Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. Philippine laws can be complex, and individual circumstances vary. If you require legal assistance or advice regarding a specific situation, consult a qualified attorney licensed to practice in the Philippines.

1. Overview of Prescription Periods in Philippine Law

Under Philippine law, the term “prescription of actions” (or simply prescription) refers to the lapse of a time period after which a creditor can no longer lawfully sue to collect a debt. The primary statutes governing prescription in the Philippines are found in the Civil Code of the Philippines, particularly Articles 1139 to 1155.

Key Provisions of the Civil Code

Article 1144 – Actions upon a written contract must be brought within 10 years.
Article 1145 – Actions upon an oral contract must be brought within 6 years.
Article 1155 – The prescriptive period is interrupted by:
- Filing of a complaint in court,
- A written extrajudicial demand by the creditors, or
- Any written acknowledgment of the debt by the debtor.

Because credit card agreements are generally formal, written contracts between the bank (or issuing financial institution) and the cardholder, the most commonly applied prescriptive period is 10 years from the time the cause of action accrues (i.e., usually when the debtor defaults or fails to make payment as required).

2. Credit Card Debts as Written Obligations

A. Nature of the Credit Card Agreement

Written Contract: When you apply for a credit card, you sign (or electronically agree to) terms and conditions that govern the use of the card, interest rates, fees, and repayment schedules. Since these terms and conditions are in writing, they fall under the category of written agreements.
Continuous/Running Balance: Although the balance changes each billing cycle, the overarching agreement is still considered one written contract.

Because of this written character, most legal practitioners and courts in the Philippines recognize that the action to collect a credit card debt is subject to the 10-year prescriptive period under Article 1144 of the Civil Code.

B. When Does Prescription Start?

Date of Default: The prescriptive period typically begins when the debtor fails to pay on the due date, and there is a clear indication of default (e.g., missed payment plus a demand or statement that the amount is immediately due).
Demand Requirement: Some lenders may argue that prescription only starts running when a formal demand for payment is made. Often, credit card issuers send periodic billing statements or demand letters. These communications might be considered demands that could start the clock on the prescriptive period.

3. Interruption (Tolling) of Prescription

A. Written Extrajudicial Demand

If the creditor sends a written extrajudicial demand (e.g., a demand letter) before the prescriptive period expires, the running of prescription is interrupted. This means:

The prescriptive clock stops on the date of the demand.
After interruption, the prescriptive period commences to run anew.

B. Acknowledgment or Promise to Pay

Any written acknowledgment from the debtor that they owe the debt, or a promise to pay the obligation, can interrupt prescription. Examples include:

An email or letter to the bank stating willingness to settle.
A partial payment accompanied by a note acknowledging the total debt.

C. Filing of a Court Case

If the bank or collection agency files a lawsuit in court before the prescription period lapses, the running of prescription is effectively halted. The action then proceeds under court supervision until final judgment.

4. After Obtaining Judgment: Separate Prescription for Execution

If the creditor obtains a final and executory judgment in its favor (for instance, a court orders the debtor to pay a specified amount), a separate prescriptive period for executing that judgment begins:

Under Philippine law, the prevailing party generally has 10 years from the date the judgment becomes final to execute or enforce the decision (e.g., through garnishment or other court-approved collection methods).

5. Practical Considerations

A. Demand Letters and Collection Calls

Creditors or their authorized collection agents typically send repeated demand letters or make phone calls. Any valid written demand can keep the debt “alive,” preventing the prescription period from running out, provided those demands meet legal standards.

B. Negotiating or Settling the Debt

Many banks allow restructuring of the unpaid balance, a process in which the debtor and creditor agree to new repayment terms. While this can help a debtor manage payments, it often resets the prescriptive period because it constitutes a written acknowledgment of the debt.

C. Credit Bureau Reporting

Apart from prescription issues, defaulting on credit card debts can affect a debtor’s credit history. In the Philippines, the Credit Information Corporation (CIC) and partner credit bureaus collect data on defaults, which can make future loans or credit applications more difficult, even if the debt eventually prescribes in court.

D. Harassment and Unfair Collection Practices

The Bangko Sentral ng Pilipinas (BSP) and various laws (e.g., the Consumer Act) regulate unfair debt collection practices. If debtors feel harassed or threatened, they may report collectors’ abusive tactics. However, this does not extinguish the debt itself; it only addresses how collection efforts may be conducted.

6. Frequently Asked Questions

Is the prescriptive period always 10 years for credit card debts?
- In practice, yes, because credit card agreements are considered written contracts. The 6-year period for oral contracts generally does not apply. However, each case can be nuanced. Consult an attorney if your situation is unclear.
Can a creditor still collect after 10 years?
- Once the 10-year period lapses without valid interruption, the creditor’s claim may be barred by prescription, meaning the courts will no longer entertain a collection suit. However, if there has been a written demand or acknowledgment within that period, the clock resets.
Does making even a tiny payment restart prescription?
- A mere payment might not, by itself, reset the period unless it is accompanied by a written acknowledgment or promise to pay. However, if you sign a new agreement or explicitly recognize the debt in writing, that typically restarts the clock.
What if the bank files a lawsuit after the prescriptive period?
- You can raise prescription as an affirmative defense. The court will evaluate whether the debt is indeed prescribed. If the court agrees the action is time-barred, the case will be dismissed.
How can I confirm if the debt has prescribed?
- You can review all records of payment, demand letters, and any written communications exchanged. If it appears more than 10 years have passed since the last interruption, consult a lawyer to assess whether the bank’s claim is prescribed.

7. Key Takeaways

Credit card debts are treated as written obligations, subject to a 10-year prescriptive period under Article 1144 of the Civil Code.
Prescription starts generally from the time of default (often coupled with a formal demand for payment).
Written acknowledgments, demands, or court filings interrupt prescription, causing the 10-year period to start anew.
Even after 10 years, if the debt was acknowledged or demanded in writing before prescription ran out, the claim might still be enforceable.
Consult a lawyer for a definitive determination, as nuanced factors (e.g., repeated demands, partial payments, settlement negotiations) can significantly alter how prescription applies.

Conclusion: In the Philippines, an action to collect a credit card debt usually falls under the 10-year prescriptive period for written contracts. To understand whether an old credit card debt can still be collected—or if it is time-barred—you must examine when the debt went into default, whether there were any valid demands or acknowledgments in writing, and whether legal action was timely pursued. Given the complexity of interruptions and other procedural nuances, seeking professional legal advice is highly recommended if a significant amount or dispute is involved.