The Department of Trade and Industry (DTI) has tossed the issue of overcharging on credit cardholders by banks to the Bangko Sentral ng Pilipinas (BSP) saying that this particular consumer issue does not fall under its mandate.

“That is a BSP issue and even if there is a consumer complaint on that we still have to refer that to the BSP because it is the proper authority,” said Trade and Industry undersecretary for consumer welfare Zenaida C. Maglaya.

Earlier, the Supreme Court has ruled that charging an interest rate of more than two percent per month or 24 percent per annum to credit cardholders is excessive and unconscionable.

The decision was contained in the recent ruling by the high court on a case involving petitioner Ileana Macalinao, an approved cardholder of BPI Mastercard, one of the credit card facilities of respondent Bank of the Philippine Islands (BPI).

The court, which finds Macalinao’s petition partly meritorious, has upheld the lower court decision and modified a Court of Appeals decision.

In its ruling, the SC said, “We are of the opinion that the interest rate and penalty charge of 3% per month should be equitably reduced to 2% per month or 24% per annum.”

While the Supreme Court acknowledged the fact that in the Terms and Conditions Governing the Issuance and Use of the BPI Credit Card there was a stipulation on the 3% interest rate it also noted that, “This is not the first time that this Court has considered the interest rate of 36% per annum as excessive and unconscionable.”

The Court also noted that while the Central Bank Circular No. 905-82, which took effect on January 1, 1983, effectively removed the ceiling on interest rates for both secured and unsecured loans, regardless of maturity, “nothing in the circular could possibly be read as granting carte blanche authority to lenders to raise interest rates to levels which would either enslave their borrowers or lead to a hemorrhaging of their assets.”

The closest that DTI acted on credit card issue was on the surcharges imposed by retailers on purchases being paid using credit cards.

This practice by some retailers violates the Price Act, which states that there must be a one price tag only. This means that payments either in cash or credit cards must have the same price tag so as not to penalize the credit card users.

“They cannot pass on surcharges to consumers,” Maglaya said.

The DTI, however, has acted on consumer complaints against the no-refund policy of a budget airline although airlines and even their fare promotions do not also fall under the DTI jurisdiction, but with the Civil Aeronautics Board. Maglaya took it up with the CAB, which she said already suspended the airline’s no-refund policy on promo fares.

Maglaya said she is going to meet again with CAB for an update of its policy review. The local budget airline, however, has not headed on the supposed suspension by CAB on the no-refund policy.