Truth in Lending Act

Question 1

Any creditor shall furnish, prior to consummation of transaction, a clear statement of writing some information. What are the required information to be disclosed?

Answer 1

• total amount to be financed
• finance charge
• net proceeds of loan
• percentage of finance charge to the total amount (simple or effective interest rate)

Question 2

I failed to disclose the required information above. What are the penalties? What is the limit?

Answer 2

Higher of
- P100
- 2x finance charge

Maximum of P2,000.