more than Php100,000 due the late charges & credit charges that continuously built.
We have been receiving frequent calls from Citibank, and later from collections agency. Two years ago, I asked for an amnesty with Citibank. They told me to issue 48 pdc checks for the payment that we have agreed upon which is payable in 4 yrs. Unfortunately, due to lack of knowledge with regards to paying debts by checks, I issued the pdc checks as they have requested. Now I completed paying 2 years, but I am having financial difficulty at this time because I loss my job and I am supporting my father for his medications. I would like to send a letter to Citibank to inform them of my current situation and that I am unable to continue the payment and I do not foresee being able to pay the remaining balance in full. But I am willing to raise a certain amount (Php10,000) and offer as the final & full settlement of my debt. Do you think they will accept my offer? I am worried about the pdc checks I issued to them, I believe they can file a case against me for a bouncing check. Can somebody tell me what is the best thing I should do? Thanks.
I would like to seek an advice. I had a Citibank credit card before and my sister was my supplementary. Since I worked abroad I have not been using my card, but my sister in the Philippines used it for a while and she was only paying the minimum due amount until such time that it went up to more than Php100,000 due the late charges & credit charges that continuously built.
We have been receiving frequent calls from Citibank, and later from collections agency. Two years ago, I asked for an amnesty with Citibank. They told me to issue 48 pdc checks for the payment that we have agreed upon which is payable in 4 yrs. Unfortunately, due to lack of knowledge with regards to paying debts by checks, I issued the pdc checks as they have requested. Now I completed paying 2 years, but I am having financial difficulty at this time because I loss my job and I am supporting my father for his medications. I would like to send a letter to Citibank to inform them of my current situation and that I am unable to continue the payment and I do not foresee being able to pay the remaining balance in full. But I am willing to raise a certain amount (Php10,000) and offer as the final & full settlement of my debt. Do you think they will accept my offer? I am worried about the pdc checks I issued to them, I believe they can file a case against me for a bouncing check. Can somebody please tell me what is the best thing I should do? Thanks.
Years ago, the CA was asking for 50% of my outstanding balance…so I said ok, then pumunta ako sa Citibank and negotiated directly with them. Ayun, 30% lang binayaran ko at me certificate pa na wala na ako utang.
The CA was sooooo PISSED! She started threatening me, I just told her to stop or sasampahan ko sya ng harassment with grave threats.
TL;DR Deretso ka sa banko makipag-nego, wag sa CA.
Umm.. hello mga sir/ma’am..
Pag pinasa na ba ng bank ang account mo sa collection department, sa bank ka prin magbabayad diba?
Makikiusapan ba mga yan? Kahit mga 3,500 lang kada buwan mahuhulog mo, papayag kaya sila?
Kinukutuban na kasi ako kasi tumawag ang bank at sinabing hindi umabot sa Minimum Payment ang nabayaran ko this month..
thanks sa mga sasagot ha…..
aw.. mali ang copy paste ko sa unang question..
yung second question talaga ang tanong ko..
sorry admin/mods…
Hi!
My due account in Bankard for 2 yrs reached to 19k. BUt I was offered by Domingo and Molaer law firm of an amnesty of 11K. I settled right away and been asking for the certificate of clearance.
Do you think I can still avail for a new card in Bankard or from other banks after I settled my old account? I actually re-applied a week after I settle my due account and spoke to Bankard customer service and they kept telling me that subject to apporval pa daw but Im doubtful that it’ll be approved.
PLease help.Thanks!
hi fitz,
I have CC from Citibank amounting to almost 100k due to penalties and interest. And collection agencies keeps on going to my house but apparently i’m not always there so my parents were talking to them. But its annoying. Kasi natatakot din ung parents ko. so gusto ko sana mabayadan but still i’m on a financial crisis. baka next year pa ko maka recover sa financial crisis and ung interest nagaacumulate pa din. when does the interest and penalties stop accumulating. I just want to pay them at least 1k each month just top finish my CC debt for as long as it takes but if the interests and penalties won’t stop, it would take forever. Does citibank file cases on court for CC debts? Thanks and more power.
ugh… paano kung ang husband ko ang may credit card tapos hindi siya nakapagbayad four months ago tapos may tumatwag sa phone at hinhanp siya hindi ko sinagot kung nassaan ang husband ko, tapos ibanaba na niya ang phone hindi ko alam kung sino siya kasi hindi niya sinagot nung tinanong ko kung sino siya. Natatakot ako na baka isang araw may dumating sabahay at kukunin ang lahat ng mahahalagang gamit, paano ang gagawin ko kung sasabihin nilang pambayad iyon sa credit card ng husband ko..
~please paki sagot lang ppo kasi wala akong idea kung paano ang gagawin kung sasabihin ko ba nasaan ang asawa ko o hindi. Nag-abroad kasi ang asawa ko.
-thanks!!
please help,
ask ko lng po kung pwede kong bayaran ung credit card ko pagpunta ko ng abroad paano ko o ma clear un na i’m not indebted anymore while im overseas. pwee ko po bang sabihin s bank o s cc na pupunta ako ng abroa then dun ko nlng continue ung pagbabayd? i’m worrying bka i hold nila ako s immigration for non payment of credit card. wla n po kc akong work s pinas kya i have to go overseas to pay my debt and to earn a living.
I have read in one of the posts here that he went directly to citibank and negotiated for a certain percentage of the total amount he owed and got the deal directly from the bank. Is this more advisable than paying through collection agencies who frequently calls and harass you? My fear is that if I pay through an agency, I would still have a bad record with the bank for whom said collection agencies are collecting payments.
Need an advise here. tnx.
hi, i left dubai with unpaid CC, but unfortunately one collecting agency is chasing me here in the philippines, they said that they represent the credit card company. is it possible for them to sue me on behalf of the bank? are they allowed under our law? thanks
Hi Chingkit!
I would be interested to get in touch with you. I have the same concern. Can I call you? How could that be possible?
Thanks!
CHamella
hi fritz just today june 2 i received a demand letter to pay my husbands cc debt amounting to 123,ooo dirhams.sa dubai kasi nag work noong una ang husband ko at na terminate sya.. grabe kinakabahan ako ,,, di ko alam ang gagawin ko nakaktakot ang letter kesyo sheriff daw mga gamit namin etc..di ko rin alam na ganito kalaki ang utang nang asawa ko.. ano kaya ang gagawin ko pag dumating ang mga collector?wala kasi d2 ang asawa ko nasa abroad uli di ko lang sasabihin kong saan pero nakaalis sya di naman sya hinarang sa airport kahit may utang sa cc.akala nga namin wala na yong utang after 2 years,, eto binulaga ako.. please ano kaya ang gagawin ko pag pumunta yong mga collector?its my first time to encounter this kind of problem.. need ur advice please..
hello everyone,
i have a huge debts in metrobank cc, umaabot 300k including interest, im still paying but its not enough to cover the minimum due…im worried now cause i have received text message from the law office requiring me to pay the whole amount due, i answered that i dont have the capacity to pay the whole amount or even half or even the minimum amount…and have some threats that they will file a case to RTC…what will happen to me? im planing to work abroad next year, ma-apektohan ba ako when acquiring VISA? since one of the requirements in visa application is mostly bank statement? what will happen to me? need your advice please
Hi,
I received a summon for unpaid credit card debt, it has been signed by a branch clerk of court. I have other obligations that i continually pay, and i really dont know what to do next. I dont have the money to pay for an attorney to assist me with this case. What will happen if i dont respond to it?
was issued a credit card when I was still in college (preapproved due to a big amount deposited under my name). I had a debt for around 17k and since do not have income back then, I was not able to settle it. Then just last week (around 14yrs after) I received another demand letter stating that I need to pay 300k plus! I know it’s my fault but I still find it ridiculous. I will try to contact the bank directly (and not the CA) and settle for the original amount in debt. If they don’t agree, then I have no plans in paying. Did I say they still send me letters 14 yrs after? hehe
I am a professional. I would like to ask if they can blacklist me from my profession, or worst, they can file for the cancellation or revocation of my license at PRC for non payment of cc debts?
Thank you,
Anne
I lived in united states for 3-4 years during my study and when I was planning to come back for some family reasons i fell short of money and I maxed out my 2 credit card worth about 4000 dollars. I came to my country with the hope that I will go back soon and pay my bills. I had temporary residence status on my student visa at that time. well I came back and situation became worse and I could not able to go back. now its about 1 and half year since I came and planning to go back. I wonder would those unpaid credit card bills will be a hurdle in getting a new visit visa??? any relationship in that unpaid 4000 dollars credit card bill and visa clearance from US CUSTOMS AND BOARDER PROTECTION? I went for visa interview and they have sent my visa case to USCIS for clearance . all I know usually they check for some back ground on criminal activities or terrorism, which I know I m clear of.
please let me know if the US visa officer or US counslate would come to know about this credit card thing?
ask ko lang po pag my utang ka sa credit card pwede mag sheriff or nakakarating po ba na my hearing sa court ito? salamat
ask ko lang po din kung pwed nila makuha ang bahay namin kapalit ng utang? baka po kasi makuha ng bank. hindi ko na po kaya mag bayad sa card almost 5yrs na ako nagbabayad ng minimum ngayon 100k pa din utang ko.salamat
Hi,
If ever I setteld my credit card debt, how can I be sure that my name will not be anymore in the blacklist? Also should I really settle with the collection agency?
Or even if the bank has turned over my loan to the credit collectors, can I still call the bank and settle with them like make tawad.. pwede ba yun?
thanks and hope you enlighten me on this…
Since, unsettled payment of credit card considered as delinquent payer! If ever does certain application in abroad can be affected for this matter?
Hi.
I have 21k debt sa cc of hsbc and now it was reach at 42k.i want to settle my cc debt but the collection agency want me to pay the whole amount but i cant .i ask for any options but they told me dt there will b no any option.whats confusing is they just txt me and no formal call or emails.i’m just afraid bcoz they txt me dat d acc is already for litigation and they will file a case against me. Can i just call hsbc and made arrangement wd them ?thanks.
I am Canadian living in Asia since 2000, I was using and paying my credit cards for several years, but after a while I had financial problems so I was unable to send the money to the banks and my student loan also, I tried to contact the creditors afetr a while of stoping, but I couldn’t, so my question right now is if I go back to Canada, can I have problems at the customs and immigration? How I can get advise to rebuild my credit and how I can negociate with the banks? Can I got to jail?
Thanks for your help,
Charles
after we receive demand letters from the collection agencies, can we still pay at the credit cards owner like hsbc, standard chartered etc?
even though we are receiving already those final demand letter?
because our debt increases more than a hundred percent if the collection agencies are the one who handles our account.
i have no job, only my wife, and she takes all the burdens.
thank you very much
hi fitz,
we have cc that was unsettled, and now its in collecting agency,
1. can we still pay at the bank? so that the interest and penalty is not that high as the collecting agency.
2. although we have’nt receive any summons from the rtc, is it that before you go for preliminary arraignment, you must receive first a summons or subpoena from the rtc?
3. and is it allowable to pay for a length period of time just to finish our debt? coz honestly, right now our salary cannot compensate our necessity.
many thanks for your help, best regards.
ray
Hi there Sir Fitz. Sir I would like to ask for an advise regarding my unpaid credit card. Me and my family have been harassed by many collection agencies because of the matter. Just today I received a text message from Summit Collection that my case has been filed to Camp Crame etc., which is kinda new for me because liked what I’ve said my account has been in different collection agencies. And they told me that they will post my picture on newspaper, etc and file a ESTAFA case against me which I kinda doubted because for them to do that I believed it is related to defraud and breach of contract which I didn’t do. Obviously one of the tactics of collection agency.
What I noticed is that in every collection agency that handled my account they will offer a very big discount from the OUTSTANDING BALANCE of the credit card, however it should be one time payment only. Now I am wondering, can I just go to the bank directly and asked for an easy payment scheme for my unpaid credit card instead of forwarding my account to different agencies and be harassed? Is this possible? I hope you could reply ASAP please. Thanks
hello ask lang po ako.. kasi may psbank money loan ako and naging 300k plus na.. hindi ako makabayad kasi ang laki na.. wala din po ako work ngayon.. question ko lang kasi im getting calls from an atty na magfile na case na daw sila today at 3pm.. so just wondering kung totoo ba to? tapos everytime magtalk kami sa phone, grabeh parang harassment na.. sinabihan ko naman na hindi ako makabayad kasi ang laki na ng utang ko.. please help..
@ryan
I have been through the visa process with USCIS and they did not find my credit card debt. In fact I’ve been in the US for 3 years now and nothing has come up about my credit card and bank debt in Canada.
When I moved they could not find where I moved and I have had no notices for this time period. However my son informed me that they sent a notice to his address recently because I had a phone account that my son uses that had my name on it. I think I may have messed up because I changed my accounts name to my married name in the US. I hope they don’t track me now, they don’t have my SSN however.
I was going to claim bankruptcy but you have to be a resident.
I was told by a bankruptcy agent in Canada to just leave it if I was not going to be back for over 7 years and that the debt cannot be collected if they have not made contact with me. Does anyone know if this is true?
Fritz do you happen to know in this situation if the debt is cleared? Would I be better to start bankruptcy proceedings in Canada by using my son’s address as a residence (since I need a residence to do so?). It would be nice to have it finished and then when I move back to Canada in a few years there won’t be an issue.
I am not happy about leaving debt unpaid, however I have paid my debts for years and years and with the interest have paid the banks several times over for this money and I am getting older and have no money for retirement or to pay my rent etc. Times are very tough! I want to do the right thing and have a clear slate.
hello fitz,
i left Dubai with unpaid cc and loan.the bank in UAE keeps on sending emails and ask to pay my debt.I ask a favor for amicable settlement and luckily they grant me,but the problem is they want me to pay the amount of 500,000 plus in a span of 5 months.I told them that i cannot pay such amount.Now i recieved an email threatening me to file my case to the police.Is it possible that they can put my name blacklisted in the immigration here in the philippines.
Need some advice, and many thanks for your help.
what if a law firm representing aig sent a letter stating that they will ask aig to file a case against me? They will garnish my properties and told that i’ll be sued for violation of ra8484? should i talk to them or to aig? i resigned from my previous job and not able to pay because of financial problem. i want to pay but i can’t pay a large amount. pls help me.
A real and fresh experience…from the jail
Hey guys I’m sure everyone in this page is longing for the real experience about BANK DEBTS here in UAE…then here you go…
I have total 8 credit cards and 3 personal loans from different banks here in UAE (ADCB,FGB,Mashreq,RBS,RakBank,Dubai First & Citibank), my all credit cards has a maximum credit limits of Dhs.6k aside from FGB which I’m having 2 cards Visa & Mastercard with Dhs.10k each credit limits. So for all my credit cards I’m having a credit limits of Dhs.56k. My 3 loans are totals Dhs.45k.
When I started collecting this cards way back year 2005 I’m earning Dhs.9k monthly +++ then due to financial crisis they terminated 60% of staff and all the balance staff like me received salary reduction of almost 60% of the salary, from Dhs.9k down to Dhs.4.5k monthly is my salary since beginning of 2009. Since then I got difficulties in paying my debts monthly I have to divide my salary in total 11 payables…
May 2010 when FGB collection agency (not the bank collectors itself) started to disturb me ang threathen me that if I’ll not pay today (take note they didn’t give me time to arrange money, collectors just simply say today) she will send CID. I told her I don’t have money and my salary reduced so and so… she has given me only 1 week to arrange money but on that time she wanted Dhs.10k as a final settlement of my all dues from FGB (take note my 2 cards with Dhs.10k each limit, they merge it to 1 limit only of Dhs.20k and my purchased debts was converted to EASY LOAN of Dhs.18k in total so I have to pay 1200 monthly for a period of 24 months, but I failed paying almost 4 months that time)…Anyway in short she given me 1 week grace period to pay Dhs.10k one shot and close the card/easy loans. I arrange Dhs.7500 and cdeposit the amount, it was thursday that time and I called here and inform that, that’s all my money I have, the next day Sunday she send CID in the office (I’m not so sure even my colleagues are not sure wether they are really a CID because they just introduced they were CID but without showing any ID etc…) Luckily I was off that time, but unluckily when my Manager came to know that he terminated me
…so I lost my job, I tried to manage here from supports of my friends (food and shelter) but didn’t pay any banks after that May 2010, since then all my loans get accumulated all the interest and penalties exceeded on my credit limits, in short if I want to settle my debts I need to have Dhs.100k to settle all, I got new job after 1 year, and because I really don’t have plan in running away in my debts, I went to the banks personally and ask for the settlement or anyways they can reduced the penalties and interest, any help I approached from the. Some banks are reply good some are not, usually they want me to settle the maximum credit limit so I can close the cards or balance amount of loans.
But…when I visited FGB the person there told me just give me your number and we’ll contact you, following day a collector from another collection firm called me and forcing me to pay Dhs.20k and settle the card, he told me I have police case already, I told him I just get new job I need good settlement plan, I visited their office also in Sharjah near Rolla because I’m sincere that I want to pay. He just told me no way they need only Dhs.20k or else they will file police case (I told to that Manager, you told me I have already police case and now you’re going to file again police case?)…
Anyway I didn’t pay coz I don’t have money…After 3 days the same guy called me and told me come to our office we got new settlement plan of Dhs.500 monthly for you, come and get the agreement letter. So I was happy to know that, so the next day I went in their office and met him, he asked me to wait and I waited for almost 2 hours, after 2 hours CID came and brought me in CID office then in SHARJAH CENTRAL JAIL…Court given me Dhs.1k penalty which I didn’t pay because I was already 10days in jail when the judge given me the verdict….
But the reality is…so many ladies inside the jail having 100k, 150k so and so amount bounced cheque and they’re serving maximum 3months in jail and clear the case…
I have so many things wanted to share because I met so many ladies inside the jail who has different experience and they just serving the punishment inside…
hi,
Can someone please enlighten me about dispute. gaano po katagal bago lumabas yun investigation result. Pa share na din po for those who experience an unauthorized transaction and filing a dispute.
Thanks in advance for your time.
Magbayad na lang kayo ng mga utang nyo! Or live beyond your means. Not max out your credit card(s) to appear you have a high standard of life. Tapos hindi nyo naman pala kayang bayaran.
@PJ ( June 11 )….what happened to your case now?
To Dan,
I understand your point however, there will a come time that one of your family member or maybe yourself will be in “critical” need that you need to sacrifice everything on the line even whole of your credit limit and running through loans for help. Yes debt is a responsibilty and you need to pay it but you dont know what are the circumstances people are experiencing when situations like these arises, and that’s why they cannot pay their debts. I hope you can be more sensitive to these things and have an open mind rather than being too “righteous” and rude.
And P.S i hope you wont get paralyzed or terminated from a job because of recession or company meltdown, or your mother/father/brother/sister gets terminal illness. Peace be with you. Godbless.
Have a heart.
+1 @Blair..
@Dan – It doesn’t necessarily mean that when someone has maxed out his credit card, he’s having a “high standard of life”. I maxed out my cc because my father got hospitalized and unfortunately, that was also the time when my emergency fund got depleted because my mom just had an operation. I never really wanted to be a delinquent payer (i believe nobody does), but after all the hospital bills and maintenance meds for my parents, I had no choice but to skip my cc obligations for several months. Now I’m also receiving a lot of threats from CA.
i failed to pay my credit card and exceeded 100,000. its over the limit off the small claims case. whats the worst that can happen? what can the bank file against me?
I also have the same problem, i have 11 credit cards from different banks, i started using credit cards since 2006 and used it for business, for the first 5 years i continue paying in full that’s why many banks offered me credit cards because i have a good credit records despite of having higher credit limits and also increases my credit limit every six months, for me it is very helpful as additional fund for my business but when i started another business this last March 2011 and used my credit cards…i did not earned monthly what i have to pay for 11 credit cards, so 8 to 9 of my cards are only paid in minimum so it started adding finance charges that up to now i cannot pay because of higher monthly minimum and also finance charges added….don’t know what to do.
As of now i only maintain 7 credit cards 3 are paid in full, 4 are paid only in minimum, 4 of them are already in CA…i don’t have capacity to pay all of my debts and i cannot save for my children because all income are paid in different banks. I cannot think of a plan.
I just want to share just to lessen the burdens.
Thank u guys for posting, its all for a relief.
I have the same problem with regards sa personal loans.natatakot ako kasi baka makulong ako dahil sa (Republic Act No. 8484), dahil nagresign ako sa work ko at di na ako nag chance n inform ang Bank, result is di ko n nabayaran un loan ko for how many years, i went to other country, kung babalik po b ako ng pinas Makukulong or maddemanda parin po ba ko dahil dito?
Thanks for sharing….
Hi. my question is, if there is already a final court order for me to pay, and this was carried out by the sheriff, should i still settle directly with the credit card company or the agency?
hi Fritz, what about in the NBI clearance? will they not release my NBI clearance beacuse i didn’t paid my 60k credit card balance?
Thanks in advance
Hii my question is, i got credit cards frm australia,i failed to pay the interest fee as well as the original amount in 2009,on unexpected things i need to fly to india from australia,iam gng to visit australia,does any thing will effect for my future.bank people will be send any guys on to me…! iam little bit shivering because iam applying visa to australia frm india…! do it cause anything serious that i will not get visa for not paying the credit debits because its more than 2 years i hvn’t been paid $27,000.i didn’t even tell to my wife how she could react on me..! iam more worring about paying lot of money.i cant afford to pay that much untill i get visa to work in australia…! please can u suggest me how 2 get out of this hell..! even my hands are shivering wen iam typing this….! please help me out…! do it will effect my visa for australia….! plz help me out…!
Hi Fitz
First time lang sa tagal ko nang my credit card isang beses pa lang ako na-delay magbayad because for the first time din na-delay for one week ang salary namin due to company’s financial issues. Gusto ko na rin e-close credit card ko kc ang laki na ng interest. This year twice ko lang ginamit ang card ko amounting to 4k only pero mas malaki pa ata interest kesa sa mga napurchase ko. Kung kakausapin ko ba ang bank papayag kaya sila na wala nang interest at items purchased lang ang babayaran ko?
Hi Fritz, i had 3 credit cards before in different companies with a bad record and I was able to settle all of them early this year. The banks issued a clearance to prove that i had really settled my accountabilities. I applied for a personal loan from several banks and unfortunately i always get disapproved, though i attached the clearance with my application. what could be the reason for my disapproval? is my name still black listed even if i settled my accounts? are there banks in the Phil who can accommodate loans from consumers with settled bad credits?
it’s only now that I read this blog, thanks! I,too, have so many cards to settle. I work in a good company, but because I’m paying a lot these days, I could not cover everything esp because I have 2 kids, one 1.5 yrs old and one 4.8 yrs old.
reason why we were not able to pay was because my husband lost his job, jobless for 6 months and so no means to pay. we also had borrowings during that time which we are paying till now.
CAs are always calling and usually pressure me to pay within the day or by the next day, etc. I’ve explained that my husband have lost his work for 6 months but of course they dont care. My point is, he was removed from his post, did not resign, it was something beyond our control. Who would want to intentionally run away from debt? I believe everyone who has someone to pay wants to pay (in full, if at all possible) at the soonest possible time, too.
and I say also to Dan that yeah, we should not judge quickly. for like in our case, we used to be good payers, not until he lost his job.
Is there a good way to settle credit cards already with CAs without having to go through them? Can i go straight to the bank?
I really just want to put an end to this nightmare!
Hi
Recently, I received an SMS from a a bank tell me if I don’t pay the amount they will black list me and send arrest warent against me were as I have to pay small amount if 3000dhs .can you pls help me in this why the bank send this type of SMS some times It worries me a lot mentally and physically can you advice on this waiting for your knd reply
Regards
Khan
hi mr. fritz.. it was a nice blog… i just want 2 ask we can debt at hsbc few months na rin dati it was 27 k until it bcme 41k now.. we like to pay sana to stop the collection agency harassing us.. nka2takot .. we tell the collection agency na wla na sa haus ung husband q kc bhay un ng momy q.. pwde sanang byaran namin ung 27k sa bank mismo ng wla g interes kc ang laki2 e… tska last nyt my ng txt sa husband q n may magvi2sit daw sa haus na legal officer nla..npero d nman cnbi kung sa bank of hsbc.. ntakot lang po aq nwala na ug peace of mind q.. pls help naawa na rin aq sa para sa husband q…pls help.. ty
once lang kc kami na nadelay mag pay ng bill kc nhosptal daughter namin den after dat nag pay na kami ng minimum payment pero kht 4 months na xa d pa rin naba2wasan un bill namin,, tnatanong namin ung hsbc kaso d namna nila msagot un… den after dat we decided not to pay na unti last month ng ha2rass na ung mga collection agency.. dti 2mwag sa law firm dw xa.. then after nun sa brangay daw xa.. den every now and then they keep on calling sa haus harassing us.. kay kaasar… is it a gud option kaya kung magapalit kmi ng landlyn or hindi rin namna mka2tulong.. na totrauma n kc aq e.. pls help…ma tetrace b nila if sabhn nmin n wla n ung husband q dun sa haus.. ty
hi i also failed to pay credit card to HSBC….coz I need to resign coz my mother is very ill & i need to care of her…. so I started no to pay for the minimum amount…then the CA start calling me & harassing me…my 40K debt is 75k na…. i want to pay them but i don’t have the capacity ryt now….maybe in minimial amount but they want me to pay in full…..can i go straight to HSBC and to talk to them & make a arrangement how to pay in minimal amount instead in th CA….nakakatrauma kasi….i don’t have work ryt now coz i need to take care of my mother….tnx…
hi! good day fitz!i need help ‘coz i have two cards with 10K and 15K credit limit both are from RCBC both are max out because my grandmother gt hospitalize due to heart attact and since then i wasnt able to pay the said cards ‘coz i have to buy my grandmother’s medicine for her heart and since then i use my cards for groceries and other food for my family i am the only one whose working i want to pay my debt with them but i can only pay a minimal amount,the coll agency keeps on calling me every single day and me pay the full amount of the cards.what will i do pls help.tnx.
Hi fitz, same as others problem of not paying cc. Nagresign po ako sa datin kong company na idineclare ko sa CC ko pro d ko naman po nainform ung mga CC company na wala napo aq sa company na pinapasukahn ko dati.I received a demand letter from Domingo Molaer law offices, sabi nila i am a delinquent payor of SCB and I am not paying my monthly due umabot na po sa 20k ung due ko SCB then sabi nila magbyad daw aq until nov 18 para mahold ung filling of civil case against me kahit daw ung 50% lang kasi iwaived nila ung 50% kaso po i dont have the capacity to pay may debt sa SCB now because my salary is enough only for my daily expenses.Ipa-file po kaya tlaga nila sa court ung kaso ko. hindi naman po ako tumatakas sa obligation pro d ko lang po talaga kayang magbayad sa ngayon po. Makukulong po ba talaga ako? please help me.
hi fritz,
gud day!
Merun po akong pinirmahan na promissory note last january 2010 for the housing loan in our company at nag-issue po ako ng pdc. the loan was 5 years to pay and 3,770 ang monthly payment ko. Lately of october 2011 i availed my early retirement which i can claim my early retirement fee. tama po bang ibawas lahat sa loan ang retirement fee ko at mag-pirma na naman ako ng panibagong promissory note? gusto ko kasi ipatuloy lang ang previous promissory note ang monthly payment ko na 3,770 and still 5 years to pay which i still have 3 more years to pay my the housing loan.
sana po matulungan niyo po ako.
hello sir fritz,
thanks for this site, i have also 2 credit cards but then isa lang ang nakayanan kong i maintain. the other one naging deliquent payee nakao… cause mas may kailangan akong bayaran… ngayon kakatawag lang sakin ng molaer domingo collection agent para bayaran ko ang utang ko sa knila. i never intention na hindi sila bayaran… nagkaton lang na hindi ko na sila kayang imaintain.. i got sick and need to on leave and yon na ang nangyari.
15k lang credit limit ko na umabot ng 27k pero ang kinasama ng loob ko kse ang credit ko lang sa knila na nagamit sa cc ko… ay nasa 10k lang.. may mga finance charges etc pa kse sila binigay.. kaya ayun ang nangyari hindi ko na sya kayang bayaran….
i just want to share this experience to others.
sabi naman ng friend ko na nag wowork sa bank kahit bayaran mo na sa third party ang exact amount na pinag usapan nyo ng CA… blacklisted ka na din. kase ang binabayaran mo na is mismong CA at hindi ang mismong bangko. kaya nonsense na magbayad ka pa daw sa bangko kase binenta na ng bank mo ang credit card account mo sa third party..
gud pm san po ba pede magreport ng fraud? yung isang kakilala ko may utang 14 yrs ago 2 accounts sa citibank po and di na xa nacontact. pinapasa pasa kc ung phone sa office at sabi resigned na sya eh ndi nmn po.. baka million na ung utang nya
give ko nlng po ung numbers, nagchange number na ata xa pero ptry 09228207187, at sa office emerald vinyl 3616101 – 04.. actually po sasabihin resigned na xa but ndi po.. katunayan po ang sss cllection na named after the company, add ng office 24 oliveros dr balintawak quezon city
and name nya dolor, or dolores salcedo (maiden) casabuena.. 44 na po ata xa..
Hi,
Your blog is very informative! Same as many of us here, I also have problems paying my CC with HSBC and now it was turned over to Domingo and Molaer Law Office. They kept calling me on my celphone, almost everyday.. They are giving me until the end of this month, 11/30/2011 to pay my bill amounting to 19K. They said that the other option I have is to pay for it within the next 6months but I will have to pay the total of 47K (including interest.) I don’t have enough resources at this time, I am sick and my husband lost his job, I have a 5y/o daughter too.. I was telling the CA agent that I might be able to pay for it by next year but they dont want give some considerations. I know that I somehow neglected my obligation but that’s because of some reasons that of course they will not understand. I am afraid at this point, even if I know that I won’t be put into jail because of that, but I’m afraid that they might go to our house or to my office and harass me. Please give me some advise and more power!
Good day! I don’t know pero feeling ko di pala ako nag iisa sa problema ko sa credit card. Since september last 2010 nawalan po kami ng trabaho. Meron po akong 10 credit card. Di naman po ganon kalalaki ang nagamit ko kaya lang po nag earn na ng patong patong na interest. Madami po nadating sakin ng mga demand letter at trying na maki usap sa di pagbayad sa mga outstnading bill ko.I know my fault ako sa di pag ayos ng financial obligation pero kakahiya man di ko talaga makayang bayaran pa kasi po hirap din kumuha ng trabaho sa age ko. Pero previously po na may work ako makikita naman po na wala akong deliquent na bayad.
Ang tanong ko po:
Talaga po bang di ako makukulong dun kasi po nagkaroon na ako ng nervous breakdown sa mga utang na di ako alam pano ko babayaran pa?
Meron po akong na issue cheque worth 6k+ sa Citibank financial loan pero since nawalan ako ng trabaho nag close na po yung account. So ibig po sabihin pag nadeposit yung cheque babalik lang sa kanila gawa ng close account na. Pero i try po na magbayad ako ng 2000 per month. pero since di po talaga afford na kaya po di na din ako nakabayad sa kanila.
Please please help me what to do. Salamat po.
hi sir,
i just want to ask about my situation…
i am applying for an RCBC bankyard mastercard for the first time.. i just remember all of a sudden that i still have credit in AVON for years now..
does it affects my credit card application?
thanks..
hoping for your response. thanks..
hi fitz, thanks for posting this. i just wanted to ask. regarding the estafa issue. i have a loan with BDO and that payment arrangement was supposed to be an auto debit to my payroll account but when i left my old company, naging regular savings account nalang. then i stopped sending money to the account and failed to settle my loan. would that be grounds of estafa? today, my neighbors said 5 policemen came to our house and may dala daw warrant of arrest. no one was there since my family and i were on a vacation. i had no idea for the reason of the warrant of arrest but do you think that that BDO loan could be the culprit. I have yet to call the number na iniwan sa kapitbahay namin. need to call a certain colonel daw. hoping for your response. thanks!
hi good day!
I just want to say something about some of those collecting agents… some of them are so bastos at walang modo kung maniningil… It so discouraging to pay when you are dealing with this kind of people. Because they are so mean parang ayoko na tuloy magbayad prang revenge sa pambabastos nila..
for everyone, try to visit http://www.failuretopaycreditcard.com- you also get lots of insight there on how to handle this predicament.
I opted to go for the amnesty program of the banks and am enrolled in payment schemes.One bank is on 6 years to pay at 1000 per month. it’s better than for my card balance to balloon.
for HSBC, one of my cards with P17thou balance, I paid at 5thou plus only. full settlement arrangement.
There is hope, just don’t give up. keep praying for help to come. I know, it’s out of the topic, but in case you have a few thousands to invest in a business with 4thou initial investment, you are invited. 099999-77499 is my number. dont post replies here re the business opportunity. text me so we respect this post. thanks!
God bless!
hi po,
I am quiet in a dilemma now. Fervent prayers talaga na darating ang solution. There is naman actually, kaya lang medjo it’s a matter of time. Thank you for your insights. Helpful indeed. Medjo pansin ko nga na collecting agency na ang nagpapadala ng demand letters about threats sa NBI, warrant of arrest etc. Of course I am very afraid. I will pay my debt, as soon as I get the money I am waiting for. Kaya lang I am afraid to communicate with them. I had been most afraid and reluctant also to look up sa internet about the consequences of my non payment, afraid of what I might read. I know it would not be right to totally ignore our debts but thank you for the infos. I will pay my debt. Hopefully I would be able to do so.
Hi i just like to ask i have a credit card loan from citibank which amounted to 70k, i was a good payee until my business went sour now its over 8yrs, is’s been 2yrs now since the collection agency or a law firm had stop inquiring about my whereabouts, just got my NBI clearance and i’m clear from any records,i’m willing to pay them back but i’m scared of the overdue charges and can i apply for a new card from a different bank…please help Thanks
thank you so much for this article..i have been harrassed also by domingo and molaer law office..this is very enlightening..
Hi, I use to live in saudi and then moved to Syria, I have an amount didnt pay it to Visa and Master Card, about 16’000US$ , whenever i arrived to Syria, i opened new account at one of Syrian banks, but the day i got my ATM card i found its an ATM and Master Card same time. this way they can find where am i? what if i cancel the card, they still can find me or not?
Hi,
i have this problem with AIG. Worse kasi acquired na sila by Chartis. Here’s my thing, i have already fully settled my balance with them 2004 pa. They’ve even sent a letter confirming that i have fully settled my account (kaso nawala ko yung letter). Now, when i applied for a savings acct sa bpi, the bank just wouldnt let me kasi may unsettled balance pa raw ako with AIG. Tumawag na ako sa kanila nung 2009 to resend the letter. Kaso they did not. Until they were acquired nga by Chartis so i no longer know who to talk to. I need help, real bad.
Thanks!
Hi Fitz, i just would like to be enlightened if there will be tendencies na ma hold kami sa immigration if hindi kami makabalik sa canada for not paying our credit card debts which was way 2 to 3 yrs ago. Baka hindi na kami makabalik ng canada. Actually gusto na naming mag bakasyon sa pinas but we are bothered so much of our unsettled cc debts na hindi pa nabayaran. Right now we are hesitant to be on vacation baka ma hold kami sa immigration dahil sa problemamng ito at hindi na kami makabalik sa canada. Is there such a thing? Thank you very much it would be a great help if you could have time to answer this message of mine, Godbless you more!
Hi Fritz I have credit na hindi ko n mabayaran kahit may work pa ako, kasi ang dami ko iniintindi and to think maliit lang din sahod ko then itong mga collection officers kung tumatawag kung ano-ano sinasabi pupunta daw sa office magdala ng police huhulihin daw ako….natatakot ako cympree hindi ko namn sinadyang d magbayad nag-invest kasi ako, nag undoy…. nawala lahat, d na ako makabayad ngayon… lately may tumawag, sabi for court filing na daw yung sa CC ko sa isang bank… can they sue me in court… please need your advice.
Thanks
pano po kapag hnd ako nakabayad ng credit cards at ung edad ko binago nung agent n nag apply sakin ng cc para maapprove sinunod ko po ung edad n nilagay nya sa twing tatawag ako dati sa bank pero ngayon hnd n ako nakakabayad financial problem kc .., ano po worst case scenario pwede mangyari ? knwing n mali p ung edad n binigay ko ? salamat