Credit card firms are predators

Sometime ago, I wrote about the predatory practices of banks and credit card establishments. Some people have told me horror stories about how these companies put on the big squeeze on customers who fail to pay on time and especially on those who have exceeded their credit limit and are considered in default. Would you believe these companies compound interests amounting to 42 percent a year?

Worse, these companies’ collecting agents harass customers on their overdue payments. They threaten to sue these customers and send them insulting demand letters.

I can attest to these predatory practices myself since whenever I fail to pay on time—either because I am abroad or because the statements are sent to me late (intentionally, I suspect)—I get calls from banks and recorded calls for payments.

Outstanding balances for all credit card transactions have reportedly reached a staggering P135 billion, of which P15 billion are in default. My gulay, if this trend continues, the banking community is on the verge of collapse—and all because of the propensity of banks and credit card establishments of issuing plastic money almost indiscriminately.

There was a time when shopping malls were populated by credit card peddlers, forcing people to get one. Even young people without any means of livelihood carried credit cards.

As I have asked in my earlier columns, what has happened to the Anti-Usury law limiting interest to only 12 percent? It was suspended in 1982 by the late dictator for reasons unknown.

Thus, in the wake of the credit cards scandal threatening the banking community, Congress