So, we make money mistakes. Big deal. What matters is what we do to recover and learn from them.
One MoneySmart reader, I will call him Danny, made a credit card mistake in the past enough to put him on banks’ negative list. The misdeed technically was his brother’s, who used his credit card to buy a computer and promised to pay him monthly.
You probably guessed what came next. His brother failed to pay, and the P18,000 debt ballooned to P30,000 within a year. Danny paid everything by 2004, but by that time, his name was already hot listed.
Fast forward four years. Now, Danny feels that after 11 years of financial stability and having paid his debt in full, he deserves the benefits of a credit card. He applied with HSBC, Bank of the Philippine Islands and Banco De Oro but got rejected. He sent an email to the Bangko Sentral ng Pilipinas’ Financial and Consumer Affairs Group, asking about what he can do to clear his name.
With the help of Bangko Sentral Managing Director Johnny Noe Ravalo and FCAG head Elvira Ditching-Lorico, Danny’s case was forwarded to the banks concerned. Turned out that the bank that issued his first credit card failed to update his records even after full payment, that is why his name—up until early November this year—was still on the negative list.
But Danny feels that all’s well that ends well. On November 5, he got his newly minted credit card. He got his name cleared and I’m sure that felt good. Now, don’t go burning that card, Danny, ok? Enjoy your new credit, but be responsible :-).
November 13th, 2008 at 11:59 am
so this process of clearing one’s name will change when the credit information law is implemented, right?