CCAP marks 25th year of empowering consumers, promoting credit responsibility

Credit cards have become powerful and convenient tools to manage one’s finances if used responsibly. The Credit Card Association of the Philippines (CCAP), now on its 25th year, remains upbeat as far as the credit card industry and consumer awareness is concerned.

With "Financial Empowerment and Credit Responsibility" as its theme, this year’s celebration is a tribute to the industry’s significant growth and the maturing Filipino cardholder market.

According to Manuel Santiago, CCAP chairman, "empowerment and responsibility go hand in hand. We believe that for people to be able to get the full value and convenience of using a credit card, they need to be equally responsible for it."

Rolando Tanchanco, CCAP president shares that "credit cards are very convenient but when misused can lead to unmanageable debt. As we promote our products and services, we also educate the consumers on the wise use of credit."

But just what is credit responsibility? Basically, it entails consumer maturity with regards to spending behavior and credit card use. A responsible cardholder borrows within one’s means and pays when payment is due. Moreover, credit responsibility also means being wary of possible fraudulent acts that can be committed against him. The public must realize that the cardholder also bears responsibility as the credit card company to protect the cardholder against theft and fraud. This is why aside from educating consumers on the advantages of maintaining good credit and providing them with security information against theft and fraud, CCAP is also working closely with the proper agencies, especially with the Bangko Sentral ng Pilipinas, for consumer protection.

CCAP’s effort to promote credit responsibility has gained ground with the market now realizing the real value of owning and managing a credit card. More people have started using their cards for convenience than just an easy source of cash that can lead to indiscriminate spending. People have also started to limit their cards to what is only manageable for them, unlike in the past.

With 15 card-issuing member banks and over 50 credit card products in the market today, the competition in the industry has definitely been good for the cardholders. "Rewards programs are getting more and more generous and discounts for card purchases have become a common practice," according to Tanchanco.

And with an average 15-20 percent annual growth in card usage and a 1.6 percentage drop in total plastic-based lending bad loans ratio to total credit card loan exposure, the Philippine market can look forward to an even more robust credit card industry.