Credit card fraud may be meted 10-year jail time and P10,000 fine

Dear PAO,

Regarding unpaid credit card, what would be the possible effect of defrauding?

Liza

Dear Liza,

There are different kinds of defrauding that is committed under Philippine law, like estafa, among
others. However, since you inquired on defrauding in relation to unpaid credit cards, then we must first
look at Republic Act (R.A.) No. 8484 or Access Devices Regulation Act of 1998.

Section 9 of the Access Devices Regulation Act enumerates acts constituting access device fraud. With
regard to unpaid credit card bills, Section 9(j) states that “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” is
considered as access device fraud.

In relation to this, Section 14 states:

“Section 14. Presumption and prima facie evidence of intent to defraud. – The mere possession, control
or custody of:

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.”

According to the law, any person found guilty of committing access device fraud shall be punished with a
fine of ten thousand pesos (P10,000) or twice the value obtained by the offense whichever is greater
and imprisonment for not less than six and not more than ten years in the case of an offense under
Section 9(b) to (e) and (g) to (p), which includes (j), which does not occur after a conviction for another
offense under Section 9 or if it occurs after a conviction for another offense under Section 9 or an
attempt to commit the same, a fine of ten thousand pesos (P10,000) or twice the value obtained by the
offense, or imprisonment of not less than twelve years but not more than twenty years, or both.
Under the said law, one may still be prosecuted under the Revised Penal Code even after being
convicted under R.A. No. 8484. Therefore, one may still be prosecuted and convicted for estafa or other
kinds of fraud if it is discovered that these crimes were also committed aside from credit card fraud.