Dear Attorney,

I became a victim of a credit card scam. The scammer impersonated a bank employee, tricking me into disclosing information, which led to an unauthorized transaction on my credit card. I immediately reported the fraud to the bank, canceled my card, and requested an investigation. After 90 days, the bank responded, stating the transaction was valid and billed me with interest for two months. The customer service has been unresponsive to my emails, and I am unsure what legal action to take if I refuse to pay the amount charged.

Can I be held liable for this fraudulent transaction? What are my rights, and what steps should I take?

Insights

Credit Card Fraud and Consumer Protection in the Philippines

Credit card fraud, a form of identity theft, is covered under several Philippine laws that aim to protect consumers from unauthorized transactions and fraudulent activities. Victims of such scams have the right to dispute transactions and may seek recourse under the following legal frameworks.

The Consumer Act of the Philippines (Republic Act No. 7394)

Under the Consumer Act, banks and financial institutions have a duty to protect their customers against fraudulent activities. If a transaction is disputed by a consumer as fraudulent, the bank is obligated to investigate and ensure that proper protocols are followed in addressing the complaint. Failure to respond adequately to a consumer's complaint may constitute a violation of consumer rights under this law.

The Access Devices Regulation Act (Republic Act No. 8484)

This law specifically covers fraudulent transactions involving access devices, including credit cards. A bank's negligence in securing consumer data or improper handling of fraud claims may give rise to legal actions under this act. Consumers are protected against unauthorized use of their credit card, and they should not be held liable for fraudulent transactions if they have promptly reported the scam.

Cybercrime Prevention Act of 2012 (Republic Act No. 10175)

This law penalizes crimes committed using technology, including credit card fraud through phishing and other deceptive methods. A scammer’s impersonation of a bank employee to acquire sensitive information may fall under cybercrime, and victims may file complaints with the National Bureau of Investigation (NBI) or the Cybercrime Division of the Philippine National Police (PNP).

Steps to Take

File a Formal Dispute
If the bank has not reversed the transaction, file a formal dispute in writing. Cite the Access Devices Regulation Act and your right to be protected from unauthorized transactions. Demand a written explanation of the investigation and the basis for the conclusion that the transaction was valid.
Report to the Bangko Sentral ng Pilipinas (BSP)
If the bank continues to ignore or reject your complaint, escalate the issue to the BSP, which oversees all financial institutions in the Philippines. They can mediate between you and the bank to resolve the issue.
Consider Legal Action
If the amount is substantial, and the bank refuses to cooperate, consult a lawyer to explore legal remedies under the Consumer Act and Access Devices Regulation Act. You may also file a complaint with the Department of Trade and Industry (DTI) or pursue a civil case for damages.

In conclusion, victims of credit card fraud in the Philippines are not automatically liable for unauthorized transactions. The legal protections available emphasize the responsibility of financial institutions to safeguard consumers and act on fraud complaints diligently.