BSP Regulations on Consumer Protection – T & C

The T&C should include at least the following:

i. The full price or cost to the customer including all interest, fees, charges, and
penalties. The T&C must clearly state whether interest, fees, charges, and
penalties can change over time. The method for computing said interest, fees,
charges, and penalties shall be presented in accordance with Circular 730 dated
20 July 2011;
ii. General information about the operation of the products or services including the
customer’s obligations and liabilities;
iii. 2-day cooling-off period, if applicable.
iv. Cancellation, return and exchange policies, and any related cost;
v. The actions and remedies which the BSFI may take in the event of a default by
the customer;
vi. Procedures to report unauthorized transactions and other contingencies, as well
as the liabilities of parties in such case; and
vii. A summary of the BSFI’s complaints handling procedure.

Cheetah Checklist

Product Type/Name Y/N Details * * Details:

The general T&C or any contract/agreement specific Indicate where in the
to a product or service, at a minimum, shall include T&C the BSP Cir. 857
the following: provision can be found.
a. General information about the operation of
the products/services including the customer’s
obligations and liabilities, to include all
interest,fees,charges,penalties and the method for its
computation;
b. 2-day cooling-off period, if any after signing the
contract;
c. Cancellation, return and exchange policies, and any
related cost;
d. Actions and remedies which the Bank may take in
the event of a default by the customer;
e. Procedures to report unauthorized transactions
and other contingencies, as well as the liabilities of
parties in such case;
f. Summary of the Bank’s complaints handling
procedure;
g. For credit card clients, the following information
shall be particularly provided:
i. A table of applicable fees, penalties and interest
rates on credit card transactions, including the period
covered by and the manner of and reason for the
imposition of such penalties, fees and interests; fees
and applicable conversion reference rates for third
currency transactions, in plain sight & language, on
materials for marketing cards, and on credit card
billing statements; Provided, that these disclosures
are in addition to the full disclosures of the fees,
charges and interest rates in the T&C of the credit
card agreement found elsewhere on the application
form and billing statement; and
ii. A reminder to the credit card holder in the monthly
billing statement, or its equivalent document, that
payment of only the minimum amount due or any
amount less than the total amount due for the
billing cycle/period, would mean the imposition of
interest and/or other charges.
* Table of fees, penalties & interest rates & reminder
shall be printed in plain language & in bold black
letters against a light/white background & using the N
minimum Arial 12 theme font & size on the first page,
if the applicable document has more than one page.
* Product
brochures/materials/communications/digital ads
should contain all features as well as risks.
* Product Highlight Sheet (PHS) is required for
investment products higlighting the costs & risks.
* Should disclose pricing information in the website
etc.
* Information should be factual & not misleading.
* Can be easily read & understood.
* Disclosure that bank is a regulated entity of the BSP
with contact details.
Ex. UnionBank of the Philippines is an entity regulated
by the Bangko Sentral ng Pilipinas. You may contact
the BSP - Financial Consumer Protection Department
(FCPD) at (02) 708-7087 or
consumeraffairs@bsp.gov.ph.
* Customers should be informed of their right to
complain & where they can complain.
Ex. You may also contact our Customer Service Hotline
at (+632) 8418600 or through
customer.service@unionbankph.com.

*Ensure that all written/digital communication

materials bear the business name.
* For new products/services with OSP reliance, the
turnaround time for complaint resolution should be
indicated in the contract/agreement.
Protection of Client Information
* Written privacy policy to safeguard customer’s
personal information.
Fair Treatment
Business units shall ensure the following in designing
and offering products and services to consumers:

a. Offer market-based pricing;

b. Consider the varying needs and interests of
different types of customers, such as fit for the
targeted customer, particularly those more
vulnerable; (Targeted to ex. classic, gold, business
class, plat clients)