Bank Secrecy Act, Truth in Lending

truth in lending - ra 3765

the policy of the state 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 precenting the uninformed use of credit to the detriment of the national economy

banks and financial institutions

____ and ______ under BSP supervision are hereby enjoined to strictly comply with the provisions of RA No. 3765

creditor

is any person engaged in the business of extending credit who requires the payment of a finance charge

bank secrecy law

a law that makes you aware of the consequences of loans

banks, financial institutions, creditors

required to comply with RA 3765

• loan amount

• up front chargers/deductions

• net proceeds of loan

• schedule of payments

• effective interest rate

• conditional charges

required information in TILA

6%

legal rate of interest per annum (as per BSP)

no

can interest be imposed if it’s not in writing?

yes

must the disclosure statement (thats in writing) be attached to the credit transaction contract?

borrower

who has a right to demand a copy of the disclosure statement?

• those that dont involve the payment of any finance charge by the creditor

• those where the debtor is the one specifying a definite and fixed set of credit terms

excluded transactions (2)

no

does non-compliance with law affect the validity or enforceability of the contract itself?

debtor

as a consequence of non-compliance, who can recover any interest payment made?

100-2,000

liable in the amount of ??? as a consequence of non-compliance

greater than 1000, less than 5000; 6 months-12 months

fines as a consequence of non-compliance

philippine government

penalty exclusion:

no punishment or penalty under the TILA shall apply to the __________ or any agency or any political subdivision thereof

1 year

prescriptive period under the truth in lending act:

civil action must be brought within ____ from the date of the occurrence of violation

bank secrecy - ra 1405

known as an act prohibiting disclosure of or inquiry into deposits with any banking institution

bank secrecy - ra 1405

this law was enacted to encourage individuals to deposit their money in banks instead of hoarding them

september 9, 1955

when was the bank secrecy law approved?

banking secrecy

practice that must be observed by the banks

bank secrecy law

law that protects all deposits of whatever nature in banks or banking institutions in the ph as well as investments in government bond

bank secrecy law

this law prohibits any person from disclosing to any person any info about funds or properties belonging to the depositors in the custory of the bank

deposit

means the unpaid balance of money received by a bank in the usual course of business and for which it is obliged to give credit to an account thats evidenced by a passbook

philippine deposit insurance corporation

pdic meaning

deposit of whatever nature

a term construed broadly to include accounts that may be used in banks for authorized loans to third persons

deposit

this is characterized as being in the nature of a simple loan

investments in government bonds

• refer to investment bonds issued by the gov

• are debt securities that are unconditional obligations of the state and backed by its full taxing power

• include treasury bills, treasury notes, retail treasury bonds, dollar linked peso notes, and other risk-free bonds

• government official

• employee of banking institution

• person who commits a violation of any provision of the law

persons liable under the bank secrecy act

• written permission by depositor

• impeachment

• order of the court in cases of bribery or dereliction

• order of the court in cases where deposited money is the subject matter of litigation

• upon subpoena of the ombudsman

• BIR

• AMLC with court order

• AMLC without court order

• BSP

exceptions to bank secrecy (9)

absolute confidentiality

all foreign currency deposits have ___________ and cannot be examined, inquired, or looked into by any person, government official, bureau, etc.

foreign currency deposits

refer to funds in foreign currencies that are accepted and held by authorized banks in the regular course of business with the obligation to return an equivalent amount with or without interest

garnishment

a legal process where a creditor obtains a court order to collect a debt by seizing a portion of the debtor’s wages bank accounts, or assets

garnishment

a legal process that allows creditors to recover owed funds directly from the debtor’s income or assets to satisfy outstanding debts

10 exceptions

how many confidentiality exceptions are local currency deposits subject to?

1 exception (written permission of the donor)

how many confidentiality exceptions are foreign currency deposits subject to?

garnishment

what is the court order or process for local currency deposits?

exempt

what is the court order or process for foreign currency deposits?