Truth in Lending Act

Question 1

What is the purpose of the TILA?

Answer 1

1. To protect debtor from unawareness of credit cost through full disclosure
2. To avoid circumvention of the usury law

Question 2

Who is the implementing authority of the TILA?

Answer 2

Monetary Board of the BSP

Question 3

To what characters does tila apply to?

Answer 3

1. Business extending credit and applies payment for finance charge
2. Person as a regular business practice make loans, sells, or rents property or services in a time, credit or installment basis as a principal or an agent

Question 4

What are the excluded transactions in TILA

Answer 4

1. Credit transactions without a finance charge
2. Debtor is the determinant of the credit terms

Question 5

What are the prerequisite in the disclosure requirements?

Answer 5

Information must be in writing, and must be prior to the consummation of the transaction