Under Philippine law, whether credit card debt “prescribes” (i.e., can no longer be judicially collected) after 10 years depends on what kind of obligation it is, when the cause of action accrued, and whether prescription was interrupted. There is no single automatic “10-year wipeout” for all credit card balances. What follows is a full Philippine-context legal discussion of the rules, exceptions, and practical consequences.

1. Prescription in Philippine Civil Law: The Basics

Prescription of actions means the loss of the right to sue because of the lapse of time. In obligations and contracts, this is governed mainly by the Civil Code of the Philippines (NCC).

Two ideas matter:

The obligation does not disappear by prescription; rather, the right to enforce it in court may be barred.
Prescription runs only against judicial actions. A creditor may still demand payment extrajudicially, but cannot successfully sue if prescription has set in—unless prescription was interrupted or does not apply.

2. What Prescription Period Applies to Credit Card Debt?

2.1. Generally: Credit Card Debt Is Treated as a Contractual Obligation

Credit card use is based on an agreement between cardholder and issuer (bank/financing company). In practice, courts typically classify credit card obligations as arising from a contract—often a written contract, because:

the cardholder signs (physically or electronically) a credit card application or agreement;
the issuer provides written terms and conditions;
monthly billing statements and account records document the obligation.

2.2. The Key Civil Code Provision

Article 1144, Civil Code provides that actions upon:

a written contract,
an obligation created by law,
a judgment

must be brought within ten (10) years from the time the right of action accrues.

So if the credit card obligation is proven as a written contract, the prescriptive period is 10 years.

2.3. When It Might Be 6 Years Instead

Article 1145 states that actions upon an oral contract prescribe in six (6) years.

A debtor could argue the obligation is not a written contract if:

there is no signed application or card agreement presented;
the issuer cannot produce the controlling written instrument;
the claim rests mainly on account statements without a proven written undertaking.

If a court accepts that the obligation is not based on a written contract, then 6 years may apply.

Practical reality: In most modern credit card cases, issuers can show documentary proof, so 10 years is the usual rule—but it is not guaranteed.

3. From When Does the 10-Year (or 6-Year) Period Start?

3.1. Accrual of the Cause of Action

Article 1150: prescription runs from the day the action may be brought.

For credit card debt, that date is typically when the debtor is in default. Default occurs when:

the cardholder fails to pay the minimum amount due or required installment on the due date; and
the obligation becomes demandable under the agreement.

3.2. Is It From the Date of Last Use? Last Statement? Last Payment?

Not automatically. Common reference points:

First missed payment / date of default: usual starting point.
Date the account is accelerated (if the contract has an acceleration clause): if the issuer formally accelerates the debt, prescription may run from acceleration notice.
Date of last payment: important because it may reset or interrupt prescription (see below).

Courts look at the moment the creditor could first sue—not the moment the account opened.

4. Interruption of Prescription: Why “10 Years” Often Becomes Longer

Even if 10 years is the baseline, prescription can be interrupted, and when interrupted the clock resets.

Article 1155: prescription is interrupted by:

filing of an action in court (even if later dismissed without prejudice in some contexts),
a written extrajudicial demand by the creditor,
a written acknowledgment of the debt by the debtor.

4.1. Written Demand Letters

A written demand (often a formal demand letter or collection notice) interrupts prescription. Once properly made, the prescriptive period starts running again from zero.

Key point: it must be written and provable. Banks keep copies and delivery records.

4.2. Acknowledgment or Promise to Pay

If the debtor:

signs a restructuring agreement,
replies admitting the debt,
sends an email/text clearly acknowledging liability,
requests time or proposes settlement in writing,

that can interrupt prescription.

4.3. Partial Payments

A partial payment is typically treated as an implied acknowledgment of the obligation. If it is documented, prescription is interrupted and restarts from the date of payment.

This is why old debts can remain judicially collectible long after the original default.

5. What Happens After Prescription Sets In?

5.1. Creditor Can Still Ask, But Cannot Win a Lawsuit

Once the relevant period lapses without interruption, the creditor’s action is time-barred. If the creditor files suit, the debtor can raise prescription as an affirmative defense.

If the court agrees, the case is dismissed.

5.2. Prescription Is Not Automatic

Courts do not apply prescription on their own. The debtor must plead it. If the debtor fails to raise prescription, it may be deemed waived.

5.3. Natural Obligations

After prescription, the debt becomes a natural obligation (Civil Code concept): payment is no longer enforceable by court, but if the debtor voluntarily pays, they cannot demand it back.

6. Special Practical Routes Creditors Use

6.1. Case Filing: Regular Civil Action or Small Claims

Banks and collection agencies may sue for unpaid balances through:

ordinary civil actions for sum of money; or
small claims (if within the jurisdictional amount under small claims rules).

Filing a case interrupts prescription immediately.

6.2. Assignment to Collection Agencies

When banks sell or assign debts, the assignee steps into the creditor’s shoes. Assignment does not reset prescription by itself, but the assignee can still interrupt prescription through demand letters or suit.

7. Common Misconceptions in the Philippines

Misconception 1: “All credit card debt prescribes after 10 years automatically.”

Not automatically. Interruption can reset the period repeatedly.

Misconception 2: “If I ignore collectors for 10 years, I’m safe.”

Not necessarily. A single provable written demand or partial payment can extend enforceability.

Misconception 3: “Prescription means the debt is erased.”

No. It only bars court enforcement.

Misconception 4: “Collectors can file a criminal case for unpaid credit card debt.”

Ordinary nonpayment of credit card debt is a civil matter, not criminal. Criminal liability could arise only under separate facts (e.g., proven fraud, use of falsified identity, or bouncing checks if checks were issued), but not from mere inability to pay.

8. Interaction With Other Philippine Laws and Rules

8.1. Interest, Charges, and Unconscionability

Even if suit is timely, courts can reduce:

excessive interest,
penalties or charges deemed unconscionable, under general Civil Code principles on equity and fairness.

8.2. Credit Information and “Blacklisting”

Banks may report delinquency to credit bureaus under the Credit Information System Act framework. Prescription of the action does not automatically remove adverse credit history, though reporting is subject to accuracy, dispute mechanisms, and data retention policies.

8.3. Collection Conduct and Harassment

Collectors must comply with:

general civil law on damages for abuse;
consumer protection principles;
privacy and anti-harassment norms.

While there is no single “anti-collection harassment” statute, abusive conduct may expose collectors to civil liabilities and regulatory complaints.

9. How Debtors and Creditors Typically Litigate Prescription

9.1. Debtor’s Burden

To successfully invoke prescription, the debtor usually argues:

what prescriptive period applies (10 or 6 years),
when the cause of action accrued,
that no valid interruption occurred within that timeframe.

9.2. Creditor’s Burden

The creditor counters by proving:

existence of a written contract (to secure 10 years),
dates of default,
interruptions (demand letters, acknowledgments, payments, or prior suits).

10. So—Does Credit Card Debt Prescribe After 10 Years?

Yes, in general, an action to collect credit card debt prescribes in 10 years under Article 1144 if it is based on a written credit card agreement or application and no interruption occurs within that period.

But:

it could be 6 years if treated as an oral/unknowable contract;
the 10-year clock runs from default/when suit could first be filed, not from card issuance;
written demands, acknowledgments, partial payments, or lawsuits reset the clock;
prescription must be raised by the debtor in court to be effective.

11. Practical Takeaways

For Cardholders

Track your last payment and any written communications you sent acknowledging the debt.
If sued, consult counsel about prescription before filing a response.
Avoid casual written promises to pay if you intend to rely on prescription.

For Creditors

Preserve application forms, agreements, statements, and delivery proofs.
Make documented written demands within the prescriptive period.
File suit timely when settlement efforts fail.

12. Bottom Line

The Civil Code gives creditors 10 years to sue on written credit card obligations, but in practice that window can be extended repeatedly through interruptions. Prescription is a powerful but technical defense, not an automatic eraser. The real question in any case is not “Has 10 years passed?” but:

What prescriptive period applies?
When did default make the debt demandable?
Did any interruption occur—and can it be proven?

If you want, tell me a hypothetical timeline (default date, last payment, any demand letters) and I’ll map out how prescription would likely run under Philippine rules.