Financial Consumer Protection Department
Central Supervisory Support Subsector,
Supervision and Examination Sector
Bangko Sentral ng Pilipinas,
Telephone Numbers: Direct Line: (632) 708-7087; Facsimile: (632) 708-7088
E-mail Address: firstname.lastname@example.org
Dear Bangko Sentral ng Pilipinas:
I would like to bring to your attention the criminal activity in connection with harassment and lies committed by a certain MARK CRUZ & JOHN DOES of SP MADRID LAW FIRM with a physical address located at Unit 1909 Cityland Herrera Tower, Herrera Street, Valero, Makati, 1226 Metro Manila, Philippines and Telephone No. 02 865-7800 local 7246 with email address: email@example.com.
FACTS OF THE COMPLAINT:
1. For more than twenty times last March 27, 2019 (Wednesday), a certain Mark Cruz of SP MADRID LAW Firm called and harassed me and my wife telling that I have to settle my obligation with the bank that they represented, although by law, it is no longer actionable. They never stopped calling my residential line, office number and my mobile phones until I sent and e-mail to them stating the following:
“Please stop the harassment. Under Article 1144 of the New Civil Code of the Philippines, you are only authorized to do action within 10 years (Statute of Limitation). Further, please refer also to the the BSP Circular No.454 Series of 2004 for collection practices and my rights as an individual. I know my rights.”
2. On April 1, 2019, an agent from the same firm called my employer telling that a certain case (non-existing case) was lodged against me, which I do not know of neither I, was aware. Certainly, it was a lie, and a ploy to harass me.
Because of the above reasons, Mark Cruz and the SP MADRID LAW Firm clearly violated the following provision of Republic Act 10870 that lapsed into law on July 17, 2017 in accordance with Article VI Section 27 (1) of the Constitution of the Philippines:
Section (19) Appropriate Manner of Collection. A credit card issuer may resort to all reasonable and legally permissible means to collect amounts due them under the credit card agreement; if in the exercise of its rights and performance of duties, they must observe good faith, reasonable conduct and proper decorum and refrain from engaging in unscrupulous acts. A credit card issuer or collection agent shall not harass, abuse or oppress any person or engage in any unfair practices, as may be defined by BSP rules and regulations,
Penal Provisions for the violation of this law has been provided in the following Sections:
Sec. 26. Administrative Sanctions on Credit Card Issuers.
Sec. 27. Violation of this Act and Other Related Rules, Regulations, Orders or Instructions. A person who willfully violates any provision of this Act or any related rules, regulations, order or instructions, issued by the Monetary Board shall be punished by imprisonment of not less than two (2) years nor more than ten (10) years, or by a fine of not less than fifty thousand pesos (P50, 000.00) but not more than two hundred thousand pesos (P200, 000.00), or both, at the discretion of the court.
In relation to RA 10870, An Act Regulating The Philippine Credit Card Industry, a corresponding Implementing Rules and Regulations (IRR) was released by the Bangko Sentral ng Pilipinas Circular No. 1003, Series of 2018, stating that any violation of
"Sec X320.17 Appropriate manner of collection and use of third party collection agents... Provided that in the exercise of their rights and performance of duties, they must observe good faith, reasonable conduct and proper decorum, and refrain from engaging in unscrupulous acts.
…The Monetary Board may now and then consider any other acts/omissions as unfair collection practices:
a. the use or threat of violence or other criminal means to harm a person, or his/her reputation or property;
b. the use of obscenities, insults, or profane language which amount to a criminal act or offense under applicable laws;
c. disclosure of the names of credit cardholders who allegedly refuse to pay debts, except as allowed under Subsection
d. threat to take any action that cannot legally be taken;
e. communicating or threatening to communicate to any person or entity, credit information which is known to be false, including
failure to communicate that a debt is being disputed;
Based on Sec X320.17, Mark Cruz and several John Does of SP Madrid Law Firm violated Sec. X320.17 (a), (b), (d) and (e) since they know that under Article 1144 of the New Civil Code of the Philippines, any legal remedy that are given them was rendered unactionable by any competent court because of the Statues of Limitation, i.e. 10 years and that the obligations become moral rather than legal.
Wherefore, because of the foregoing, I pray that you take action against the agency that clearly violated the law of the land specifically violating the Republic Act 10870 Section (19) with specific administrative and penal provisions as stated in Sections (26) and (27) and the IRR of RA 10870 through BSP Circular No. 1003, Series of 2018 Sec X320.17.
Further, may I request that you will give warning and instruction that they must stop harassing people and do unlawful acts.