Press Release
February 2, 2021

Gatchalian urges BSP to investigate banks violating debt moratorium

Expressing concern over the reported non-compliance of some banks to the debt moratorium, Senator Win Gatchalian is calling on the Bangko Sentral ng Pilipinas (BSP) to investigate erring banks and make sure that they comply with the provisions under the Bayanihan 1 and 2 laws.

As the country's regulator of the banking industry, the BSP is mandated to ensure that banks and credit card issuers strictly follow the laws and protect the consumers' interests, the senator said.

"BSP should exercise its supervisory and regulatory powers over these erring banks by enforcing the provisions of the Bayanihan Laws. A kid gloves treatment will do no good at this time. Everyone is having a hard time financially and they should do their share as dictated upon by the law," said Gatchalian.

The Vice Chairman of the Senate Committee on Banks, Financial Institutions and Currencies, took note of reports about the mounting consumer credit card complaints received by the BSP.

This prompted the BSP to issue last January 14 a circular letter ordering all banks to strictly comply with the prevailing regulations on credit cards and financial consumer protection as well as the Implementing Rules and Regulations (IRR) of the Bayanihan to Recover as One Act or Republic Act No. 11494.

Section 4 (uu) of the Bayanihan 2 requires banks to implement a non-extendible mandatory one-time 60-day grace period to all loans of individuals and entities that are existing, current and outstanding falling due on or before December 31, 2020.

"We anticipated that some loans would accrue interests because the party concerned has defaulted and that's precisely the reason why we introduced these provisions in the laws, to protect the consumers amid the global health pandemic," said Gatchalian.

"Huwag naman po sana tayong maging ganid para lang lumaki ang kita o tubo sa mga pinautang. Hindi tama na manantala sa mga taong gipit na lalo na kung nakasaad na ito sa batas. Dapat pairalin natin ang bayanihan sa gitna ng pandemya," the senator said.

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