Published: October 4, 2018 | Updated: June 4, 2020 | Posted by: Venus Zoleta | Credit Card
Dead-worried about the credit card debt you haven’t paid off for a long time? Stop stressing out and start dealing with it. You can apply for an amnesty program for credit card debt.
A credit card amnesty program in the Philippines allows cardholders with unpaid balances to settle their debt at a lower interest rate and a longer repayment term. This helps you get back on track with your finances and improve your credit standing.
Banks like Citibank have their own an amnesty program for credit card debt. There’s also a credit card amnesty program in the Philippines that consolidates a cardholder’s debt from different banks.
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Wondering about what happens if you don’t pay your credit cards? These things are likely to occur after you fail to settle your credit card balance:
Filipinos with unsettled credit card debt won’t get jailed because unpaid debts are regarded only as a civil and not a criminal offense. The Philippine Constitution (Article III Section 20) states that “no person shall be imprisoned for debt.”
So if you keep getting calls with jail threats from collection agents, don’t believe them because they’re prohibited from harassing customers.
In June 2016, the Bangko Sentral ng Pilipinas, member-banks of the Credit Card Association of the Philippines (CCAP), and BDO Unibank, Inc. launched a debt restructuring program called the Interbank Debt Relief Program (IDRP) to help delinquent credit cardholders settle their overdue accounts.
The IDRP is a repayment plan that consolidates and restructures a person’s credit card debts. This credit card amnesty program in the Philippines offers more affordable monthly amortizations with lower interest rates, longer repayment terms, and a more convenient way to pay off credit card bills. It won’t ruin a cardholder’s credit history, according to the CCAP.
Here are the banks that allow credit card debt restructuring under the IDRP:
Not all credit cardholders in the Philippines can qualify for credit card debt restructuring. The IDRP is open only to those who meet its strict requirements.
Call your issuing bank to apply for credit card debt restructuring under the IDRP. If you have multiple credit cards from different banks, the credit card provider with the highest combined outstanding balance will be the lead bank in processing your credit card amnesty application. A representative from the lead bank will call you to explain the arrangement and process your application.
You need to submit these documents when applying for credit card amnesty:
When you apply for a credit card amnesty under the IDRP, you must declare all your outstanding credit card balances. You can’t apply only for a specific credit card account.
If your application for credit card amnesty is denied, you can apply again after six months. Alternatively, you may contact your credit card issuer to inquire about its bank-specific credit card amnesty program for delinquent accounts.
When you get an approval for credit card amnesty, you can pay your monthly amortization directly to the issuing bank, other banks, or accredited payment centers.
Also, expect these things to happen:
If you miss paying for two consecutive months, your credit card amnesty will be canceled and considered in default. The IDRP has a Default One, Default All policy, which means defaulting with one bank will cancel the IDRP arrangement with the other banks. You also can’t apply again for IDRP.
Although an unpaid credit card debt won’t land you in jail, do your best to settle it the soonest time possible for your peace of mind. Avail of the IDRP or the credit card amnesty program of different banks in the Philippines to ease up your debt repayment.
Read More: How to Eliminate the Common Types of Debt