Sen. Chiz Escudero wants to put ceiling on credit card interest rates
Usurious interest rates slapped by credit card companies should be regulated to protect consumers from unconscionable hidden charges, Senator Chiz Escudero said.
In Senate Bill No. 166 (SBN 166), Escudero seeks to put a ceiling on interest rates and surcharges imposed by credit card companies and prohibit hidden charges that further burden plastic card holders.
“While credit cards are deemed as relief for consumers during bad times, woes begin when card companies levy interests and charges which are usually unknown to the users that eventually saddle them with more debts. We want to put a stop to the hidden charges which catch consumers unaware,” Escudero explained.
SBN 166 puts a cap of 1 percent per month or 12 percent per annum on the interest rates that credit card companies c...