ACCESS DEVICES REGULATION ACT OF 1998

Case Overview and Summary

Summary of the Access Devices Regulation Act of 1998

Definitions (Section 3):
- Access Device: Any card, code, account number, or identifier used to obtain money, goods, services, or initiate fund transfers.
- Counterfeit Access Device: Any fake, altered, or forged access device.
- Unauthorized Access Device: Any stolen, lost, expired, revoked, canceled, or fraudulently obtained access device.
- Access Device Fraudulently Applied for: Any access device obtained through false information or misrepresentation.
- Consumer: A natural person.
- Credit Card: A card or device used to obtain money, goods, or services on credit.
- Device Making or Altering Equipment: Equipment used for making or altering access devices.
- Finance Charges: Fees related to credit extension, such as interest, discounts, and service charges.
- Open-end-credit plan: A credit plan allowing repeated purchases or loans with a finance charge on the unpaid balance.
- Penalty Charges: Additional fees imposed for non-payment within a prescribed period.
- Produce: To design, alter, authenticate, duplicate, or assemble.
- Trafficking: Transferring, disposing of, or obtaining control of access devices with intent to transfer or dispose.

Credit Card Application and Solicitation Disclosures (Section 4):
- Annual Percentage Rate (APR) for interest on credit obtained.
- Any annual, periodic, membership, account maintenance, or inactivity fees.
- Minimum finance charge for each period with outstanding credit subject to finance charge.
- Transaction charges for using the card to purchase goods or services.
- Fees or penalties for delayed payment.
- Balance calculation method used to determine finance charge.
- Cash advance fees.
- Over-the-limit fees for exceeding credit limit.

Computations and Explanations (Section 5):
- Credit card issuers must provide a detailed explanation and clear illustration of how charges and fees are computed.

Exceptions for Telephone Solicitations (Section 6):
- Disclosures may be omitted if certain conditions are met, such as not imposing fees unless the consumer accepts the card, providing written disclosures within 30 days, and clearly stating that the consumer is not obligated to accept the card or pay fees unless using the card.

Disclosure Prior to Renewal (Section 7):
- At least 30 days before renewal, disclose the expiration date, fees, APR, and method to terminate credit availability.

Failure to Disclose (Section 8):
- Failure to disclose required information may result in suspension or cancellation of authority to issue credit cards by relevant government agencies.

Prohibited Acts (Section 9):
- Producing, using, or trafficking in counterfeit or unauthorized access devices.
- Using an access device fraudulently applied for.
- Possessing counterfeit or fraudulently applied for access devices.
- Producing, trafficking in, or possessing device-making or altering equipment without lawful business.
- Inducing or allowing others to produce, use, or traffic in counterfeit or unauthorized access devices.
- Multiple imprinting on transaction records to appear as additional transactions.
- Disclosing access device information without the holder's permission.
- Obtaining money or value through access device use with intent to defraud and fleeing.
- Possessing an access device or materials without the owner's or issuer's authority.
- Writing or altering approval numbers or amounts on sales slips without authorization.
- Effecting transactions with another person's access device.
- Soliciting or selling access device information without authorization.
- Presenting evidence of transactions to a credit card system member or agent without authorization.

Penalties (Section 10):
- Fine of ₱10,000 or twice the value obtained, whichever is greater, and imprisonment of 6-10 years for offenses under Sections 9(b)-(e), (g)-(p) without prior conviction.
- Fine of ₱10,000 or twice the value obtained, and imprisonment of 10-12 years for offenses under Sections 9(a) and (f) without prior conviction.
- Fine of ₱10,000 or twice the value obtained, or imprisonment of 12-20 years, or both, for any offense under Section 9 after a prior conviction.

Conspiracy, Frustrated, and Attempted Fraud (Sections 11-12):
- Conspiracy to commit access device fraud is punishable as the consummated offense.
- Frustrated access device fraud (all acts of execution performed but not produced) is punishable with two-thirds of the penalty for the consummated offense.
- Attempted access device fraud (commenced but not all acts of execution performed) is punishable with one-half of the penalty for the consummated offense.

Accessory to Access Device Fraud (Section 13):
- Buying, receiving, possessing, keeping, acquiring, concealing, selling, or disposing of items obtained through counterfeit, unauthorized, or fraudulently applied for access devices is punishable with one-half of the penalty for the applicable consummated offense.

Presumption and Prima Facie Evidence of Intent to Defraud (Section 14):
- Mere possession of access devices, counterfeit devices, fraudulently applied for devices, device-making equipment, or access device materials without lawful authority is prima facie evidence of intent to defraud.
- A cardholder who abandons or surreptitiously leaves their stated residence without informing the credit card company, while having an outstanding and unpaid balance of at least ₱10,000 past due for 90 days, is presumed to have used the credit card with intent to defraud.

Loss of Access Devices (Section 15):
- In case of loss of an access device, the holder must notify the issuer of the details and circumstances of the loss to be absolved of financial liability from fraudulent use after reporting the loss.

Reporting Requirements (Section 16):
- Companies issuing access devices must annually report access device frauds committed against their holders to the Credit Card Association of the Philippines by March 31 of the succeeding year, for consolidation and submission to the National Bureau of Investigation.