Critics of the congressional proposal to cap interest rates and credit card charges claims will have profound negative influences the industry.  The credit card companies suggest such proposals will result in the possible closure of all credit card businesses in the country.   

Both the Credit Card Association of the Philippines (CCAP) and the Bankers Association of the Philippines (BAP) submitted papers to the House committee that suggested the absolute cap on credit card companies may mean that these businesses will no longer be viable. 

President of BAP, Aurelio R. Montinola III claims setting a maximum interest rate would force credit card companies to close their operations.  He also stressed the benefits consumers get when using credit cards for daily purchases or high-priced items.  He added, "If the situation specifically requires cash payment, instant cash is available to credit card holders through cash advances." 

CCAP president, Simon A. Calasanz said, "A credit card company is first and foremost a business. As such, it has to make a significant investment on infrastructure, systems, manpower and the like before it can realize a profit."  Calasanz believes that limiting fees and interest rates will prolong the time needed to recover investments in new technology and developments.  "At worst, capping interest rates will make the investment unrecoverable. This situation will eventually lead the credit card company to cease their operations and close shop," he added.

"It takes years before a credit card company recovers its investments through the interest rates that it places on the credit card."

Calasanz also believes the rulings will have negative impacts on consumers as well.  He explained, "The consumers who use cards for convenience like international spending, zero interest installment plans, and online transactions will be deprived of these facilities and benefits," Calasanz further said.  "Should card companies cease to grant credit, the 30 to 35 percent of consumer spending in retail outlets is automatically put in jeopardy," he said.