On Unpaid Credit Card Debt

May nakukulong ba dahil sa di nabarayang credit card? You may have chanced upon this hot topic at Pinoy Exchange already, and I assume that this is also the reason why you are reading this article. Did you stop paying your credit card? Have you been getting emails, letters, and calls lately? Did someone already threaten you with an arrest warrant, court battle, and had people with “police escorts” knocking on your door? Did you receive a “subpoena”? Those are all from third-party collectors, they are agents from a credit collecting agency where your “debt” was sold.

Based from my experience, your bank will try to reach out to you for payment for at least a month. If you fail to pay or if they can no longer contact you (because you are no longer answering their calls or emails), they will pass or “sell” your account information to a third-party collector and let them take over.

I have received the same “last and final demand” emails for years.

I have received calls and emails from at least three “law firms” in the span of six years. It looks like banks actually forward your information to different collectors (unless, these collectors are moving to different addresses and change their company names every two years or so). Whoever gets to convince you to pay, gets the commission. That’s the only time that the threats will stop.

Should you pay these third-party collectors? I have a friend who did because he got so worried when they were able to trace his address and actually went to their house. He agreed to pay, and they promised him a clearance that never arrived. He eventually got a clearance when he learned that I was able to get mine. Now, you may also go ahead and pay those collectors but calling your bank directly is a better option. CLICK HERE for information on how to get a credit card clearance. 

I don’t know of anyone who got arrested or who was denied of an NBI clearance due to an unpaid credit card.



What to do next? You may choose to ignore the calls and emails while earning enough money to pay your debt. Or if you have the money, I recommend that you call your bank and transact with them directly. I don’t know about other banks, but HSBC was very accommodating when I contacted them.

Good luck!

Cebu Pacific GetGo Debit Card by UnionBank Review

When my home loan from UnionBank was approved, I was required to open a savings account with them. My monthly amortization payment is to be automatically debited from the account; I thought this is more convenient instead of issuing checks, post dated or not.



At that time, they have just launched a new product called the Cebu Pacific GetGo Debit Card by UnionBank which the bank representative suggested. Instead of a savings account that requires an initial deposit and a maintaining balance of Php50,000, this option has no maintaining balance. This product is also tied-up with Cebu Pacific, so every point you earn from using the card automatically goes to your Cebu Pacific GetGo account.

Basically, you will get two cards – the Cebu Pacific GetGo card, and the UnionBank GetGo debit card itself. I am not really monitoring my GetGo points, but after over six months, I only earned 93 points. I’m guessing, auto-debit transactions are not counted.

Personally, I am only using the debit card for its initially intended purpose, but I just recently added it as a payment option to my Uber and Grab bookings.

Fast facts about the UnionBank GetGo Debit Card:

  • No maintaining balance, no initial deposit.
  • Unlike the BPI debit card which is only valid for two years, this one is valid for five years. There is an annual fee of Php500, I have yet to find out if this can be waived as my card is just 8 month olds (I will update this post by the end of 2017).
  • Your points are converted to Cebu Pacific GetGo points (Php88=1point).

On how to apply or to know more about this product, visit https://getgo.unionbankph.com.

BPI Prepaid Credit Card Review




UPDATE: The My ePrepaid Card is now being replaced with the Amore Visa Prepaid Card. CLICK HERE for more information.

I first started using a BPI ePrepaid Credit Card in 2011. I have renewed it three times since then and only stopped using it when I got a secured credit card from Security Bank.

A prepaid credit card is like a debit card that can also function as a credit card (confusing, eh?). Physically, the card will have either a Visa or MasterCard logo on it. You can use it for online payments, and can be swiped at a cashier without the need to enter a pin. It doesn’t have a pre-determined credit limit. From the word prepaid, the card is “reloadable” and the amount you can spend will basically depend on your remaining account balance.

Some fast facts about the BPI ePrepaid Credit Card:

  • No maintaining balance.
  • Maximum load amount is Php100,000.
  • The card is valid for two years, with a renewal fee of Php500.
  • Can be used wherever MasterCard is accepted.
  • Any remaining balance must be consumed as the card cannot be used to withdraw money from an ATM.
  • Application and renewal can be done at any branch.




Prepaid credit cards are very useful for online shopping. Personally, I used my BPI prepaid card to book hotels, bus, and plane tickets. And since I have an existing BPI savings account, reloading was also convenient as it can be done through online and mobile banking. From time to time, you will also receive promotional emails for some perks or discounts at participating establishments, such as the one below:

My only issue? The Php500 renewal fee cannot be waived, and while you can accomplish a renewal request online, you still need to bring the paperworks to a BPI branch. Big turn-off to some of us who dread long lines.

To know more about this product, visit https://www.bpiexpressonline.com/p/1/105/my-e-prepaid.

Getting a Secured Credit Card from Security Bank



Four months after settling my six-year-old credit card balance with HSBC, I applied for a credit card at Security Bank via a friend’s referral. I went ahead for two reasons:

  1. To check if getting a clearance from HSBC could clear my bad credit card history.
  2. Just to try my luck.

I was not approved and I am not surprised. I understand that it has only been four months since I got the clearance from HSBC so the chance of getting cleared from the “system” at that point is very slim. I proceeded with my next option which is to get a secured credit card.

I have been hearing about this option before and BPI seems to be the most popular provider. However, I never saw any information about this on their website so I was hesitant to apply. I do have a prepaid card with them which was very useful for online transactions. I used it for about 6 years.

In February this year, I submitted my application for a secured credit card to Security Bank. They call this product “Fast Track Program”. In summary, you will need to open a savings account with a minimum deposit amount of Php15,000. Your credit limit will be 80% of the total holdout amount. So if your holdout amount is Php15,000, your credit limit will be Php12,000.
You can deposit more money to your account, but you cannot use or withdraw the holdout amount for at least one year. Should you need to withdraw the holdout amount, your credit card will be cancelled and any outstanding balance will of course be deducted. This is basically a test of how “qualified” you are to get a regular credit card. If you cannot manage your finances with a secured credit card, you probably couldn’t do so with a regular credit card. To make it even more secure, I voluntarily opt to not receive an ATM card for my savings account.

It feels like a second chance in owning a credit card. I use it for the basics – groceries, Uber/Grab, and lately, on a three-month installment plan. I follow the most important rule: if I can’t buy or pay it in cash, I won’t use the card. And above all, I make sure that I pay the total balance on time.To apply for a secured credit card from Security Bank, go to https://www.securitybank.com/.

The approval is 100% provided that you meet all their requirements. The processing time is supposedly 10 business days, but I got my card in the mail after three weeks.

Hit on NBI Clearance Due to an Unpaid Credit Card?

I stopped paying my credit card in 2010 (but had it cleared last year, CLICK HERE to find out how I did that). In 2012, I went to get an NBI clearance and despite having a very unique name, I got a “hit”. I was a bit anxious but because I needed it, I went back and claimed it anyway. No, I was not arrested. I got my clearance in less than three minutes.

This was a hot topic in my old blog which I let go a couple of years ago so I decided to make another post about it. Some readers would look me up on Facebook and ask for an advice. I am NOT a legal expert but my suggestion then was always to “go claim it”, and I am giving the same advice today.

Unless you are one of my followers, you must have found this post via Google. So, did you also get a “hit” and afraid that it might be because of an unpaid credit card? There may be other reasons why, often because you have a namesake who’s got a record.

If you are really bothered, I recommend that you settle your credit card debt with your bank directly. I did so with HSBC, and it was not as difficult as I thought. They honored my request to settle six years after my card got defaulted.


How to Get a Bank Clearance for your Credit Card




If you decided to stop paying your credit card, and have been receiving calls regularly, chances are your record has been passed on to a credit card debt collector. From what I know, banks would turn over (or sell) your record to a third-party collector after a month. If you happen to be reading this and your latest due date has not passed one month yet, save yourself some trouble by contacting your bank immediately and ask for a remedial or amnesty. You could be very honest about your financial status and be ready to negotiate nicely. This option is so much better than receiving endless calls and letters with threats later on.

In my case, I avoided these debt collectors for six years. I was only renting so changing an address was easy. I also got a new mobile number although I did not deactivate the old one which every now and then receives calls from unknown numbers. Of course, I never answered. In September 2016, upon the suggestion of BPI where I applied for a home loan, I contacted HSBC. This was a last resort as BPI nor any other bank, will not consider my loan application unless I submit a clearance. I was so hesitant that it actually took my agents months to convince me to do it.



I went through my old emails and found my credit card number. I then called their hotline and upon giving them my information, I was transferred to their Recovery Department. Basically, I stated my case and expressed my willingness to settle. It was not as difficult as I thought, no lawyers, no subpoenas, no court orders! Don’t believe the credit card debt collectors.

  • The Credit Risk Management representative whom I spoke with was very nice. During the call I learned that my total balance including interests that have accumulated in the past six years is now at Php120,000+.
  • I said I don’t have that much money and asked if we could deduct all the interest.
  • She came up with Php35,000. I couldn’t remember my exact total balance from six years ago, it must have been around Php25,000 (without interest) so I was okay with the offer. I thought it was fair and reasonable for a 6-year old debt.
  • I agreed to meet up with the representative at the lobby of HSBC in Taguig, near St. Luke’s. We went straight to the deposit machine and she had me fill-out the deposit slip myself. We deposited the money and I kept the receipt from the machine. She then asked me to sign the clearance and handed me my copy. I checked all the details and confirmed everything to be correct. I went on and took several pictures of the clearance to make sure I have soft copies.

What a relief!It was quite an experience, literally liberating. I will no longer be afraid to answer calls from unknown numbers. I can now change my Jobstreet and LinkedIn profile settings to “public”. Most of all, I can now continue with my home loan application with BPI!

If you have the same problem, and don’t want to settle with rude credit card debt collectors, call your bank. Be nice.