General Concepts

credit Loan, mortgage, deed of trust, advance or discount ;any

conditional sales contract;contract to sell, sale of property  ors
services , either for  present or future delivery, making  of such 
sale or contract, any rental -ourchae  contract; any  contract or
arrangement for the hire, bailment, or leasing of property; any
option ,demand lien, pledge or other  claim against , or for the 
delivery of, property or money, any purchase, or other
acquisition  of , or any credit upon the security of  claim arising 
out of any  of the foregoing, and any transaction or series  of
transactions having similar purpose of effect. 

Belief or trust  by a person  in another’s ability  to comply with

an obligation

Latin word “credere” trust or believe

Other concepts of credit

In obligations Option of the person  to demand a patrimonial  prestation, and

which  the law will enforce

Refers to bookkeeping; asset money owing  or due  to one

In Accounting person or entity

One’s reputation  or standing in business

In business reputation In People v Concepcion  credit means  his ability to  borrow 
money by virtue of the confidence or trust  reposed  by a lender
that he will pay what he may promise

Kinds of Credit 
transactions Simple loan (mutuum) in whatever  form including bank loans 
1.Loan and overdrafts

Sale on credit
2.Price deferment
agreements Mode of extending  credit through  a non-cancellable lease
contractunder  which the lessor acquires at the instance of the
3. Financial lease lessee, machinery or equipment, motor vehicle , appliances
business and office machines and other immovable or movable
property in consideration  of the periodic payment  by the lessee
of a fixed  amt of money sufficient to amortize a certain 
percentage of the purchase price  or acquisition  cost including 
incidental expenses

Pincipal Contracts Exist without need for another contract

    Wx. loan and deposit

Accessory contracts
Voluntary  and legal
Real and personal right
Real
personal
Onerous or gratuitous
Onerous
gratuitous
Transferability of credit
Bailment of contracts
Bailment
Commodatum
deposit
Kinds of bailment
1. Actual bailment
       2. Bailment for hire
       3 Baiment for mutual
benefit
Cannot exist without principal contracts; contract of
security;exist to  secure the performance of  the  principal
obligations
   Ex. guaranty, surety, real estate mortgage, chattel  mortgage,
pledge, and antichresis
Contact of security
Credit transactions are created by will of the parties; meeting of
minds; with all eelments of contract (object, consent,
consideration)
Mortgage  creates real rights over the properties
Loan create  personal rights  to demand the performance  of an
obligation  to  give-to pay the loan
Loan may be onerous or gratuitous; onerous if  to pay interest; 
Contract of commodatum
Transferable; through assignment
Dation in payment; when debtor to be release from his debt 
assigns a credit  he has against  a3rd person 
Delivery  of personal property by bailor  for some use on a mere
deposit, express or implied that after  purpose has been fulfilled,
it shall be delivered  back to bailor or kept until bailor claims it
back
Delivery  for use but expected to return it
Delivery for safekeeping but expected to return it
There is Actual delivery or constructive delivery
Contract where bailor agrees to compensate the bailee 
Parties  contemplate  some price  or compensation in return for
the benefits  flowing from the  bailment, implied or expressed
May secure possession with the right of use  and enjoy it as
long as he  pays rentals and becomes absolute owner after
 completing the installments ;common in auto lease agreements

When the person having possession of a chattel  holds it  under

       4. Bailment for lease such circumstances that the law  imposes upon him  the
obligation to deliver it to another

This is depostum or naked bailment;  made only for  the benefit 

of the bailor and is not  a source of  profit  to the bailee
       
        5.Constructive Arising by the accidental leaving  of personal property in the
bailment possession  of any person without negligence  on the part of its
owner

Bailment that is upon consideration  and for which  a payment 

is to made to the bailee or from which he is to derive some
6. Gratuitous advantage
bailment

7. Involuntary
bailment
2. Lucrative bailment

Juridical possession Possession of bailee  is possession  in the  concept of holder;

bailee has juridical possession  of the thing he holds 
May be held liable for estafa if  there is misappropriation  of the
personal property entrusted to him

Art 1933
Contract of loan
Commodatum and mutuum
By the contract  of loan , one of the parties  the bailor delivers to
another the bailee  either something  not consumable so that 
bailee may  use it for a certain time and return the  thing or 
money   or consumable  so that the borrower may consume it 
with the obligation  to pay  the same  amount  of the same kind
and quality

Who delivers  money or goods, consumable on non consumable

bailor/lender
Bailee or borrower
to  another
Receives something not consumable wit the obligation to return 
the same or he receives  money or  consumable  so that  he
may consume it with the obligation  to pay  the same amount  of
the same kind and quality

Characteristics of a loan
1. Real contract Commodatum or simple loan  is not perfected  until the delivery 
of the object is perfected 
 *contract of loan is perfected when check is encashed

Object of contract are loan proceeds

Petitioner failed to present  returned checks  to prove that the
In Naguiat vs CA respondent  encashed the check  which will established that the
loan was perfected

Aquino opposes the SC  ruling that contract of loan is reciprocal

obligation for him it is unilateral

For aquino  contract of loan is begins afte the delivery of the

lender; after delivery the contract becomes unilateral as the 
obligation  is on the part  of the borrower  to pay

It may be of  a document titled loan agreement or by promissory

note.
PN- solemn acknowledgment  of a debt  and a formal
commitment  to repay it
NIL -PN is a  unconditional promise in writing  made by  one
person  to another, signed by the maker, engaging to pay on
2. Loan is not a formal demand, or in a fixed future time a certain money to bearer
contract; formalities
not  required to
make the  contract
valid

Kinds of loan
commodatum Bailor delivers  to bailee  something consumable  so that the
bailee  may use  the same thing for a certain time and return the
thing

Bailor delivers money or consumable thing  upon the condition

that same amount  of the same kind  and quality shall be paid

Accepted Promise to loan An accepted  promise to deliver a thing by 

Commodatum or mutuum is  binding to parties; consensual

Ex application for loan approved by bank is  accepted promise

to loan
Credit card agreement  accepted promise to loan  between the
company and cardholder

Discounting Mode of loaning money with agreement that  interest is

deducted in advance.

discount Reduction of price

Revolving credit
Mutuum
Fixed sum credit Can be fixed sum credit or  revolving credit
Borrower agrees  to take a fixed  amount of credit to repay  this
with interest  or charges and the transaction  is terminated  upon
full payment. 

Credit facility  whereby  a borrower  is given credit limit or credit

Revolving credit line; which borrower can draw on as he chooses and where 
each drawing  thereby reduces the amount  of remaining credit
that is available while each repayment  pro tanto restores it

Amount of money  or merchandise which a banker, merchant or

supplier  agrees to supply  to a person  on credit and generally
agreed to in advance.
Fixed limit  of credit granted  by a bank,retailer,credit card
Credit line
issuer 

Sps granted 5.7 m credit line by BPI. The bank  claimed that
ther was no credit line as there as was no PN for the said
amount. The SC ruled that PN is not required  to have a fixe
credit limit. But the bank is not obliged to grant the full amount.
BPI only released 800 k to the spouses. 
In Sps Pio Dato v BPI

Art 1935
Art 1940
Main purpose Latin “COMMODATUM” means usefulness
Thing supposed to be returned; owner has title to fruits
(accession discreta) civil, industrial and natural ‘

But ARt 1940 provides that fruits may be loaned by stipulation

Use of thing loaned is temporary and shall be for a period only;

or for a specified period only
Ex. bailee lending a tool to another to aid him in  harvest of
bailee’s crops

Republic vs Ca  GR 46145
The director of lands opposed  the registration  of the land of
Baloy and his heirs  saying that the land  had become public .
The land had been used as  US naval reserve. 
The court held that  the US Navy  was not the owner of the land.
And its occupancy is only of a commodatum. Baloy did not lose
possession. His rights were only suspended because of the US
Navy  occupancy

COMMODATUM USURFRUCT

Bailee cannot enjoy  fruits Jus fruendi included in the right of the usurfructuary
unless stipulated
(jus fruendi) May convey his right; alienate his right; mortgage

Right of bailee is personal Can allow 3rd persons to use the thing
cannot be transferred
There is right of retention
3rd person cannot be
allowed to use

No right of retention
(except for damages under
1951 and 1944

LEASE

Gratuitous Onerous;rentals  are paid

Real contract Consensual contract

Cannot enjoy fruits Not entitled to fruits extends to a particular use only
Cannot be transferred Cannot  assign his  right to the lease except with consent of
3rd person not allowed to lessor
use Can allow 3rd persons  to use the thing through sublease if
Bailee to pay for ordinary  allowed
repairs  fo the use and Lessee has no obligation to pay repairs
preservation of the thing

Art 1937  Generally non consumable; immovable or movable 

Objects of commodatum Not consumable  because the use is temporary rather than
consumption
Can be consumable if for exhibit not for consumption
Ex corn, money,house, car

Respondent’s money  is deposited in the bank  to make it look

that  the firm had sufficient  capital with the promise of returning
In Producers Bank vs CA  the money
But contract is a bank deposit governed by rules on simple loan
Bank is obliged to return money  upon withdrawal

When  consumable goods are loaned only  for purposes of

exhibition  like in the case where money is lent to be deposited
to the bailee’s account to make it appear that it had
capitalizatiion but with the promise to return the money after 30
days
The Kasunduan is not a commodatum but a  landlord tenant
relationship as relationship based on tolerance is a landlord
tenant relationship
Not commodatum as the kasunduan is not gratuitous as
 Guevarra is obliged to maintain the orderliness of the house and
lot

In Pajuyo v CA

1938
Bailor need not be owner of
the thing loaned
Because the purpose is for temporary use only
Bailor may not be the Real right transferred is possession now ownership
owner
Lessee or usurfructary can be bailor
Bailee cannot be bailor in same thing as the right is not
transferable and personal

Must have the right to convey  the use of thing

Necessary to be bailor
1. Right to possess and use the thing
2. The right to transfer  such right  to use and possess

Art 1939
Commodatum is purely
personal 
As it is gratuitous  there is presumption that  th bailor conveyed
Death of bailee or bailor the temporary use  of the thing for free if not for bailee only. 
extinguishes the contract Cannot be assumed that  other are to allowed to benefit

Members of the household are not covered by the “3rd persons”

They can use the object unless there is prohibition  

Bailee cannot lend  nor

lease the object  of contract
to 3rd persons

Obligations of bailee Art

1941 to 1945
1. Exercise due diligence while in possession of the thing
2. Pay ordinary expenses  for the use  and preservation  of
the loaned
3. Responsible  for the loss  of the thing  in the cases in art
1942
4. Liable for any loss  or injury  due to  bailee’s faut  or
 negligence
5. Return the thing upon expiration of the term of contract
Solidary obligations 

Liable for any loss;obliged to pay for  ordinary expenses of the

2 bailees thing loaned
But does not answer to  deterioration  of the thing loaned  due to
use and not of his fault

Liability of  bailee for loss
1. Devotes the thing for other purpose  for which it was
loaned
2. Keeps it longer than stipulated
3. If the thing loaned is  with appraisal value unless the
bailee is exempted  from responsibility  in case of
fortuitous event
4. Lends to a third person
5. He chooses to save his own thing over the borrowed
thing

Bailee cannot retain  the thing loaned  on the ground that bailor
owes him  something
Right of retention But has right of retention for damages (bailee suffered because
of the defect of the thing)

Obligations of bailor art

19446-1948
There is obligation to return the thing delivered otherwise  there
Return of the thing will be crimina liability of estafa

Cannot demand return till after expiration of period stipulated

When bailor has urgent need 

When relation is precarium
Bailee commits act of ingratitude
Exception

1. Duration of contract and period of use is not stipulated

2. Use of thing  merely tolerated
Precarium 
Period of commodatum is suspended when bailor takes the
thing due to urgen need; due to fortuitous event

1. Bailee commit offenses  against the person and property

of bailor, his wife or  children
2. Imputes bailor of  criminal offens involving moral
turpitude unless act is committed against the bailee his
 wife or children
3. Bailee refuses support  when baile is morally and legally
bount to give support to bailor

Art 1950
Ordinary expenses For the use and preservation  of the thing;routine  or regular
expense
Bailee

Extra ordinary expenses For the preservation of the thing; bailor;not  routine expense
Bailee

If th extraordinary expenses arise from the  actual use  of th

thing by bailee even without his fault shall be borne equally by
bailor and bailee

Art 1950
Hidden defect/flaw 1.there is hidden defect
2. Bailor is aware of the hidden defect
3. Bailee is not aware of the h.defect
4. Bailor did not notify  bailee
4. Bailee suffered damages bec of the h.defect

Art 1952

Abandonment  Return of the thing does not  excuse  the payment  of the
damages due. From bailee. 
Value of the thing returned may be less than the value of the
damages
Extinguishment 

1. Expiration of term
2. Accomplishment of the purpose  or use of thing
3. Return of the thing with conset of bailor
4. Return of thing in precarium
5. Return  of the thing for acts of ingratitude
6. Death of party

Cannot acquire ownership through prescription

Possession is not in the concept of  a holder
Ownership not transferred
prescription

SIMPLE LOAN /MUTUUM

Art 1953

Simple loan mutuum Person receives  a loan of money  or any fungible  things
acquires the ownership of  it and is bound to pay  to the creditor 
an equal amount of  the same kind and quality
Money or fungibles Are those that can be  replaced  by  another  property of the
same kind
Ex. sack of rice

 Transfer of value can be mutuum

Ex Check delivered  is value delivered and not money

Creditor Delivers money or other things

Debtor Duty is to pay ; same amount and kind  shall be paid
Contract of loan is to pay not to return
Ownership is transferred upon perfection of contract
Enjoys  the right conferred to the  owner of property
Right to use jus utendi
Right to consume by use jus abutendi
Right  to dispose jus disponendi

Pay the amount of money borrowed same amount 

If there is change in value of thing, pay the  value of thing at the
time of perfection of  the loan
Chee kion yam vs Malik
Cannot be liable of estafa as not required to return the thing but
to pay the loan

Chartp45

Agent Requires spa for agent to secure loan in behalf of principal

When one deposits in the bank  he lends money to the

Bank deposits bank;bank deposit  must be paid  upon  demand by depositor

Money can be used by bank it is not in trust or safekeeping 

Bank has no duty to 3rd persons unless there is order of

garnishment
bank  officers cannot be held liable of estafa for the use of
money (quaified theft if bank employee gets the deposited
money)
Banks deposits are not special preferred credits
Bank has legal right to compensation

Also a simple loan

Employer extends  cash advvances to employees
Employees must liquidate  all cash advances ;salaries may be
subject to deduction

Cash advances Settling of indebtedness

liquidation

Art 1954
barter Barter or exchange; exchange of  properties  without any
obligation to return  the thing received
In simple loan  the object is money and fungible things; if  the
thing to be exchanged is non fungible then the contract is barter

Art 1955

Legal tender and inflation  Payment of debts shall be in stipulated currency or in the legal
art 1249 tender in Phil

PN and BOE  shall have effect of payment when encashed or

when document is impaired due to the fault of creditor

Creditor fails to encash check, obligation of debtor remains even

if check is stale 

Value of currency in the  establishment of obligation will be

followed if there is inflation or deflation
Payment not in legal tender
Foreign currency allowed if agreed upon
Coins legal tender
1,5, 10 peso coins- max 1,000 payment
5, 10, 25 cents- 100 pesos max payment

General rule
Value of currency at the time of establishment of obligation 
shall be the basis of payment
Exceptions:
If parties agreed thaht  currency at the time of payment  shall be
basis
In case of  extraordinary inflation or deflation 
*extra ordinary  inflation and deflation  must be declared

Art 1956-1961

Interest Price paid  for the use of money  for a period of  time  and are
expressed  as a percentage of the total outstanding balance 
either fixed or variable
Cost of borrowing money-borrowing rate
 Cost of lending money- lending rate

Kinds of itest
Regular interest for the use of money 
Monetary interest Requisites:
1. Payment of interest  is agreed upon
2. Stipulation must be in writing
3. Rate not against the law
May be paid in kind its value appraised at the time of payment
Legal rate is 6%per annum

Interest as damages obligation with a penal clause ;accessory

obligation 
Interest is part of  the loss suffered
Compensatory or Penalty
Obligation is from law contracts quasi contract quasi delict is
interest
breach contravenor can be held liable

P 58

Loan  and forebearance 12% per annum; 

Forebearance Contractual obligation  where a lender or creditor  has refrained 

during a given period from requiring  the borrower  to repay the
loan  then due and payable
Arrangements other  than loan agreements, 
Where a person agrees  to th temporary use of his money or
goods  pending the happening of certain events or conditions

Judgment based on damages in quasi-delict  is not loan or

forbearance
Judgement becomes forbearance  from the time  judgment 
becomes final and executory
Cannot be unilateral 
Cannot be unconscionable
Must be of mutual agreement
Interest

Interest due  and unpaid shall not earn interest

Compounding interest
(interest on interest)
1. Stipulated interest upon judicial demand
General rule 2. Interest shall earn interest  when agreed upon by
stipulation interest due and unpaid  added to principal
shall earn new interest
Exceptions
Awarded in concept of penalty or damages
Interest on damages

Art 2209-2013
Escalation clause Party cannot unilaterally increase  the rate of interest
Not  wrong but  should be  on reasonable and valid grounds
Interest must be mutually agreed upon

“Within the limits  allowed by law  at any time  depending on

whatever policy it may adopt  in the future

If escalation clause is annulled, the principal amount is subject

tot  original  stipulated rate  of interest; 6%per annum;
Interest paid applied to the  stipulated unpaid interest then to the
Effect of invalidity  of capital or principal
escalation
Stipulations even if agreed upon may still be  illegal if  contrary
to law, moralscustoms,  public order and public policy

Must not also be unconscionable

Art 1306  Disclosure  statement  must be  furnished  prior to 

Parties  may establish consummation of the transaction
stipulations   and clauses
To protect users of credit  from a lack of awarenes  of the true
Penalties and surcharges cost ; and from the concealment of hidden charges

Sec 4 lof Lending Act Violation of the Lending Act when borrower is  made to sign in
blank the PN  or docs and where the bank unilaterally fill them
up later

Amount to be paid by the debtor incident to the exgtension  of

credit  such as  interest, discount, collection fees,credit
investigation fees, attorney’s fees, other service charges

Finance charge

USURY LAW

Usury is non existent BSP  removed the interest ceilings prescribed by the  Usury
Law

ARt 1306  Interest rate may be void if grossly excessive  and  contrary to
CP Circular  no 905  law can repeal law
Monetary Board  2. Max rate for loans  of low priority such as consumer
New Central Bank Act or
RA 7653 did not repeal
Usury law 
Sec 63  of the New Central
Bank Act as amended by
RA 11211
Manual of Regulations for
Banks  (MORB) consistent
with  CB cis=rcular 905
Pawnshop
PD114 provides that Usury
law is applicable
Financing Companies
Sec 7 of RA 9474
Lending Company 
Regulation Act 2007
Prinicipal obligation valid
Interest  can now be charged  as lender and borrower agreed
upon
morals, good customs and public policy 
Suspended the  usury law effectivity but did not repeal it; only
Issued by CB’s Monetary Board pursuant to PD 1684
Monetary Board prescribes  the maximum rates  of interest  for
loans and forbearances
1. Prescribed max rate  of interest for loan  or renewal  of
forbearance for money
loans loans by pawnshps, finance companies 
3. Different max rate for different types of borrowings 
including deposits  loans of financial intermediaries 
It supplemented the law  with loans by banks and other financial
institutions
Whenever abnormal  movements  in the prices  endanger  the
stability  of the economy the Monetary Board shal take such 
remedial measures
Rate of interest  including commissions , premiums, fees and
other charges on any loan and forbearance of money and
goods  regardless of maturity  shall not be subject to regulatory
ceiling
Mas service charge of 5.00 but not to exceed 1%  of the
principal loan
Monetary board  prescribes interest rate
Shall comply with RA 3765 Truth in Lending Act and  RA 7394
Consumer Act of the Philippines
Party cannot unilaterally impose  the obligated to pay increase
in interest  previously agreed upon
In usurious loans the entire loan does not become void, the
unpaid balance  still stand s and valid. 
Only the usurious interest is void
Paid in exces  of the interest  may be recovered of debtor with

Usury law covers
1. Loans
2. Forbearance of
money goods, or
credits
Does not apply to  contract
of sale or contrac to sell
Creditors
Compounded interest
Time price differential
Loans on Bottmy or
Respondentia
Stipulation on attorney’s
fee
CREDIT CARD
Credit card
interest thereon from the date of payment
Cover loans by bank, pawnshops, finance companies and other
financial institutions
If compounded interest is agreed upon, the effective rate shall
not exceed  the max rate imposed by BSP
Where in the lawful loan  there are additional charges 
disguised  providing payment  by the  borrower  for the lender’s
services which are of little or no value
Does not apply in time price differential 
Conditional sale based on installment plan
Ex car oan
Encourage cash sales for reduced price
Increase in the price for credit; does not constitute interest
A loan in which under  any condition  whatever,  the repayment 
of the sum  loaned and of the premium  stipulated depends 
upon  the safe  arrival in port of the goods on which it is made,
or of the price they may  receive in case of acccident
Usury law does not apply , interest may be higher
Lender may include  attorney’s fee to cover the cost  of retaining
counsel  in case of insttituting judicial proceedings  to collect his
debt
Any card, plate, coupon book, or other credit device for the
 purpose  of obtaining  money, goods, property, labor or services
or anything of value on credit

Means  any card, plate, code account  number electronic serial

Access device number , personal identification number,  telecommunications 
service, equipment or instrumental identifier  or other means  of
account  access  that can be used to obtain  money goods,
services, or anything  of value  or to initiate a transfer of  funds

Means  a consumer credit extended  on an account  pursuant 

to a plan  under which
1. The creditor  amy permit  the person to  make purchases
or obtain loans from timeto time, directly from director or
bt use of credit card
2. Person has the privilege  of paying  the balance
3. Finance charge  may be  computed by the  creditor  from
time to time on an unpaid  balance

Governing law RA 8484 “Access  Devices  Regulation  Act of 1988”

To recognize the recent  advances of technology  and use of 
access devices  in commercial transactions

MORB manual of regulations for banks by BSP

NCC oblicon  and loan

Historical background Introduced in 1950 in NYC by Diners Club

Followed by the american Express in 1958

In the Phil, Pacific bank  brought the first credit card

Nature of credit card Tripartite relationship between issuer bank, cardholder,

transactions merchants

RA  8484
The consumer-credit arrangement  that exists between  the
issuer  and the holder  of the credit card  enables  the latter  to
procure  goods  or services on a continuing  basis  as long as
outstanding balance does not excess limit. 
The cardholder has the  power to  obtain present control  of
goods  or service on a promise  to pay  for them  in the future

Three contracts 1. Contract  of sale between  betwee  the cardholder  and

the merchant or business establishment that accepted 
credit card
2. Loan agreement  between the credit card holder and the
credit card issuer
3. Promise to pay between  the credit card  issuer  and the
merchant  of business establishment
 Credit car holder
Credit card issuer

parties

Credit card issuer- card In our jurisdiction  we adhere  to the Gray ruling,  the
holder  relationship relationship is  a contractual one governed by the terms and
conditions  found  in the card  membership  agreement. This
contract provides  the rights  and liabilities  of a credit  card
company  to its  cardholders and vice versa

Surety credit  card holder Solidarily liable  with the credit card  holder
Issuer can proceed  against surety  
Does not  incur liability   unless  the credit cardholder is held
liable
 Surety  remains liable although  there was  novation  of the
agreement  by upgrading the ccard

Obligation of  merchant  If it refuses to  accept the card  without  following the prescribed
procedure causing humiliation to the  customer

No duty to approve Issuer has the right to deny authorization  for any request
charge

Terms and conditions With pre approved card the issuer  must prove  that  the client 
read and consented  to the term  and conditions governing the
card’s use
Under MORB sending of pre approved cards are prohibited
;unsolicited call  offering cc; sending supplementary cards

Escalation clause Rate of interest  in the credit card agreement maybe sustained
as long as not against the law, morals, p policy and p order

Accelaration claus Any provision  in the contract  between the bank  and the
cardholder that gives  the bank the right to  demand the
obligation in full in case off  default or non payment

Contract of adhesion  This is the card membership agreement

Which the the terms  are prepared solely by the  issuer  and the
cardholder only signs  . 
Cannot object; take it or leave it basis

Can be void if  too one sided 

Compliance and breach Issuer cannot implement  conditions not stated  in the
agreement like:
Cancellatiion of card due to non submission of form when  the
obligation is  just to pay the  outstanding balance
Premature cancellation of card
Issuance of a supplementary card to  fraudulently
Failure to  honor the card 
Credit limit Excess payment  does not amount to novation  and does not
increase the limit

Automatic cancellation  Automatic suspension if cardholder exceeded the credit limit

Suspension with  outstanding balance  after 30 days from billing
statement

Interest and charges

Finance charges Amount to be paid  by the debtor incident  to the extension  of

credit  such as interest  or discounts  collection fees credit
investigation charges

Amount in addition  to interest, imposed for non-payment in a

Penalty  charges prescribed period

Late payment  shall be based on the  unpaid minimum amount

due 

Loss of credit card Must notify issuer to be absolved  from the  fraudulent use of
the  lost card

Duty to disclose  to Sec 4 of RA 8484 disclose in writing or orally  by mail telephone

applicant or other means:
Annual percentage rate of interest 
Annual fees
Fees for delay of payment cash advance fee  over the limit free

Disclosure omitted Does not impose fee in connection with telephone solicitation
….

Collection  Billing statement  should reflect minimum  payment required 

1. Total outstanding balance  multiplied  by the required 
payment percentage
2. 2. Amount  which is  part of any fixed  monthly
installment  that is charged to the card
3. Amount in excess of the credit line
4. All past due amount if any

confidentialty shal l keep confidential the data of holder

Except in :
With consent of  cardholder
Release  of info with other  financial institution  
Coupon order of court
Disclosure to collection agencies
Disclosure to 3rd party  service provider
Disclosure to  insurance companies  for insuring the  bank from 
cardholder default  of other credit losst