Truth in Lending Act

Question 1

Declaration of Policy

Answer 1

To protect its citizens from a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view of preventing the uninformed use of credit to the detriment of the national economy

Question 2

Required Information

Answer 2

1. Cash price or delivered price of the property
2. the amounts to be credited as down payment and/or trade-in
3. The difference between 1 and 2
4. The charges, individually itemized
5. The total amount to be financed
6. The finance charge expressed in terms of pesos and centavos
7. The percentage that the finance charge bears to the total amount

Question 3

Under section 5 of BSP Circular no 755 series of 2012

Answer 3

1. The amount to be financed
2. The finance charge
3. The net proceeds of the loan
4. The percentage that the finance charge bears to the total amount

Question 4

To register, entity shall submit the following information

Answer 4

1. Business name
2. Directors, Key Officers, and Substantial Stakeholder
3. Principal Place of Business and Substantial Stakeholders
4. Notarized Deed of Undertaking
5. Other information required by BSP

Question 5

Penalty for violating the Act

Answer 5

Fine: Not less than 100 or more than 5000
Imprisonment: Not less than 6 months but not more than 1 year; or
Both