Frequently Asked Questions (FAQ) on the Implementation of Section 4 (uu) of RA 11494 or the “Bayanihan to Recover As One Act” (BARO Act)
1. How will the mandatory one-time 60-day grace period of the BARO Act be applied?
RCBC Bankard shall be implementing a mandatory one-time 60-day grace period for cardholders whose account status are current, existing and with outstanding balance as of September 15 (“Qualified Cardholders”). Qualified cardholders may skip paying their due dates falling within September 15 to November 15, 2020. During the grace period, the account will not incur interest on interest, penalties, fees, or other charges in relation to loans availed.
Qualified cardholders who would like to avail of the grace period may simply skip paying on the covered due date. For example: If the statement due date falls on September 20, a non-payment on September 20 shall be interpreted that the cardholder will avail of the one-time 60-day grace period. The next due date that the cardholder needs to pay will be on November 19, 2020.
On the other hand, for qualified cardholders who have already paid for the covered due date prior to this announcement, the 60-day grace period will apply on the succeeding due date. For example: If the succeeding statement due date falls on October 2, a non-payment on October 2 shall be interpreted that the cardholder will avail of the one-time 60-day grace period. The next due date that the cardholder needs to pay will be on December 1, 2020.
2. Can the cardholder opt to apply the one-time, 60-day mandatory grace period to any of statement dues falling on or before December 31, 2020?
For qualified cardholders who would like to avail of the grace period outside of September 15 to November 15, 2020 but not to extend beyond December 31, 2020, please inform RCBC Bankard at least 5 calendar days before the intended statement due date by calling RCBC Bankard Customer Service at 8888-1888. This option is only allowed for qualified cardholders who have paid at least the minimum amount due but less than the total amount due during the covered due dates.
For example, if the cardholder has paid at least the minimum amount due but less than the full amount on the statement due dates which fall on September 20, 2020 and October 20, 2020 but would like to avail of the grace period on the statement due date on November 20, 2020 the cardholder should call and inform RCBC Bankard Customer Service on or before November 15, 2020. The next due date that the cardholder needs to pay will be on January 20, 2021.
3. How will fees, interest, charges be applied during the mandatory grace period?
During the mandatory one-time 60-day grace period, statement balance with principal and/or interest falling due during the grace period will not incur interest on interest, penalties, late payment fees, or other charges related to loans extended.
For cardholders who are considered as Revolvers (cardholders who did not pay in full prior to the grace period), any unpaid outstanding balance during the grace period will continue to incur interest based on the Terms and Conditions Governing The Issuance And Use Of RCBC Bankard Credit Cards.
For cardholders who are considered as Transactors (cardholders who paid in full), full interest will be reversed if they pay the total outstanding balance in full on or before the first payment due date after the grace period.
4. How will the mandatory 60-day grace period apply to YourCash accounts?
Cardholders with qualified YourCash accounts may avail of the grace period by skipping the payment for their monthly amortizations due on the covered due dates. By skipping the payment, the cardholder is deemed to be availing of the grace period. The YourCash installment term will be extended by 60 days. Late fees and interest on interest will be reversed. Accrued interest will be charged and posted on the statement following the grace period.
5. Can the cardholder opt not to apply the 60-day mandatory grace period to any of the statement balance falling due on or before December 31, 2020?
Yes, cardholders may choose not to avail of the mandatory grace period and pay their statement balance as they fall due.
Specific to YourCash accounts, cardholders can continue to settle their monthly amortizations based on the original amortization schedule in order to forego interest accrual.
6. Are accounts covered by post-dated checks, auto debit arrangement (ADA) covered by the BARO Act?
For cardholders who previously issued post-dated check or have ADA arrangements and would like to avail of the 60-day grace period, cardholders should inform RCBC Bankard Customer Service at least 5 calendar days before the scheduled ADA arrangement or the indicated check payment date. If no advice is received, RCBC Bankard shall proceed with the scheduled processing of the payment.
7. Are all cardholders qualified to avail of the 60-day grace period under the BARO Act?
No, the BARO Act only applies to cardholders who are current, existing and outstanding as of the effectivity date of the law (September 15, 2020). Qualified cardholders are those who are in good credit standing, whose card/account is current and not past due and with outstanding balance as of Sept 15. Qualified cardholders will also receive notifications via SMS and email. Cardholders with no outstanding balance as of September 15 as well as accounts approved beyond September 15 are not qualified under the BARO Act.
8. For cardholders with multiple cards, if one of the cards is past due, will the BARO Act still apply to the other cards of said cardholders?
Yes, the BARO Act can still apply to the current, existing and outstanding card/s of the cardholder as of 15 September 2020. The past due card/account will not be covered by the mandatory grace period.
9. Does the BARO Act apply restructured cards/accounts?
Cards/accounts that were restructured before September 15, 2020 shall be covered by the BARO Act if such accounts/cards are current as of September 15, 2020.
10. What does the cardholder expect to see in the Statement of Account for the qualified card/account?
The cardholder will continue to see his Minimum Amount Due as computed based on the statement balance. If the qualified cardholder would like to avail of the grace period, he simply needs to skip paying for the covered due date. In the succeeding statement, the cardholder should see a debit and credit transaction which reflects the application of a grace period, late payment fee reversal, and interest on interest reversal. For Transactors, provided that the cardholder pays in full on the first due date after the grace period, the full accrued interest reversal will be shown in the statement after the full payment.