SBN-848: Prepaid Load Protection Act of 2016

An Act Prohibiting Telecommunication Companies From Imposing An Expiration Period On The Validity Of Prepaid And The Forfeiture Of Load Credits Thereof

  • This bill otherwise known as the “Prepaid Load Protection Act of 2016” prohibits any telecommunication company providing prepaid services from the:
    1. Imposition of an expiration period on the validity of unused prepaid call and text cards;
    2. Forfeiture of load credits stored on an active prepaid phone account via prepaid call and text card or electronic transfer; and
    3. Refusal to give a refund to any prepaid subscriber whose load credits were forfeited without any valid cause.
  • Any director, officer, employee or agent of a telecommunication company providing prepaid services who shall violate any of the acts mentioned under Section 4 hereof, shall, upon conviction, be subject to the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) but not to exceed One million pesos (P1,000,000.00) or imprisonment of not less than two (2) years but not more than six (6) years, or both, upon the discretion of the court.
  • If the violation was committed by or in the interest of a juridical person duly licensed to engage in business in the Philippines, the following penalty shall be imposed:
    1. First offense – a fine of Five hundred thousand pesos (P500,000.00);
    2. Second offense – suspension of license to engage in business for a period of thirty (30) days; and
    3. Third offense – immediate revocation of license to engage in business.


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