Complaint Over Unprocessed Refund With a Visa Consultancy Firm in the Philippines
All You Need to Know in a Philippine Legal Context

1. Introduction

In the Philippines, hiring a visa consultancy firm can simplify the process of obtaining a visa for overseas travel, work, or migration. However, disputes sometimes arise when clients request refunds—often due to changes in personal circumstances, canceled visa applications, or dissatisfaction with services rendered—and such refunds are either delayed or not processed at all. This article explores the legal and practical aspects of lodging a complaint against a visa consultancy firm over an unprocessed refund in the Philippine context.

2. Nature of Visa Consultancy Services

Service Contract
- A visa consultancy arrangement is typically governed by a service contract between the client and the consultancy firm.
- This contract details the scope of services, fees, timelines, and conditions for refunds (if any).
- In the Philippines, contracts are primarily covered under the Civil Code of the Philippines, which outlines obligations, rights, and remedies of parties.
Common Services Offered
- Assessment of visa eligibility and requirements.
- Assistance in completing and submitting visa application forms.
- Guidance on supporting documentation and interview preparation.
- Follow-up with embassies or consulates when applicable.
Nature of Fees
- Consultancy fees (professional fees for their services).
- Third-party fees (embassy fees, medical exams, courier services, etc.)—often non-refundable.
- Administrative fees or miscellaneous charges.

Because many of these third-party charges are outside the control of the consultancy, the refund policies for such fees can be different from those for consultancy services themselves. Always read your contract carefully to determine which fees are refundable.

3. Common Reasons for Refund Disputes

Visa Denial
- A client may request a refund when the visa application is denied. Some contracts offer partial refunds if the application is denied for reasons outside the client’s control, while others stipulate no refund for negative decisions.
Change of Plans
- Clients may no longer wish to proceed due to personal or professional reasons (e.g., job offer withdrawal, family emergencies, health issues).
- The refund policy in these cases varies widely, and many contracts are explicit that cancellation after service commencement may only entitle the client to a partial refund, or none at all.
Non-performance or Delay
- Clients may allege the firm did not perform promised services, or performed them inadequately, causing delays or added costs.
- A client may seek a refund if the consultancy’s shortcomings directly caused a negative outcome or if the firm failed to deliver on agreed timelines.
Fraud or Misrepresentation
- In some cases, the visa consultancy might have misrepresented its expertise, made false promises about guaranteed approvals, or engaged in deceptive practices.

4. Legal and Regulatory Framework

Civil Code of the Philippines
- Obligations and Contracts provisions (Articles 1156–1304): govern the creation, interpretation, and enforcement of contracts, including service contracts.
- A breached contract (e.g., refusal to issue a refund that is contractually owed) can be grounds for filing a civil complaint to enforce payment or to seek damages.
Consumer Act of the Philippines (Republic Act No. 7394)
- Though primarily focused on goods and traditional consumer transactions, it also extends to certain services.
- The Department of Trade and Industry (DTI) can sometimes mediate complaints if the consultancy’s practices are deemed unfair or deceptive.
Other Applicable Regulations
- Small Claims Rules: If the amount in dispute is within the threshold for small claims (currently up to Php 400,000 in the Metropolitan Trial Courts, subject to updates), the client can file a small claims case for money owed without needing a lawyer.
- Estafa or Fraud under the Revised Penal Code: In extreme cases of outright deceit, a criminal complaint may be possible. However, the threshold for proving fraud is high, requiring evidence of deceitful acts or misrepresentations from the outset.
Professional Regulation
- There is no specific Philippine government entity that licenses “visa consultants” akin to how lawyers or travel agents might be regulated. However, some firms may have business permits from local government units and accreditation or memberships in recognized professional organizations.
- Always check whether the consultancy has a legitimate business registration with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) as appropriate.

5. Steps to Address an Unprocessed Refund

Review the Contract
- Check the refund clauses, termination conditions, timelines, and any dispute resolution clauses.
- Identify specific provisions on fees: which are refundable, which are not, and under what circumstances.
Send a Formal Demand Letter
- Before escalating to legal action, draft a formal demand letter or request for a refund.
- State the relevant facts: the amount paid, reason for requesting a refund, references to contract clauses, and a clear demand for payment within a reasonable timeframe (e.g., 15 days).
- Keep proof of delivery (registered mail, courier tracking, or an acknowledged email).
Negotiate or Mediate
- If the firm responds and shows willingness to address the dispute, you may settle out of court.
- The Department of Trade and Industry (DTI) offers mediation services for consumer-related complaints. While a visa consultancy is a service provider, the DTI may still facilitate if there’s a clear consumer protection angle (e.g., deceptive or unfair practices).
File a Complaint with Appropriate Agencies
- DTI: If the consultancy is engaging in unfair or deceptive acts (e.g., misrepresenting success rates), you may file a consumer complaint.
- Local Government Unit (LGU): If the firm is operating without the correct permits, you may alert the Business Permit and Licensing Office in the firm’s city or municipality.
Institute Legal Action
- Small Claims Court: For sums within the small claims threshold (currently up to Php 400,000 for Metropolitan Trial Courts, though subject to revision), you can file a small claims case. This is a quicker, less formal route that does not require a lawyer, though legal guidance is still advisable.
- Regular Court Action: If the amount or legal complexity exceeds the small claims limits, you may need to file a civil case for breach of contract and damages in the appropriate court.
- Criminal Complaint (Estafa): If there is evidence of fraud or deceit from the start (e.g., the firm never intended to provide services, used fake documents, or guaranteed approvals they could not lawfully promise), you could consider filing a criminal complaint. But be mindful of the stringent requirements for proving criminal intent.

6. Potential Outcomes and Remedies

Full or Partial Refund
- The court or the mediator may order the visa consultancy firm to refund the entire amount paid or just a portion, depending on the contract, the stage of service rendered, and the circumstances of termination.
Damages
- In a civil case, a successful plaintiff could be awarded actual damages (for direct financial loss) and possibly moral and exemplary damages if bad faith or fraud is proven.
- Attorneys’ fees and costs of suit may be recovered in some cases as well.
Contract Rescission
- The contract may be voided under certain conditions (e.g., fundamental breach, fraud).
- Rescission places the parties back in the position they were in before the contract, potentially requiring the consultancy to return the fees and the client to return any materials or benefits received.

7. Practical Tips for Clients

Before Engaging a Visa Consultancy Firm
- Research the firm’s track record, read online reviews, and check if it is properly registered with the SEC or DTI.
- Ask detailed questions about fees, refund policies, and the scope of services before signing any contract.
- Request a sample contract to read carefully and confirm if fees for third-party services (embassy, medical exams, etc.) are separate or included.
During the Engagement
- Keep copies of all documents: contracts, receipts, emails, chat exchanges, and official communication from embassies or consulates.
- Communicate in writing (email, formal letters) to maintain a clear record of instructions, updates, and any promises made by the firm.
If You Need a Refund
- Act promptly when you realize you need to cancel or if the firm has not delivered as promised. Delays can complicate or weaken your claim.
- Use polite but firm language in written communications, citing specific contract clauses if applicable.
- If you suspect fraud or repeated delays, involve a lawyer or a legal aid organization for guidance on escalating the matter.
Avoiding Fraudulent Firms
- Be wary of firms that guarantee visas, as no legitimate consultancy can assure approval (embassies make final decisions).
- Verify if any “industry certifications” or “affiliations” cited by the firm are legitimate.

8. Conclusion

Disputes over unprocessed refunds with visa consultancy firms often boil down to contract interpretation, adherence to consumer protection laws, and the firm’s transparency in handling fees. In the Philippines, clients have multiple avenues to seek redress—from direct negotiation and DTI mediation to filing a small claims or regular civil action in court.

To protect yourself, always read the contract thoroughly, document every transaction, and do preliminary research before engaging a consultancy firm. If a dispute does arise, start with a formal demand, attempt settlement or mediation, and if necessary, pursue legal action to assert your contractual and statutory rights. While each case will have unique facts, understanding the legal framework and your options can significantly improve your chances of securing a fair remedy.

Disclaimer: This article is for general informational purposes and does not constitute legal advice. Specific cases may vary, and you should consult a qualified Philippine attorney for advice tailored to your particular circumstances.