Truth in Lending Act (RA 3765)

Question 1

Required information under TILA

Answer 1

1. cash price or delivered price of the property or service to be acquired;
2. the amounts, if any, to be credited as down payment and/or trade-in;
3. the difference bet. the amounts set forth under (1) and (2)
4. the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not incident to the extension of the credit
5. the total amount to be financed
6. the finance charge expressed in terms of pesos and centavos; and
7. the percentage that the finance charge bears to the total amount to be financed expressed as a simple annural rate on the outstanding unpaid balance of the obligation

Question 2

Required information to be disclosed under BSP

Answer 2

1. the total amount to be financed
2. the finance charge expressed in terms of pesos and centavos
3. net proceeds of the loan; and
4. the percentage that the finance charge bears to the total amount to be financed expressed as a simple annual rate or an effective annual interest rate (EIR).

Question 3

All loan-related documents shall show___

Answer 3

repayments schedules

Question 4

What is the manner of computing interest?

Answer 4

All registered CGEs shall charge interest based on the outstanding balance of a loan at the beginning of an interest period.
loan where principal is payable in installments – interest per installment - calculated based on the outstanding balance of the loan at the beginning of each installment period.

Question 5

Minimum information to be submitted to the BSP to register the lending or financing facility

Answer 5

1. Business name
2. Directors, Key Officers, and Substantial Stakeholders
3. Principal place of business and contact details
4. Notarized deed of undertaking to strictly and continuously comply with the requirements of all relevant laws, rules, and regulations, signed either by the owner, partner, president, or officer of equivalent rank
5. Such other information or documents that may be required by the BSP

Question 6

For how long shall an Acknowledge of Registration (AoR) be valid?

Answer 6

it shall be valid for a period of 3 years from the date of issuance and renewable thereafter on the anniversary month when it was originally registered.

Question 7

Prescriptive period of action to recover such penalty

Answer 7

Within one year from the date of the occurrence of the violation, in any court of competent jurisdiction