Partial payments did not stop a credit-card balance from reaching PHP141,518.34

A borrower used a BPI credit card and later fell behind. The statements reproduced in the court record began with PHP94,843.70 in October 2002. They also showed payments of PHP15,000 and PHP18,000, yet finance charges and penalties continued to appear. In January 2004, the bank demanded PHP141,518.34. The unpaid credit card debt then became a court case. BPI relied on card terms that imposed 3% monthly interest and another 3% monthly penalty. The borrower disputed the rate and the amount used for the calculation. ## What the Supreme Court changed The Supreme Court found the 3% monthly interest and 3% monthly penalty treatment unconscionable in the circumstances. It reduced each to 1% per month and used the PHP94,843.70 beginning balance for the recomputation. The final order required PHP112,309.52, plus combined interest and penalty of 2% per month from January 5, 2004, PHP10,000 in attorney's fees, and costs. The case shows why partial payments do not by themselves explain the final amount on an unpaid credit card account. The court record ends with the payment order; it does not record whether the judgment amount was later satisfied.