Arrest Due to Unsettled Credit Card Debt Philippines

What To Do If Threatened with Arrest Due to Unsettled Credit Card Debt?

Q: I received a letter from a legal department that threatens arrest due to unpaid credit card debt. What should I do?

A: It is important to note that in the Philippines, no one can be imprisoned solely on the ground of debt, including credit card debts, as this would violate the non-imprisonment for debt principle enshrined in the Philippine Constitution.

However, credit card companies can file a civil case against you to compel you to pay your outstanding debt. They may also file a criminal case against you if there is fraud involved, which is different from simple non-payment.

Upon receiving such a letter, it is advised to do the following:

1. Verify the legitimacy of the letter.

2. Review your outstanding debt and payment history.

3. Communicate with your credit card company to discuss possible payment arrangements.

4. If necessary, consult with a lawyer to assist you in negotiating with the credit card company and to represent you if a case is filed in court.

Remember to always keep records of your communications and agreements with the credit card company.