BPI Express vs.

CA and Ricardo Marasigan

Gr.No. 120639 September 25, 1998

Facts:
Marasigan was the holder of a BPI credit card. Due to his delinquency in
payment, immediate demand was given by BPI to pay account. Marasigan issued a
postdated check. BPI,having informed of the postdated checkonly a week after
receipt, already sent a letter to Marasigan, informing him of the temporary suspension
of the privileges of his card. And on a relevant date, Marasigan after eating in Café
Adriatico tried to use his card to pay but it was dishonored. Marasigan filed a
complaint for damages against BPI.

Issue:
Whether or not Marasigan can recover moral damages arising from the
cancellation of his credit card by petitioner credit card corporation.

Ruling: NO.
As it was Marasigan’s own negligence which was the proximate cause of his
embarrassing and humiliating experience, we find the award of damages by the
respondent court clearly unjustified. We take note of the fact that Marasigan has not
yet paid his outstanding account with petitioner.
The issuance of the postdated check was not effective payment on the part of
Marasigan and thus, the bank was justified in suspending temporarily his use of the
credit card. A check is only a substitute for money and not money, and the delivery
of such instrument doesn't itself operate as payment.