Small Claims for Money Borrowed via Credit Card (Philippines): How to Sue and Collect

Practical, step-by-step guidance for Filipino creditors who used their personal credit card to “lend” money (cash advance, charge on behalf of someone, reimbursable purchase) and now need to collect.

This is general information, not legal advice. Court practice can vary by station, and rules get amended. When in doubt, verify details with the Office of the Clerk of Court.

1) When small claims is the right remedy

Small Claims Cases are heard by the first-level courts (Metropolitan/ Municipal Trial Courts: MeTC/ MTC/ MTCC/ MCTC) using a fast, no-lawyers, one-hearing procedure for purely money claims arising from:

Loans, services, sales, leases, deposits, or other contracts
Forbearance of money (someone used your funds and must pay back)
Liquidated damages (agreed amounts in a contract)

Credit-card-funded loans qualify

If you:

Withdrew cash (cash advance) and handed it to the borrower, or
Paid for their item/expense on your card on the agreement they’d reimburse you,

…your claim is a debt/loan or forbearance of money. You can sue the borrower directly; you do not need to involve the card issuer.

Amount limit (jurisdictional cap)

Small claims has a peso cap on the principal claim (exclusive of interest, damages, attorney’s fees, and costs). The Supreme Court has periodically increased this cap over the years. Check the current threshold at filing; if your principal exceeds it, you may:

Waive the excess to fit within small claims, or
Use the regular civil procedure instead.

2) Venue & pre-conditions

Venue. File in the first-level court of your residence/principal office or the defendant’s residence/principal office (your choice), provided venue isn’t waived by written agreement.

Barangay conciliation. If both you and the borrower are natural persons who live in the same city/municipality, most money disputes must first go through the Katarungang Pambarangay (Lupon). If required, secure a Certificate to File Action (CFA) and attach it. Not needed if, e.g., the parties live in different cities/municipalities, a party is a corporation, or other recognized exceptions apply.

Prescription. Typical deadlines:

Written contract: 10 years
Oral/implied contract: 6 years Count from default (the due date you set in a demand or agreed due date).

3) What you can claim (and how to compute)

Principal. Sum of amounts you paid/advanced for the borrower.

Your card charges actually caused by the loan.

Finance charges/interest/fees your issuer billed because of the loan can be claimed as actual damages if you prove they were foreseeable (e.g., you told the borrower it was a card cash-out with charges, or that delaying payment would cause interest). Attach statements.

Legal interest. For loans/forbearance, Philippine jurisprudence generally applies 6% per annum legal interest:

Pre-judgment: from default date (e.g., the deadline in your demand letter) until judgment
Post-judgment: 6% per annum until full payment

Attorney’s fees/costs. You may claim attorney’s fees only if there’s a legal/contractual basis (e.g., “10% collection fee”), and litigation costs (filing, service, sheriff’s fees). These don’t count against the small-claims cap.

Sample computation (illustrative):

Principal advanced: ₱60,000 (cash advance + purchases)
Issuer’s interest/fees attributable to the loan: ₱3,200 (attach statements)
Pre-judgment legal interest (6%/yr) from 1 Jan 2024 to date of judgment on the principal or on the amount due (courts differ—explain both bases and let the court fix)
Costs and (if applicable) attorney’s fees per contract

4) Evidence that typically wins

Bring originals to the hearing and attach clear copies to your claim:

Card statements showing the exact cash advance/charge(s)
Proof you gave the benefit to the borrower (cash hand-over receipt, transfer slips, photos, delivery receipt naming them, chat confirming they received the money/item)
Agreement to reimburse (promissory note, chats, texts, emails, voicemails transcribed)
Demand letter with a clear due date (and proof of sending: courier registry, email, Viber/FB message screenshots)
Your payment proofs to the issuer (if claiming issuer interest/fees)
Borrower’s ID / known address (for summons and execution)
Barangay CFA (if required)
Computation sheet (transparent, dated)

Privacy tip: Redact card number except last 4 digits on copies; bring full unredacted originals for the judge.

5) Preparing the papers

Courts provide ready-made Small Claims forms, including:

Statement of Claim (verified; with Certification Against Forum Shopping)
Response (for the defendant)
Witness affidavits (if any)

How to fill smartly:

State a simple story: what you advanced, when, why they owe, demand made, and non-payment
Attach documents as Annex “A,” “B,” “C”… and cite each annex in your narration
Quantify each head of claim in a clean table
Include the borrower’s email and mobile (the rules allow e-service)
If you’re a corporation/partnership, authorize your non-lawyer representative by board/partner resolution; if you’re an individual who can’t appear, prepare a Special Power of Attorney for your non-lawyer representative (lawyers generally cannot appear as counsel in small claims)

Copies. Prepare the original plus the number of defendants and one for the court (ask the clerk how many sets that court requires).

Fees. Pay filing and service fees at the cashier (indigent exemptions may apply under the Rules on Legal Fees). Keep the OR.

6) Filing to judgment: what actually happens

File your verified Statement of Claim with annexes and pay fees.
Court issues summons (often by sheriff/courier; e-service may also be ordered).
Defendant has 10 calendar days from receipt to file a verified Response with their evidence.
Court sets a single hearing (often within a few weeks).
No lawyers as counsel at the hearing. The judge will first try settlement; if none, the judge receives brief testimony (usually limited), evaluates the documents, and decides—typically the same day or very shortly after.
The Decision in small claims is final, executory, and unappealable (extraordinary remedies are rare and technical).

Prohibited motions (typical). Don’t expect motions to dismiss, for bill of particulars, for new trial/ reconsideration, or for appeal to be entertained; the rules purposely disallow delay.

If defendant doesn’t respond or appear. The court may render judgment by default based on your papers—so make your annexes airtight.

7) After you win: real-world collection

Winning is half the job. To get paid, promptly file a Motion for Execution. The court issues a Writ of Execution and the sheriff starts collection:

A) Garnish money owed to debtor

Bank deposits. If you know the bank, ask the sheriff to serve the writ on that bank (branch or head office as local practice requires). Once served, the bank must freeze and turn over covered funds (subject to statutory exemptions and bank-secrecy rules on disclosure; garnishment via court order is generally honored).
Salary/receivables. Serve the employer/clients as garnishees so they remit part of what they owe the debtor, subject to labor/social legislation limits.

B) Levy and sell property

Sheriff can levy personal or real property and conduct an auction, with proceeds applied to your judgment.

C) Examine the debtor (post-judgment discovery)

Move for an Examination of Judgment Debtor/Garnishee (Rule 39-style). The court can compel the debtor (and even third parties) to appear and disclose assets, employers, and banks, and bring documents. Non-compliance can be sanctioned.

Practical tips

Bring specifics: bank names, employer info, plate numbers, known assets.
Be ready to advance sheriff’s expenses (for service/levy), recoverable as costs.
If there’s partial payment, keep collecting interest on the unpaid balance until fully satisfied.

8) Special situations (and how to handle them)

Claim slightly above the cap? Waive the excess in your Statement of Claim to stay in small claims (state this clearly).
Defendant abroad or can’t be served? Small claims is an in personam action—effective service is crucial. If personal/substituted/electronic service can’t be validly made, consider alternative strategies (settlement, collection where they are, or a regular case with leave for out-of-country service if legally viable).
No written loan—only chats? That’s okay. Attach clear screenshots with timestamps and identities; explain the context in your verified narration.
You charged “very high” interest? Courts may reduce unconscionable rates. If there’s no written rate, ask for legal interest (6% p.a.) from default.
Multiple borrowers? Sue them jointly if the obligation is joint/solidary per your agreement or facts.
Borrower denies receiving the money/item. Prove delivery (cash hand-over receipt, transfer slip to their account, delivery receipt naming them, CCTV/photo, or admission in chats).
Barangay step skipped when required? The case risks dismissal; cure the defect by conciliation and refile (venue/prescription permitting).

9) Common mistakes to avoid

Vague due dates. Set a clear deadline in your demand (e.g., “Pay by 15 October 2024”). Interest usually runs from default.
Weak proof of linkage. Tie each statement entry to the borrower (e.g., “Annex B—cash advance slip; Annex C—Gcash transfer to borrower; Annex D—chat admitting receipt”).
Over-claiming (moral/exemplary damages without basis). Keep it clean and contractual; it reads better in small claims.
Bringing a lawyer to speak for you. Not allowed (unless you yourself are the lawyer-party).
Attaching full card numbers. Redact copies to the last 4 digits.

10) Quick filing checklist

Right court (venue OK) and cap satisfied (or excess waived)
Barangay CFA attached (if required)
Verified Statement of Claim + Certification Against Forum Shopping
Annexes: statements, proof of delivery/receipt, demand + proof of sending, computation, IDs
Service details: defendant’s physical address, email, and mobile
Filing fees paid (keep OR)
Originals ready for hearing; extra sets of copies prepared
Execution plan drafted (banks/employer/assets to target)

11) Handy templates (you can copy/paste and tailor)

A. Short, firm demand letter

Subject: Demand to Pay — Credit-Card-Funded Loan Date: [__________]

[Borrower’s Name] [Address / Email]

Dear [Name], On [date(s)], I advanced ₱[amount] to you by using my credit card (details: [brief description/Annex refs]). You agreed to reimburse in full.

As of today, ₱[principal] remains unpaid. Interest/fees from my card issuer attributable to this advance amount to ₱[amount] (see statements).

Please pay ₱[total due] on or before [firm date] by [payment method]. If unpaid by that date, I will file a Small Claims Case to collect the amount plus legal interest, costs, and allowable fees.

Sincerely, [Your name, address, mobile, email]

B. Claim computation (attach as Annex)

Principal advanced: ₱[ ]
Issuer interest/fees attributable to loan: ₱[ ] (Annex __)
Subtotal: ₱[ ]
Less payments (if any): ₱[ ] (Annex __)
Balance: ₱[ ]
Legal interest (6% p.a.) from [default date] until judgment (to be fixed by the court)
Plus costs of suit and contractual attorney’s fees (if any)

12) Final pointers for hearing day

Arrive early. Bring government ID and all originals.
Keep your story under 5 minutes; point to annexes.
Be open to a written settlement if offered—ask for dated installment plan, default clause, and consent to immediate execution if they miss a payment.
If you win, move for execution promptly. Momentum matters in collection.

Bottom line

If someone borrowed money by having you use your credit card, small claims gives you a fast, document-driven path to a judgment—and tools to collect. Nail the venue and cap, make your paper trail airtight, set a clear default date, and plan execution from Day 1.