Manuel C. Acol v. Philippine Commercial Credit Card Incorporated

Summary

Manuel Acol lost his Bankard credit card and immediately reported it to Philippine Commercial Credit Card Inc. on April 19, 1987, followed by written confirmation. Despite prompt notification, unauthorized purchases worth P76,067.28 were made on April 19-20, 1987. Although the company's investigation confirmed Acol did not make these purchases, it demanded payment based on a contract provision requiring cardholder liability until 'reasonable time' after written notice and inclusion in cancellation bulletin. The RTC dismissed the collection case, but the Court of Appeals reversed, holding Acol liable. The Supreme Court granted Acol's petition, striking down the contract provision as contrary to public policy under Article 1306 of the Civil Code. Following the Ermitaño precedent, the Court ruled that prompt notice should relieve cardholders of liability for unauthorized charges, as the contested provision unfairly puts cardholders at the mercy of credit card companies.