MANILA, Philippines - Banks are now no longer allowed to send pre-approved credit cards to their clients, under new regulations issued by the Bangko Sentral ng Pilipinas.
The BSP has recently expanded its rules prohibiting banks and other BSP-supervised financial entities from issuing pre-approved credit cards to clients.
Under Circular no. 485, the BSP detailed the acts which are "tantamount" to issuing pre-approved credit cards by the banks, quasi-banks, and non-banking financial institutions, and their subsidiaries or affiliate companies.
These acts include sending credit cards to customers, who had not applied or requested cards; and mailing unsolicited supplementary cards.
Under the rules, "unsolicited calls by credit card issuers requesting updated information from selected clients in order to be entitled to receive credit card as a reward for his/her continued patronage of the bank’s other financial products" are also not allowed.
The BSP also does not allow banks to conduct unsolicited calls to clients, saying that they can have a credit card for having “good standing” as a depositor.
Banks are also prohibited from "sending of mail with credit card enclosed which will be deemed accepted upon the receipt of such card by a receiver, whether authorized or not."
The BSP also maintained the ban against sending a pre-approved credit card that is deemed accepted unless the customer requests for its termination, as well as sending credit cards as "free offers" to customers.
The BSP issued Circular 702 on December 15, 2010, which prohibits banks, quasi-banks and their subsidiary or affiliate credit card companies from issuing pre-approved cards.
The BSP requires banks and non-bank financial institutions with credit card operations to properly review applications for credit cards. Banks have to ensure the customers have a good credit standing and are financially capable to fulfill their obligations.