TRUTH IN LENDING ACT

Special Laws

Entity with credit-granting facilities or CGEs

Entity with credit-granting facilities or CGEs

include corporations, organizations, partnerships and single proprietorships registered with the SEC and the DTI.

includes those who, in the course of their business, extend credit through installment or deferred payment sale, such as but not limited to real estate dealers or property developers, car, and other vehicle dealers, or appliance stores, banks, shall be deemed as CGEs.

REQUIRED INFORMATION

1. cash price or delivered price of the property or service to be acquired

2. amounts, if any, to be credited as down payment and/or trade-in

3. difference between the amounts set forth under (1) and (2)

4. 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 credit

5. total amount to be financed

6. finance charge expressed in terms of pesos and centavos

7. percentage that the finance charge bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation.

DUTY of CGEs

furnish each borrower with a copy of the disclosure statement, prior to the consummation of the transaction.

The disclosure statement shall be a required attachment to the loan contract and the customer has a right to demand a copy of such disclosure.

Information needed for the Registration of CGE with the BSP

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, or president or officer of equivalent rank

5. Such other information or documents that may be required by the BSP.