Dear Attorney,
I am a resident who has been struggling to settle my credit card debts due to financial hardship caused by the pandemic. I have three outstanding credit card balances that I haven’t been able to pay off since then, and the amounts have significantly increased because of interest charges. Recently, someone claiming to be a police officer called me, stating that I violated Republic Act No. 8484 (Access Devices Regulation Act of 1998) and that they are on their way to my house with a warrant to arrest me. I am now terrified and unsure of what to do. Is it possible for me to be arrested for failing to pay my credit card debts under RA 8484? What are my legal rights in this situation? I am hoping for your guidance.
Sincerely,
A Concerned Debtor
Insights
In this situation, it is important to understand your rights as a debtor, as well as the legal boundaries that creditors or their representatives must respect when attempting to collect a debt.
Firstly, credit card debt, in itself, is considered a civil obligation rather than a criminal offense. The failure to pay credit card bills, no matter how significant the amount, does not automatically lead to criminal charges. While Republic Act No. 8484, the Access Devices Regulation Act of 1998, governs the use of credit cards and other access devices, its provisions focus on fraud, unauthorized access, and misuse of access devices, rather than simply failing to pay one’s obligations due to financial hardship.
For instance, RA 8484 applies in situations where someone has used fraudulent means to obtain credit, such as using fake identities, submitting false documents, or continuing to use a credit card with no intention of paying. If you have not committed any fraudulent acts, the law would not apply to your case, and you cannot be criminally charged under this Act simply for non-payment.
Regarding the threat of arrest, it is important to know that law enforcement cannot arrest you for unpaid debts unless there is a valid criminal case involving fraud or other crimes specified under RA 8484. If the caller indeed claimed to be a police officer threatening arrest over your unpaid credit card bills, it is very likely that this is an unlawful act of intimidation, often referred to as harassment by collection agencies or third-party collectors. Such practices are not permitted under Philippine law, particularly under the guidelines set by the Bangko Sentral ng Pilipinas (BSP) on the ethical collection practices.
If this happens again, you may want to document the incident and consider filing a complaint against the collection agency with the BSP or the Department of Trade and Industry (DTI) for harassment or unlawful collection practices.
As for your debt, while creditors have the right to collect what is due, they must do so in a lawful manner. They can file a civil case against you to demand payment, which could lead to a court judgment requiring you to settle your obligations. However, even in this instance, you cannot be imprisoned for failure to pay the debt. The Constitution of the Philippines expressly prohibits imprisonment due to non-payment of debts.
In summary, unless you have committed fraud, you cannot be arrested or charged under RA 8484 solely for failing to pay credit card debt. You may want to engage a lawyer to help you negotiate with your creditors and explore options like restructuring your debt, or even filing for debt relief programs. Meanwhile, be cautious of any threats or harassment and consider reporting such incidents to the proper authorities.