New UnionBank Pag-IBIG Loyalty Card Plus Dormancy Rules (Effective June 16, 2026)

If you use a UnionBank-powered Pag-IBIG Loyalty Card Plus, it’s time to check your balance. While this card is famous for its 500+ merchant discounts and seamless loan disbursements, a major update to the Terms and Conditions is set to take effect on June 16, 2026.

For the first time, UnionBank will implement a specific fee structure for dormant accounts. Here is the breakdown of what is changing and how to protect your savings.

​The 2-Year "Dormancy" Definition

Starting June 16, 2026, UnionBank is strictly enforcing the two-year inactivity rule.

• The Trigger: Your account is classified as Dormant if there has been no "member-initiated activity" for two (2) consecutive years.
• What counts as activity? Deposits, ATM withdrawals, fund transfers (via InstaPay/PesoNet), or using the card for a purchase (POS).
• What DOESN'T count? Bank-initiated actions, such as interest credits or the deduction of previous fees, do not reset the dormancy clock.

The P30.00 Monthly Dormancy Fee

This is the most critical update for cardholders. While the account becomes dormant at year two, the financial penalty begins later.

• Effective Date: June 16, 2026.
• The Cost: A P30.00 (imposed on the dormant deposit account five (5) years after the last
  activity therein) monthly fee will be charged to dormant accounts.
• The Threshold: This fee is only applied once an account has been dormant for five (5) years.

Important Note: If your account balance reaches zero because of these fees, UnionBank reserves the right to close the account automatically.

Why This Matters for Your Loans

Many members only use their Loyalty Card Plus to receive Multi-Purpose Loans (MPL) or Calamity Loans. If your card is dormant:

• Failed Credits: Pag-IBIG may encounter errors when attempting to credit your loan proceeds.
• Dividend Delays: Your annual MP2 dividends or regular savings withdrawals might not go through if the linked UnionBank account is inactive.

How to Avoid Fees

• Maintain Activity: Perform at least one transaction—such as a deposit, withdrawal, or fund transfer—every two years.
• Monitor Notifications: UnionBank is required to notify you at least 60 days before your account becomes dormant and again 60 days before any dormancy fees are applied.

How to Avoid Fees
​

• Maintain Activity: Perform at least one transaction—such as a deposit, withdrawal, or fund transfer—every two years.
• Monitor Notifications: UnionBank is required to notify you at least 60 days before your account becomes dormant and again 60 days before any dormancy fees are applied.