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contains the full text ofRepublic Act
No. 8484.
REPUBLIC
ACT NO. 8484 AN
ACT
REGULATING THE
ISSUANCE AND USE OF ACCESS DEVICES, PROHIBITING FRAUDULENT ACTS
COMMITTED
RELATIVE THERETO, PROVIDING PENALTIES AND FOR OTHER PURPOSES.
Section 1. Short title.
— This Act shall be known as the "Access Devices Regulation Act of
1998."
Sec. 2. Declaration
of policy. — The State recognizes the recent advances in
technology
and the widespread use of access devices in commercial transactions.
Toward
this end, the State shall protect the rights and define the liabilities
of parties in such commercial transactions by regulating the issuance
and
use of access devices.
Sec. 3. Definition
of terms. — For purposes of this Act, the terms:
(a) Access Device
— means any card, plate, code, account number, electronic serial
number,
personal identification number, or other telecommunications service,
equipment,
or instrumental identifier, or other means of account access that can
be
used to obtain money, good, services, or any other thing of value or to
initiate a transfer of funds (other than a transfer originated solely
by
paper instrument);
(b) Counterfeit
Access
Device — means any access device that is counterfeit, fictitious,
altered,
or forged, or an identifiable component of an access device or
counterfeit
access device;
(c)
Unauthorized Access
Device — means any access device that is stolen, lost, expired,
revoked,
canceled, suspended, or obtained with intent to defraud;
(d) Access
Device
Fraudulently
Applied for — means any access device that was applied for or
issued
on account of the use of falsified document, false information,
fictitious
identities and addresses, or any form of false pretense or
misrepresentation;
(e) Consumer
—
means
a natural person;
(f) Credit
Card —
means any card, plate, coupon book, or other credit device existing for
the purpose of obtaining money, goods, property, labor or services or
any
thing of value on credit;
(g) Device
Making or
Altering Equipment — means any equipment, mechanism or impression
designed
or primarily used for making or altering or reencoding an access device
or a counterfeit access device;
(h) Finance
Charges
— represent the amount to be paid by the debtor incident to the
extension
of credit such as interest or discounts, collection fees, credit
investigation
fees, and other service charges;
(i) Open-end-credit
plan
— means a consumer credit extended on an account pursuant to a plan
under which:cralaw:red
1) the
creditor may
permit
the person to make purchase or obtain loans, from time to time,
directly
from the creditor or indirectly by use of credit card, or other service;
2) the person has the
privilege
of paying the balance; or
3) a finance charge
may
be computed by the creditor from time to time on an unpaid balance.
(j) Penalty Charges —
means such amount, in addition to interest, imposed on the credit card
holder for non-payment of an account within a prescribed period;
(k) Produce
—
includes
design, alter, authenticate, duplicate or assemble; and
(l) Trafficking
—
means transferring, or otherwise disposing of, to another, or obtaining
control of, with intent to transfer or dispose of.
Sec. 4.
Credit Card
Application and Solicitation. — Any application to open a credit
card
account for any person under an open-end credit plan or a solicitation
to open such an account, either by mail, telephone or other means,
shall
disclose in writing or orally, as the case may be, the following
information:
(a) Annual Percentage Rate
1) Each
annual
percentage
rate of interest on the amount of credit obtained by the credit card
holder
under such credit plan. Where an extension of credit is subject to a
variable
rate, the fact that the rate is variable, and the annual percentage
rate
in effect at the time of the mailing.
2) Where more than
one
rate
applies, the range of balances to which each rate applies.
(b) Annual and other Fees
1) Any
annual fee, other
periodic fee, or membership fee imposed for the issuance or
availability
of a credit card, including any account maintenance fee or any other
charge
imposed based on activity or inactivity for the account during the
billing
cycle.
2) Any minimum
finance
charge
imposed for each period during which any extension of credit which is
subject
to a finance charge is outstanding.
3) Any transaction
charge
imposed in connection with use of the card to purchase goods or
services.
4) Any fee, penalty
or
surcharge
imposed for the delay in payment of an account.
(c) Balance Calculation
Method
— the name or a detailed explanation of the balance calculation method
used in determining the balance upon which the finance charge is
computed.
(d) Cash Advance Fee
— any fee imposed for an extension of credit in the form of cash.
(e) Over-the-Limit-Fee
— any fee imposed in connection with an extension of credit in excess
of
the amount of credit authorized to be extended with respect to such
amount:
Provided, however, That in case the application or solicitation
to open a credit card account for any person under an open-end consumer
credit plan be made through catalogs, magazines, or other publications,
the following additional information shall be disclosed:cralaw:red
1) A
statement, in a
conspicuous
and prominent location on the application or solicitation, that:
i) the
information is
accurate
as of the date the application or solicitation was printed;
ii) the
information
contained
in the application or solicitation is subject to change after such date;
iii) the
applicant
should
contact the creditor for information on any change in the information
contained
in the application or solicitation since it was printed;
(2) The
date the
application
or solicitation was printed; and
(3) In a
conspicuous and
prominent location on the application or solicitation, a toll free
telephone
number or mailing address which the applicant may contact to obtain any
change in the information provided in the application or solicitation
since
it was printed.
Sec. 5. Computations.
— In addition to the foregoing, a credit card issuer must, to the
extent
practicable, provide a detailed explanation and a clear illustration of
the manner by which all charges and fees are computed.
Sec. 6. Exceptions.
— The disclosures required under Sec. 4 of this Act may be omitted
in
any telephone solicitation or application if the credit card issuer:cralaw:red
(a) does not
impose any
fee in connection with paragraph (b)(1), Sec. 4 of this Act;
(b) does not impose
any
fee in connection with telephone solicitation unless the consumer
signifies
acceptance by using the card;
(c) discloses clearly
the
information described in Sec. 4 of this Act in writing within thirty
(30) days after the consumer requests the card, but in no event later
than
the date of delivery of the card; and
(d) discloses clearly
that
the consumer is not obligated to accept the card or account and the
consumer
will not be obligated to pay any fees or charges disclosed unless the
consumer
elects to accept the card or account by using the card.
Sec. 7. Disclosure Prior
to Renewal. — Except in telephone solicitations a card issuer that
imposes any fee described in Sec. 4 shall transmit to a consumer's
credit
card account a clear and conspicuous disclosure of:cralaw:red
(a) the date
by which,
the
month by which, or the billing period at the close of which, the
account
will expire if not renewed;
(b) the information
described
in Sec. 4 which shall be transmitted to a consumer at least thirty
(30)
days prior to the scheduled renewal date of the consumer's credit card
account;
(c) the information
described
in Sec. 4 (a) (1) which shall be transmitted to a consumer's credit
card account; and
(d) the method by
which
the consumer may terminate continued credit availability under the
account: Provided, That the disclosures required by this Sec.
must
be
made prior to posting a fee described in Sec. 4 (b) (1) to the
account,
or with the periodic billing statement first disclosing that the fee
has
been posted to the account subject to the condition that the consumer
is
given thirty (30) day period to avoid payment of the fee or to have the
fee recredited to the account in any case where the consumer does not
wish
to continue the availability of the credit.
Sec. 8. Failure to Disclose.
— Credit card companies which shall fail to disclose the information
required
under Sec.s 4, 5 and 7 of this Act, after due notice and hearing,
shall
be subject to suspension or cancellation of their authority to issue
credit
cards by the Bangko Sentral ng Pilipinas, Securities and Exchange
Commission
and such other government agencies.
Sec. 9. Prohibited
Acts. — The following acts shall constitute access device fraud and
are hereby declared to be unlawful:cralaw:red
(a)
producing, using,
trafficking
in one or more counterfeit access devices;
(b) trafficking in
one
or
more unauthorized access devices or access devices fraudulently applied
for;
(c) using, with
intent
to
defraud, an unauthorized access device;
(d) using an access
device
fraudulently applied for;
(e) possessing one or
more
counterfeit access devices or access devices fraudulently applied for;
(f) producing,
trafficking
in, having control or custody of, or possessing device-making or
altering
equipment without being in the business or employment, which lawfully
deals
with the manufacture, issuance, or distribution of such equipment;
(g) inducing,
enticing,
permitting or in any manner allowing another, for consideration or
otherwise
to produce, use, traffic in counterfeit access devices, unauthorized
access
devices or access devices fraudulently applied for;
(h) multiple
imprinting
on more than one transaction record, sales slip or similar document,
thereby
making it appear that the device holder has entered into a transaction
other than those which said device holder had lawfully contracted for,
or submitting, without being an affiliated merchant, an order to
collect
from the issuer of the access device, such extra sales slip through an
affiliated merchant who connives therewith, or, under false pretenses
of
being an affiliated merchant, present for collection such sales slips,
and similar documents;
(i) disclosing any
information
imprinted on the access device, such as, but not limited to, the
account
number or name or address of the device holder, without the latter's
authority
or permission;
(j) obtaining money
or
anything
of value through the use of an access device, with intent to defraud or
with intent to gain and fleeing thereafter;
(k) having in one's
possession,
without authority from the owner of the access device or the access
device
company, an access device, or any material, such as slips, carbon
paper,
or any other medium, on which the access device is written, printed,
embossed,
or otherwise indicated;
(l) writing or
causing
to
be written on sales slips, approval numbers from the issuer of the
access
device of the fact of approval, where in fact no such approval was
given,
or where, if given, what is written is deliberately different from the
approval actually given;
(m) making any
alteration,
without the access device holder's authority, of any amount or other
information
written on the sales slip;
(n) effecting
transaction,
with one or more access devices issued to another person or persons, to
receive payment or any other thing of value;
(o) without the
authorization
of the issuer of the access device, soliciting a person for the purpose
of:
1)
offering an access
device;
or
2) selling
information
regarding
or an application to obtain an access device; or
(p) without
the
authorization
of the credit card system member or its agent, causing or arranging for
another person to present to the member or its agent, for payment, one
or more evidence or records of transactions made by credit card.
Sec. 10. Penalties.
— Any person committing any of the acts constituting access device
fraud
enumerated in the immediately preceding Sec. shall be punished with:cralaw:red
(a) a fine
of Ten
thousand
pesos (P10,000.00) or twice the value obtained by the offense,
whichever
is greater and imprisonment for not less than six (6) years and not
more
than ten (10) years, in the case of an offense under Sec. 9 (b)-(e),
and (g)-(p) which does not occur after a conviction for another offense
under Sec. 9;
(b) a fine of Ten
thousand
pesos (P10,000.00) or twice the value obtained by the offense, and
imprisonment
for not less than ten (10) years and for not more than twelve (12)
years,
in the case of an offense under Sec. 9 (a), and (f) of the foregoing
Sec., which does not occur after a conviction for another offense
under Sec. 9; and
(c) a fine of Ten
thousand
pesos (P10,000.00) or twice the value obtained by the offense, or
imprisonment
for not less than twelve (12) years and not more than twenty (20)
years,
or both, in the case of any offense under Sec. 9, which occurs after
a conviction for another offense under said subSec., or an attempt
to
commit the same.
Sec. 11. Conspiracy to
commit access device fraud. — If two (2) or more persons conspire
to
commit any of the offenses listed in Sec. 9 and one or more of such
persons does any act to effect the object of the conspiracy, each of
the
parties to such conspiracy shall be punished as in the case of the
doing
of the act, the accomplishment of which is the object of such
conspiracy.
Sec. 12. Frustrated
and attempted access device fraud. — Any person who performs all
the
acts of execution which would produce any of the unlawful acts
enumerated
in Sec. 9 of this Act, but which nevertheless does not produce it by
reason of causes independent of the will of said person, shall be
punished
with two-thirds (2/3) of the fine and imprisonment provided for the
consummated
offenses listed in said Sec.. Any person who commences the
commission
of any of the unlawful acts enumerated in Sec. 9 of this Act
directly
by overt acts and does not perform all the acts of execution which
would
produce the said acts by reason of some cause or accident other than
said
person's own spontaneous desistance, shall be punished with one-half
(1/2)
of the fine and imprisonment provided for the consummated offenses
listed
in the said Sec..
Sec. 13. Accessory
to access device fraud. — Any person who, with intent to gain for
himself
or for another, buy, receives, possesses, keeps, acquires, conceals,
sells,
or disposes of, shall buy and sell, or in any manner deal in any
article,
item, object or anything of value which he knows or should be known to
him, to have been acquired through the use of counterfeit access device
or an unauthorized access device or an access device known to him to
have
been fraudulently applied for, shall be considered as an accessory to
an
access device fraud and shall be punished with one-half (1/2) of the
fine
and imprisonment provided for the applicable consummated offenses
listed
in Sec. 9 of this Act. Said person shall be prosecuted under this
Act
or under the Anti-Fencing Law of 1979 (Presidential Decree No. 1612)
whichever
imposes the longer prison term as penalty for the consummated offense.
Sec. 14. Presumption
and prima facie evidence of intent to defraud. — The mere
possession,
control or custody of:cralaw:red
(a) an
access device,
without
permission of the owner or without any lawful authority;
(b) a counterfeit
access
device;
(c) access device
fraudulently
applied for;
(d) any device-making
or
altering equipment by any person whose business or employment does not
lawfully deal with the manufacture, issuance, or distribution of access
device;
(e) an access device
or
medium on which an access device is written, not in the ordinary course
of the possessor's trade or business; or
(f) a genuine access
device,
not in the name of the possessor, or not in the ordinary course of the
possessor's trade or business, shall be prima facie evidence
that
such device or equipment is intended to be used to defraud.
A cardholder who
abandons
or surreptitiously leaves the place of employment, business or
residence
stated in his application or credit card, without informing the credit
card company of the place where he could actually be found, if at the
time
of such abandonment or surreptitious leaving, the outstanding and
unpaid
balance is past due for at least ninety (90) days and is more than Ten
thousand pesos (P10,000.00), shall be prima facie presumed to have used
his credit card with intent to defraud.
Sec. 15. Loss of access
devices. — In case of loss of an access device, the holder thereof
must notify the issuer of the access device of the details and
circumstances
of such loss upon knowledge of the loss. Full compliance with such
procedure
would absolve the access device holder of any financial liability from
fraudulent use of the access device from the time the loss or theft is
reported to the issuer.
Sec. 16. Reporting
requirements. — All companies engaged in the business of issuing
access
devices, including banks, financing companies and other financial
institutions
issuing access devices, shall furnish annually, on or before the 31st
of
March of the succeeding year, a report to the Credit Card Association
of
the Philippines regarding access device frauds committed against the
holders
of such entities in the preceding calendar year, for consolidation and
submission to the National Bureau of Investigation.
Notwithstanding this
requirement,
banks, financing companies and other financial institutions, including
their subsidiaries and affiliates, issuing access devices shall
continue
to be regulated and supervised by the Bangko Sentral ng Pilipinas while
other companies issuing access devices shall continue to be regulated
and
supervised by the Securities and Exchange Commission.
Sec. 17. Liability
under the Revised Penal Code and other laws. — Prosecution under
this
Act shall be without prejudice to any liability for violation of any
provision
of the Revised Penal Code or any other law.
Sec. 18. Separability
clause. — If any separable provision of this Act be declared
unconstitutional,
the remaining provisions shall continue to be in force.
Sec. 19. Repealing
clause. — Any law, presidential decree or issuance, executive
order,
letter of instruction, administrative order, rule or regulation
contrary
to, or inconsistent with, the provisions of this Act is hereby
repealed,
modified or amended accordingly.
Sec. 20. Effectivity
clause. — This Act shall take effect fifteen (15) days after its
publication
in at least two (2) newspapers of general circulation.
Approved:
February 11, 1998.
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