THE BANGKO Sentral ng Pilipinas (BSP) kept the 3-percent monthly cap on finance charges for credit-card loans.
On November 12, the BSP said the monthly add-on rate ceiling for credit card installment loans was raised to 1.5 percent from the current 1 percent.
The maximum one-time cash-advance processing fee was also increased to P300 from P200.
The latest changes are covered by BSP Circular No. 1242 issued on Nov. 10.
It shall take effect 15 calendar days after publication either in the Official Gazette or in any newspaper of general circulation.
The BSP said the adjusted ceilings will apply only to new transactions starting on the effectivity date of the circular.
Credit card installment loans entered into before this date will remain subject to their agreed terms and conditions.
The BSP said the adjustments aim to balance consumer protection while also providing credit card issuers more flexibility in setting charges amid rising operating costs.
The central bank first introduced the ceilings in 2020 and partially made adjustments in 2023.
“The BSP regularly reviews the caps on credit card fees and charges. It takes into account overall economic conditions, the soundness of banks and other financial institutions, and consistency with the BSP’s monetary policy settings, among other factors,” said the BSP. (PNA)
