Congressman files bill to prevent credit card companies from imposing hidden charges
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Newsbytes.ph reports that TUCP party-list representative Raymond Mendoza has filed a bill "prohibiting credit card companies, banks, and similar institutions from imposing hidden penalties or costs on purchases and cash advances made by their clients."
The report explained that House Bill 2551, "interest rates imposed by credit card companies on purchases and cash advances made through such facility shall in no case be higher than 1 percent per month or 12 percent per annum, without compounding." Aside from this, surcharges or penalties for late payments shall likewise "be limited to a ceiling of 1 percent per month."
Mendoza said he filed the bill "to protect the consuming public from the exorbitant rates being imposed by the credit card companies and banks." Based on the lawmaker's computation, the 2.5 to 3.5 percent cumulative non-compounded interest rates charged by credit card companies per month run up to 30 to 42 percent per year, which he said is "more than what '5-6′ operators charge."
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