Dear Attorney,
I have three unpaid credit cards that have accumulated significant interest since the pandemic. Recently, someone claiming to be a police officer contacted me, saying they are on their way to my house with a warrant to arrest me for violating Republic Act (RA) 8484. I am very concerned about whether this claim is legitimate and what my legal rights are in this situation. Can I be arrested for unpaid credit card debt under RA 8484?
Sincerely,
A Concerned Debtor
Insights
It is important to address this concern by understanding RA 8484, also known as the "Access Devices Regulation Act of 1998." This law primarily governs the illegal use of access devices such as credit cards, debit cards, and other electronic payment methods. However, simply failing to pay credit card debts does not automatically equate to a violation of this law.
Can You Be Arrested for Unpaid Credit Card Debt?
In the Philippines, non-payment of credit card debt is generally considered a civil matter, not a criminal offense. Debt alone, without any element of fraud or illegal activity, does not result in arrest. The Philippine Constitution explicitly prohibits imprisonment due to non-payment of a debt, as stated in Article III, Section 20: "No person shall be imprisoned for debt."
The key provision in RA 8484 deals with fraudulent activities. If the credit card holder is involved in actions such as using a credit card with intent to defraud the issuer, providing false information to obtain credit, or using a stolen credit card, then these acts could lead to criminal charges. In such cases, penalties under RA 8484 may apply. However, if the issue is simply about unpaid debt due to financial difficulty, you cannot be arrested.
Threats of Arrest for Unpaid Debts
Receiving a call from someone claiming to be law enforcement and threatening immediate arrest is a red flag. This type of scare tactic is often used by unscrupulous debt collectors to intimidate debtors. It is important to verify the identity of the person making these threats. A legitimate police officer or court representative will follow due process, which typically involves formal notifications and court procedures, not sudden phone calls threatening arrest.
If you are genuinely concerned about the validity of the claims, you can contact your local police station or seek advice from a legal professional. It's also advisable to keep records of these communications and avoid engaging with anyone who does not provide legitimate identification.
Your Legal Recourse
If you believe the threats are baseless or that debt collectors are harassing you, you may report such actions to the National Privacy Commission (NPC) or the Bangko Sentral ng Pilipinas (BSP). Both agencies regulate the behavior of debt collection agencies and ensure that creditors do not resort to unlawful practices.
To manage your unpaid credit card debt, you may explore options such as debt restructuring or negotiating with the credit card company for more manageable payment terms. Many banks are willing to work with debtors to come up with repayment plans, especially when financial hardships arise due to uncontrollable events like the pandemic.
By understanding your rights and the applicable legal framework, you can better handle this situation without succumbing to undue pressure from unethical practices. Always seek professional legal advice when in doubt.