LAWS THAT COLLECTORS MUST KNOW AND

UNDERSTAND WHEN COLLECTING

1. Libel or Defamation (Art.353,RPC)
2. Slander or Oral Defamation (Art.358, RPC)
3. Unjust Vexation
4. Incriminating Innocent Person (Art. 363, RPC)
5. Intriguing Against Honor (Art. 364, RPC)
6. Falsification by private individual and use of falsified
documents (Art.172, RPC)
❖ Ethical Standards for Creditman/Collectors
- Act with justice,
- give everyone his due,
- and observe honesty and good faith.
❖ BSPs Collection Ethical Rules
- Unfair Collection Practice Sec. 320.14
❖ Violation Which are Subject to Sanctions
- The use of threat of violence or another criminal
means to harm the physical person, reputation or
property of any person
- The use of obscenities, insults, or profane language which amounts to
a criminal act or offense under applicable laws;
- Disclosure of the names of consumer or credit card holders who
allegedly refuse to pay debts
❖ Sanctions
- Disqualification of the bank concerned from the credit facilities of the
BSP;
- Prohibition of the bank concerned from the extension of additional
credit accomodation against personal security;
- Penalties and sanction provided under Sec.36 and 37 of the R.A 7653
 THE NEW BOUNCING CHECK LAW
Batas Pambansa-22
Two sets of laws governing bouncing checks:
1. Article 315
2. B.P. No. 22
Similarities:
➔ Under both laws the transaction involves issuance of
checks;
➔ Both laws require “lack off”, “drawn against uncollected
accounts” as an element to constitute violation

Difference:
➔ Under the Revised Penal Code, deceit and damage are
essential elements and must be applied in the information.
Under B.P. No. 22.
● Checks Issuer’s Liability Under Both Laws
- Knowing that the drawer did not have sufficient funds, for
which reason the check was dishonored by the drawee
bank, said endorser is liable for estafa under Art. 315, par
2
● Liability of Bouncing Check Issuer Under Both Laws
1. When the check issued in payment of a pre-existing
obligation, there is no estafa even when there is no fund
at the bank at the time of its issuance.
2. When the checks are issued and intended by the parties
only as promissory notes, there is no estafa even if there
is insufficient funds in the bank to cover the same
Under B.P. No. 22
1. Guaranty check or Memorandum check. Where is check
is issued as part of an agreement to guarantee, secure or
memorandum for the payment of an obligation, whether
pre-existing or not, the drawer is not criminally liable for
either estafa or violation of B.P. No. 22 (Memorandum
Circular No. 4 of the Ministry of Justice, series of Dec. 22,
1981)
2. Stop payment for valid reasons
3. Issued for no value
Effect of Partial Payment with Balance Paid on
Check Which Again Bounced
A. Effect of partial payment
B. Where balance is paid in check but bounced
C. Payment of a bounced check, does not exonerate
the drawer from a criminal liability under B.P. 22