Kiko Pangilinan: “Goodbye credit card”

Former Senator Francis ‘Kiko’ Pangilinan reacted to a decision made by the Bangko Sentral ng Pilipinas (BSP) to increase the interest cap on credit card transactions to 3% per month.

The 3% a month increase is equivalent to 36 percent a year.

Pangilinan shared his thoughts about the new directives by tweeting the following:

“Hello 36 percent, Goodbye credit card.”

Hello 36 percent,
Goodbye credit card.

*BSP raises interest cap on credit card transactions to 3% PER month*
The Bangko Sentral ng Pilipinas has raised the interest cap on credit card transactions to 3 percent a month or 36 percent a year.https://t.co/eSzIaRRG4Q pic.twitter.com/d5tku2jOnv

— Kiko Pangilinan (@kikopangilinan) January 24, 2023

Netizens on the other hand has the following reactions:

– “I hope they can only issue the 3% if the holder can’t pay the full amount in installment. Sample I paid for tuition fee for installment. Then. I have that divided into 6mos. If I didn’t pay the equivalent amount per month then I’ll be charged 3%. Than paying for tuition fee then”

– “Banks are raising interest rates now dahil na din mataas ang inflation natin. BSP is encouraging people to save than spend. Aside sa macroeconomic factors, more money in circulation devalues Ph currency.”

– “Credit cards can be your best friend or—worst enemy; pay in full and use them responsibly.”

– “Kind of unfair if the legal rare of interest for court judgments are just at 12% per annum. Before, tolerable at 24%, bordering on usurious interest, but now, at 36%??? That’s too much. Time to protest high interest rates and other bank charges in the guise of convenience.

– “Oh no, ang daming bayaran pag may interest charge sa credit cards. This government is getting bankrupted in a corruption mess.”

(Photo source: Instagram – @kiko.pangilinan)