Why you shouldn't throw away pre-approved credit cards
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is urging those who receive pre-approved credit cards to keep them and report the bank or credit card company involved.
BSP deputy governor Dr. Johnny Ravalo said the BSP is trying to keep track of banks who are still sending pre-approved credit cards despite a ban implemented in 2010.
“If you do get those cards in the mail, please call the Financial Consumer Affairs Group of the Bangko Sentral ng Pilipinas. We would like to not only monitor all of these things, but the reason why the regulation was put in play was because we believe there is a policy issue involved where the financial consumer is ultimately bearing the burden of something that could have been avoided from the started,” Ravalo said on ANC’s “On The Money.”
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.
“Sometime back, the BSP issued guidelines that categorically prohibit the deployment of pre-approved cards. We want to be very clear about this: what we mean by pre-approved cards is if I did not apply for a card, and it shows up in the mail, that is considered a pre-approved card,” said Ravalo.
The circular added that before issuing credit cards, “banks/quasi banks and/or their subsidiary or affiliate credit card companies must exercise proper diligence by ascertaining that applicants possess good credit standing and are financially capable of fulfilling their credit commitments.”
Even if you are an existing bank client, any credit card sent by the bank without an application is still in violation of BSP regulations.
The BSP’s Financial Consumer Affairs Group can be contacted through (632)-7087087 or via email at [email protected]