MANILA, Philippines — A new proposed measure is being pushed to prohibit the issuance of pre-approved credit cards to individuals who did not apply for them, reinforcing existing regulations set by the Bangko Sentral ng Pilipinas (BSP).

Senate President Pro Tempore Jinggoy Ejercito Estrada has filed Senate Bill No. 2952, or the proposed Pre-Approved Credit Card Prohibition Act, to institutionalize the ban. 

While BSP Circulars Nos. 702 and 845 already prohibit the practice, Estrada said there is a need for a law to strengthen enforcement, citing reports that unsolicited credit cards continue to be issued.

“May mali sa gawaing ito lalo na kung walang consent o pahintulot ang credit card user na mabigyan ng pre-approved credit card. Para sa walang disiplina sa paggastos, debt trap ito. Dapat igalang ng mga bangko at credit card companies ang karapatan ng mga indibidwal na magpasya sa kanilang mga financial transactions,” Estrada said.

The proposed law aims to impose stricter penalties on violators. 

Under the bill, credit card providers must prove that clients have read and consented to the terms and conditions before a credit card is issued. 

If consent cannot be proven, the client cannot be held accountable for the card’s terms, the proposed measure noted.

Estrada’s measure also seeks to ban other related practices, such as sending unsolicited supplementary cards, offering credit cards as rewards without prior consent, and informing depositors that they have been automatically issued a credit card due to their good standing.

First-time offenders will face censure and a fine of P300,000. A second offense will result in a P500,000 fine and suspension from BSP’s credit facilities. 

A third offense will lead to the revocation of the issuer’s license to operate and an P800,000 fine, it said.