1) The issue in plain terms

An “annual fee” is a recurring charge imposed by a credit card issuer for maintaining the card account (or for access to a tier of benefits). Disputes arise when:

the cardholder never applied for the card (unsolicited card / identity misuse);
the card was applied for, but the cardholder never consented to an annual fee (or to a change introducing one);
the issuer promised the fee would be waived (“lifetime free,” “no annual fee,” “waived annually upon spend,” etc.) but later charged it;
the cardholder cancelled or tried to cancel, yet fees continued;
the issuer reissued, upgraded, or converted the card and began charging a fee without clear acceptance.

In the Philippine setting, the dispute is not just “customer service.” It can involve consumer protection, contract principles, data privacy/identity protection, and regulatory rules on fair dealing and disclosure by financial service providers.

2) Core legal frameworks that usually matter

A. Contract and obligations (Civil Code principles)

Credit card relationships are contractual. Two core principles drive “I did not agree” disputes:

Consent is essential to a binding contract. If you did not consent to a fee or to a fee increase/change, you challenge enforceability.
A party cannot unilaterally impose material terms without proper notice and acceptance, especially if the term substantially affects cost.

In practice, issuers rely on:

the original application form and disclosures;
the “Cardholder Agreement / Terms and Conditions (T&C)”;
proof of receipt of the card and activation/use; and
notices of amendments (mail, email, SMS, app, billing inserts).

Your side typically relies on:

lack of application/authorization;
absence of clear disclosure of the annual fee amount and conditions at sign-up;
misrepresentation (e.g., “no annual fee” representations);
lack of meaningful notice of changes; or
cancellation effective date and proof.

B. Consumer protection and fair dealing (Consumer Act of the Philippines)

The Consumer Act supports the idea that consumers are entitled to truthful information, fair dealing, and protection against deceptive or unconscionable practices. Even though credit is regulated heavily by banking regulators, consumer protection principles still reinforce disputes involving misleading marketing (e.g., “FREE” but not actually free) or unfair collection.

C. Financial consumer protection (Bangko Sentral ng Pilipinas regulatory regime)

The BSP’s financial consumer protection framework emphasizes:

transparency of pricing/fees,
fair treatment,
effective complaint handling, and
prohibition of unfair/deceptive practices.

For annual-fee disputes, the practical effect is: issuers are expected to clearly disclose fees and to handle disputes properly, with escalation paths and documentation.

D. Data Privacy Act (identity misuse / unsolicited accounts)

If the card was issued without your application/authorization or due to identity misuse, the dispute can implicate data privacy and security obligations. It also strengthens your position to demand:

investigation of how your data was used,
correction of records,
cessation of processing for an unauthorized account, and
coordination with fraud controls.

E. Truth in Lending (for credit disclosures)

Philippine “truth in lending” policy is aimed at ensuring borrowers receive clear disclosures of credit cost. Annual fees are part of cost of maintaining access to credit, and disputes often revolve around whether the fee was properly disclosed and agreed to.

3) What “consent” looks like for annual fees (and how issuers prove it)

Typical issuer evidence

Signed/recorded application or digital consent logs.
T&C document showing annual fee amount and when charged.
Proof that you activated and used the card (activation log, first transaction).
Billing statements reflecting the fee and prior payments (argument: you accepted by paying).
Notices of amendment (email/SMS/app notification history).

Typical consumer rebuttals

No application, no signature, no OTP consent, no e-sign logs.
Card was received but never activated/used; merely receiving does not always equal accepting all charges, especially if the fee is inconsistent with what was offered.
Marketing promised “no annual fee” / “lifetime waived” (screenshots, email, agent chat, brochure).
You cancelled before the fee posted or within the period where cancellation should avoid the fee.
The issuer failed to provide clear prior notice of changes, or the notice was not reasonably delivered to you.

4) Common scenarios and the strongest arguments in each

Scenario 1: You never applied for the card (unsolicited issuance / identity misuse)

Strong points:

No consent → no contract → no enforceable annual fee.
Demand proof of application and consent (signature, recorded call, IP/OTP, e-sign trail).
Demand immediate account closure, reversal of all fees/charges, and correction of any adverse credit reporting.
If there are collection calls, demand written validation and stop improper collection communications.

Key evidence to gather:

Written statement that you did not apply.
Any proof you were not at the place/time of “application.”
Copies of IDs you use (to show mismatch if forged).
Communications from bank/collections.

Tactical note: If the issuer cannot produce credible consent evidence, many disputes resolve in reversal and closure.

Scenario 2: You applied, but the fee was not disclosed clearly or was misrepresented

This is often a “disclosure + misrepresentation” dispute.

Strong points:

Fee is a material term; if the bank’s marketing/agent representation induced you to apply (“no annual fee”), you argue you did not consent to a fee or the bank must honor the waiver representation.
If the disclosure is buried, inconsistent, or missing, you argue lack of informed consent.

Evidence:

Ads, screenshots, product page printouts, email offers, chat transcripts, agent messages.
The exact card variant and promo mechanics (some waivers are conditional).

Typical issuer defenses:

“Subject to T&C” / “promo ended” / “spend requirement not met.” Your response is to pin down: What was the exact offer at time of application? Did they communicate the conditions clearly and did you receive them?

Scenario 3: “Free for life” or “No annual fee” was promised, but fee posted later

Strong points:

Enforce the representation; treat the fee as an erroneous charge.
Demand proof that you agreed to a later change removing the waiver or converting the card to a different product with a fee.

Evidence:

Original offer proof.
Timeline: approval date, activation date, first statement date, first fee posting date.
Any “upgrade” or “conversion” notice.

Scenario 4: Card upgrade/replacement/conversion triggered a fee you did not accept

Sometimes banks convert cards (e.g., from one network/tier to another) or “upgrade” for benefits.

Strong points:

A product change that adds a fee is material; you can challenge whether you accepted the conversion.
If you did not request it and did not accept, request reversion or cancellation and reversal of the fee.

Evidence:

Any notices, and your response (or lack of receipt).
Proof you did not request the upgrade.
Proof you did not activate or use the upgraded card.

Scenario 5: You cancelled, but annual fee was still billed

Strong points:

If cancellation was effective before the fee posting date (or within a reasonable cycle), the fee should not be charged.
Even if posted, you can demand reversal as a billing error depending on timing and bank policy, especially if cancellation was requested before accrual.

Evidence:

Cancellation reference number, email confirmation, call log, chat transcript.
Date you requested cancellation and date bank confirmed closure.
Final statement.

Scenario 6: You didn’t use the card; can they still charge the annual fee?

Often yes if the fee is for account maintenance and the contract provides it, but your dispute becomes stronger if:

the card was never activated;
you were told it would be free; or
you tried to cancel promptly and the issuer delayed closure.

5) The practical dispute path (what to do, step by step)

Step 1: Freeze the narrative and gather proof

Before calling again, assemble:

Card product name and last 4 digits.
Fee amount and posting date from statement.
Promo/offer proof (screenshots, emails, brochures).
Your timeline: application (if any), delivery, activation, usage, cancellation attempt.
Communications: reference numbers, names (if available), dates/times.

Step 2: Make a written dispute to the issuer (not just a call)

A written dispute is crucial because it:

fixes your position and timeline;
forces the issuer to respond on record; and
creates evidence for escalation.

Include:

statement that you did not agree to the annual fee (or did not apply for the card);
what you want: reversal/waiver, and if relevant account cancellation and written confirmation;
request for documents: application record, T&C version applicable at sign-up, evidence of notice/acceptance for changes;
request that collection activity be paused while dispute is under investigation (especially if the amount is solely the annual fee).

Step 3: Keep paying only what is undisputed (if applicable)

If you have legitimate purchases and you are only disputing the annual fee:

consider paying the undisputed amount to avoid interest/penalties on those items,
and explicitly state in writing that payment is “under protest” / “without prejudice” and not an admission that the annual fee is valid.

If the entire account is unauthorized/fraudulent:

do not pay to “make it go away” without documentation—payment can later be framed as acceptance.
focus on demanding proof of authorization and immediate closure.

Step 4: Escalate within the issuer

Ask to escalate to:

the bank’s customer assistance group/complaints unit,
fraud department (if unauthorized),
or a supervisor empowered to approve reversals.

Keep everything in writing, even if you call: after each call, send an email summarizing what was agreed and include the reference number.

Step 5: Escalate to regulators if the issuer refuses or stonewalls

In the Philippines, escalation typically goes to the BSP’s consumer assistance channels (or the issuer’s regulator, depending on the institution). Your escalation packet should include:

your written complaint to the issuer,
the issuer’s reply (or lack of reply),
statements showing the fee,
and your evidence of non-consent/misrepresentation/cancellation.

What regulators tend to do well: require a structured response, push for corrective action, and enforce complaint-handling standards.

Step 6: Consider formal legal remedies if damages are real and documented

If the dispute leads to:

wrongful collection harassment,
adverse credit reporting,
identity theft consequences,
or significant financial loss, you may consider:
a demand letter,
civil action for damages under applicable laws,
or other remedies depending on facts.

For many annual-fee disputes, the fastest outcome is still administrative/complaint resolution rather than court.

6) How to frame your dispute: the most effective legal theories

A. No consent / no contract (strongest when unauthorized)

Use when:

you never applied;
signature/OTP/e-sign is not yours;
card was activated/used by someone else.

What you demand:

document production and authentication,
reversal of all charges,
closure and record correction.

B. Misrepresentation / deceptive marketing (strongest when “no annual fee” was promised)

Use when:

a bank agent or advertisement promised waiver/free but the billing contradicts it.

What you demand:

honor the representation (waiver),
investigate agent conduct,
and confirm future fee treatment.

C. Lack of clear disclosure / unfair contract term

Use when:

annual fee was not clearly disclosed at application,
or the issuer added/increased fee without proper notice and acceptance.

What you demand:

reversal and corrected disclosures,
proof of notice and acceptance.

D. Billing error + good faith resolution (pragmatic approach)

Even when the contract technically allows a fee, you can still press a “billing error / waiver” angle if:

you’re a long-time client,
you didn’t use the card,
you attempted cancellation,
or the bank’s servicing created confusion.

Banks often waive annual fees as a retention measure, even if they deny legal fault.

7) The evidence that wins disputes

High-value evidence

Original offer documentation (email, screenshot, brochure).
Application record (or proof there was none).
Proof of non-activation (if applicable).
Cancellation proof (reference numbers, confirmation emails).
Issuer’s written responses.
Timeline document (one page, dated events).
Statement pages showing fee posting and any penalties/interest triggered by it.

Medium-value evidence

Agent names (helpful but often hard to verify).
Call logs without recordings.

Low-value evidence

Purely verbal claims with no backup.

8) Key pitfalls (and how to avoid them)

Paying the fee without reservation It can be argued as acceptance. If you must pay to stop compounding charges, state clearly it is “under protest” and you continue to dispute.
Letting the dispute drag while late fees accumulate If you have undisputed balances, pay them. If the only balance is the disputed fee, insist on pausing collections during investigation and escalate quickly if they refuse.
Cancelling by stopping use only Non-use is not cancellation. Always request closure and obtain proof.
Assuming “waived” means “always waived” Many waivers are conditional. Your dispute should focus on whether conditions were disclosed and whether you truly agreed to them.
Not demanding documents Put the burden on the issuer to show consent, disclosures, and notices.
Ignoring credit reporting consequences If delinquency is reported due solely to a disputed annual fee, demand correction in writing and include it in escalations.

9) Recommended structure of a complaint letter (Philippine context)

Essential parts

Your full name, address, contact details.
Card type and last 4 digits; account/reference number.
Clear statement of dispute: “I did not agree to this annual fee” (or “I did not apply for this card”).
Amount, date posted, statement cycle.
Factual timeline (bullet points).
Legal/rights framing (consent, disclosure, misrepresentation, fair dealing).
Requested actions:
1. reverse/waive the annual fee and related interest/penalties,
2. confirm in writing the annual fee arrangement going forward,
3. if desired, cancel the card and confirm closure date,
4. provide copies of application/consent records, T&C version, and notice logs,
5. pause collection while dispute is pending,
6. correct any negative credit reporting related to the disputed fee.
Attachments list.

Tone and posture

Professional, factual, firm.
Avoid emotional language; emphasize documentation and timelines.

10) When the issuer says “It’s in the Terms & Conditions”

This is common. Your counter depends on facts:

If you never consented to the contract (unauthorized issuance), “T&C” is irrelevant until they prove you agreed to them.
If you applied but the offer contradicted the T&C, raise misrepresentation and the duty of clear disclosure; demand the exact T&C version you allegedly accepted at sign-up.
If the T&C was amended later, demand proof of notice and proof you accepted the amended fee (not just that they posted a notice somewhere).
If you cancelled and they charged anyway, demand the closure timeline and their fee accrual basis.

11) Settlement outcomes you can realistically expect

Depending on evidence strength and bank policies, outcomes typically include:

full reversal of annual fee;
reversal plus waiver for the next year;
waiver conditioned on minimum spend or account standing;
conversion to a no-annual-fee product (if offered);
account closure with fee reversal;
in unauthorized cases: closure + reversal + confirmation of no liability + correction of records.

12) Special notes on collections and harassment

If collection begins while the only unpaid balance is a disputed annual fee:

insist in writing that the amount is disputed and under investigation;
request that the issuer and any collection agency restrict communications to lawful, reasonable contact and avoid harassment;
preserve call logs, messages, and any threatening language for escalation.

If a third-party collector is involved:

demand validation that they are collecting on behalf of the issuer,
and direct the issuer to manage the dispute directly.

13) Identity-related annual-fee disputes: what to do beyond the issuer

If you believe the account is fraudulent:

document everything immediately;
consider reporting the identity misuse to appropriate authorities and requesting records (your goal is a paper trail);
consider a Data Privacy Act–based request to the issuer for information on how your data was obtained/processed and for correction/erasure of unauthorized records, as applicable.

14) “Write all there is to know” condensed checklist

If the card/fee is unauthorized

Dispute in writing: no application, no consent.
Demand proof: application/OTP/e-sign/recorded consent.
Demand reversal + closure + correction of records + stop collections.
Escalate to BSP if unresolved.

If the card was offered as “no annual fee”

Produce the offer proof.
Dispute as misrepresentation / failure to honor promo.
Demand waiver and written confirmation going forward.
Escalate if issuer denies despite evidence.

If the fee was introduced/raised later

Demand proof of notice and acceptance.
Challenge unilateral changes lacking meaningful consent.
Consider cancellation with reversal request if you would not have kept the card with the fee.

If you already cancelled

Provide cancellation proof; demand fee reversal and confirm closure date.
Demand reversal of penalties and interest triggered by the fee.

Always

Keep everything in writing and organize a timeline.
Pay undisputed balances to avoid compounding costs (state “under protest” if needed).
Escalate promptly if the issuer is unresponsive.

15) Sample dispute language (adaptable)

A. Annual fee you did not agree to

I am formally disputing the annual fee of PHP ____ posted on ____ for my credit card ending in ____. I did not agree to this annual fee / this fee is inconsistent with the offer under which I applied. Please reverse the annual fee and any related interest or penalties, and provide written confirmation of the annual-fee arrangement for this account. Please also provide copies of (1) the application/consent record, (2) the T&C version applicable at approval/activation, and (3) any notice and proof of acceptance for amendments affecting annual fees. While this dispute is pending, please place collection activity on hold for the disputed amount.

B. Card issued without your application

I did not apply for or authorize the opening of this credit card account. I dispute all charges including any annual fee and demand immediate closure of the account, reversal of all charges, and written confirmation that I have no liability. Please provide the application and all records showing my alleged consent (signature, recorded call, OTP/e-sign logs, delivery and activation records). Please correct any internal or external records that may reflect delinquency arising from this unauthorized account and ensure that no collection action proceeds while the investigation is ongoing.

C. Cancellation before fee

I requested cancellation on ____ (ref no. ____), and the annual fee of PHP ____ posted on ____ should not have been charged. Please reverse the fee and confirm in writing the account closure effective date and that no further charges will be billed.

16) Bottom line

In the Philippines, disputing an annual fee you did not agree to is fundamentally a consent and disclosure problem: your goal is to lock down the facts, force the issuer to produce proof of agreement and proper notice, and use consumer and financial regulatory standards on transparency and fair treatment to obtain reversal, waiver, correction of records, and cessation of collection on disputed amounts. The more you can document the original offer, the absence of consent, and your timeline (especially cancellation or non-activation), the stronger—and faster—your dispute typically becomes.