Truth in Lending Act

Question 1

Truth in Lending Act is RA________

Answer 1

RA 3765

Question 2

Purpose of Truth in Lending Act

Answer 2

raise awareness as to the true cost of credit

not to set limit on the rates

Question 3

Required info in Disclosure

Answer 3

1. amount to be financed
2. finance charge (peso and centavo)
3. net proceeds
4. EIR

Question 4

Computation of interest for CGE

Answer 4

based on outstanding balance at the beginning of an interest period

Question 5

Validity of Acknowledge of Registration

Clue: sieges of truth

Answer 5

validity: 3 years
renewable in the anniversary month of original
registration

Question 6

Penalties for Failure to disclose

Answer 6

failure to disclose

higher P100 or

        2x finance charge or 2k (lower)

prescriptive period: within one year from occurrence of violation

Question 7

Penalties for violation of truth in lending act

Answer 7

Fine: 1k - 5k
Imprisonment: 6 mos. to 1 yr.

Question 8

No punishment or penalty to Phil Gov

Answer 8

True

Question 9

Disclosure statements to be attached in loan contract; customer has right to demand

Question 10

Loan documents and Marketing Materials. All loan-related document shall show repayment schedules.

Question 11

Posters. Post in business and branches; explicit notification that disclosure is a required attachment.

Question 12

Clear statement must be furnished ___________

Answer 12

PRIOR to consummation

Question 13

Clear statement must contain the ff:

Answer 13

1. cash price or delivery price of the property
2. DP and or trade-in
3. difference between the 1 and 2
4. charges, individually itemized, but which are not incident to the extension of credit
5. total amount to be financed
6. finance charge (peso and centavo)
7. percentage rate finance charge to the total amount

Question 14

Terms

Answer 14

Board
Credit
Finance charge
CGE (credit granting entities)
Person