sam fisher

Let me first thank the GMs here for their advice and insights on this topic. I posted a reply to this thread regarding Credit Card problems, and with a bit of luck, perseverance and God's grace, I was able to settle my debt just a couple of months ago. Aside from browsing thru this site and other sites as well, I happen to have chanced upon a friend who worked for a bank a couple of years ago. I consulted him regarding my problem and he shared his knowledge regarding procedures of banks regarding cases such as mine.

According to him, for those who have some sort of "Credit Shield" on their card, in the event of non-payment or pre-defined reasons, it would usually pay up the balance remaining on the card. In short, its some sort of "insurance" on your card, that when you sign up for it (option when you apply for the card or will be offered at some point), which would mean you will pay a certain charge (a certain percent of your balance), it would alleviate scenarios where the card holder would be unable to pay.

I believe I had that on my card, and a few months back, the collection agency sent me its "final" letter to attempt to collect. My mere 20k or so debt a couple of years ago, now bloated to around 300+k!! the good thing was that according to that letter, I only had to pay somewhere around 30k to settle the full amount (like an amnesty program of sorts). To cut to the chase, I have paid the amount and followed up with the bank until they provided me a bank letter of full payment as a proof that I have settled my debt. Btw I was doing all these transactions thru a relative of mine back home since I am out of the country.

Now that I have settled my bill, and have a certificate of full payment from the bank, I assume my name is still on that Credit list thingy. My question now is, when would be the proper time to ask for my name to be written off the "Credit List" and would it be possible to do so? I would wish for my name to be off that list for a possible future house mortgage loan, as well as clear my name as well.

As a parting note, and a piece of advice as well based on my experience, if you can AVOID having a credit card, do so. Now, if you really need to have one, remember 3 things:

1. Charge only what you can afford to pay.

2. When you oay your monthly ammortization, DO NOT just pay the minimum due! Always try and pay a few hundred or thousand bucks extra, this is to ensure that the monthly interest is more than covered up for and to lower down the payments until you can settle the entire amount, if at all possible.

3. Please remember that a Credit Card IS STILL CREDIT. Simply put, its money that you DONT have yet, and that you will eventually pay interest for. So dont be over zealous with swiping that card anytime you feel like it whenever something fancies you.

I've been a member of this site for several years now, and an embodiment of what a lurker is. Nevertheless, I share things when I think it is really important and helpful. Thank you GMs and for all those who have Bad Credit or other issues like that, dont lose hope! Face and settle it!

Some collection agencies have resorted to filing estafa cases wherein they allege that the client transferred residence or office address without informing the bank with the intention of defrauding them. These are isolated cases however since filing an estafa case involves paying the filing fees. With the creation of small claim courts, it is much easier for them to file an ordinary collection case. I wouldn't worry too much about an estafa case.

Thanks for all the advice doc, I think I have the courage now to face that skeleton in my closet...appreciate your feedback really!! Maraming Salamat!

BTW homealoneguy, I have to give credit to you for posting such a lengthy story. This motivated me to face what I have been trying to escape from for these past years. Cheers to you man!

Banks subcontract a lot of things since this is more cost efficient, so once a credit card account goes sour, it is automatically passed off to a collection agency who gets a certain percentage of any successful collection.

 

For a hold departure order to be issued by the Bureau of Immigration, a criminal case must first be filed. Non-payment of debt is not a criminal offense, unless there is an element of fraud, in which case it becomes estafa. Once a criminal complaint is filed, the fiscal will make a preliminary investigation, which means he/she will study the complaint and any evidence submitted by the complainant and the counter affidavit of the other party to determine if the filing of a criminal case is warranted. If the fiscal determines that a criminal case should be filed, then and only then can a watchlist order (a hold departure order comes later) be issued by the Bureau of Immigration. If you have not been charged criminally, then you cannot be prevented from leaving the country.

Thank you for your advice doc, just one last question and forgive me for being stubborn. When is an action considered fraudulent? I tried to research the definition of estafa & my nose just bled with all the legal goobledegook about Estafa, The Bouncing Check Law & Jurisprudence. I do understand most, if not some of it, but I could not see the part where they define what actions are fraudulent.

In my case, I didnt reply to the collection agency with their court summons, nor was I able to contact the bank when I stopped paying. I did receive several letters from the collection agency, but I dont recall if there was a mention of it being filed as an estafa case. I will still settle all of my debts once I return there, I'm just making sure that I don't get myself into deeper crap than what I have already found myself into.

You can just call HSBC's credit card collections department and they will refer you to the third party collection agent who has been assigned to your card.

Thanks for the advice Doc, so it will still be done via the third party collector and not the bank? As per my previous question, and the other person before me, is there a hold departure order for such instances (having court summons and stuff)? I wouldnt want to jeopardize my payments and not be able to go back to where I am currently earning my living if I was to be prevented to leave.

I would like to thank all of those who have posted their own experiences having credit card loans and how they have redeem themselves from this slump. It is indeed true that it is one of the most humiliating experiences one can go thru in life....to be sent all those legal letters from the collectors and your inability to pay what you owe the bank for whatever reason. It may be due to financial immaturity, a happy-go-lucky attitude or something else, but at the end of the day, you owe what you owe.

I myself am still in a credit card situation back there in Pinas. I had an HSBC card which just ballooned out of proportion as I relied on it heavily when I was having financial problems. A mere 20k debt about 3-4 years ago skyrocketed to i think near 100++k before I left there a year ago. A part of me wants to escape from this responsibility simply because it was really humiliating for me. That debt grew bigger as there were times when I would transition from one job to the other, focusing on what was essential then, the basic necessities of the family instead of the accumulated debt. Payment was simply very difficult if I decided to do it back then, hence I was powerless, helpless and just ashamed to even pick up the phone and call the bank to tell them the reason why I couldn't pay.

I seldom post here in MTC, but I have been a member for quite some time now and have been an avid observer from the sidelines. I came across this thread as I am about to have a vacation there in a couple of months time. On top of that, I do have plans to buy a house within a year or so, but with what I got myself into I think it will still take some time for that to happen.

As the previous poster asked, " Is there some sort of Hold Departure Order for these types of cases? especially when cases have already been filed in court by the collector?"

I have no plans of running away from that debt and I am planning to get in touch with the bank directly as soon as I get home so I can immediately repair that damage that I have done to my credit rating. I now have the capacity to pay that amount, though not in full, in significant installments.

For those of you who have HSBC cards, do you have contact numbers that I could get in touch with to arrange a settlement/agreement to pay my credit?

card balance?

Again, I thank everyone who shared their experiences and advice, this really motivated me to settle this once and for all. I have still several years of work ahead of me outside of Pinas, and one day I would want to have my own property back there, a car and just basically back home when I can fully assure myself that I am financially sound.

Mabuhay kayong lahat and maraming salamat!