What is the “Truth in Lending Act”?
It is Republic Act No. 3765, which is an act requiring the disclosure of finance charges in connection with the extension of credit.
What is the policy behind the Truth in Lending Act?
The declared policy behind the law is to protect the people from lack of awareness of the true cost of credit by assuring full disclosure of such cost, with a view of preventing the uninformed use of credit to the detriment of the national economy.
Who are covered under the Truth in Lending Act?
The law covers any creditor, which is defined as any person engaged in the business of extending credit (including any person who as a regular business practice make loans or sells or rents property or services on a time, credit, or installment basis, either as principal or as agent) who requires as an incident to the extension of credit, the payment of a finance charge.
In that definition, what is meant by “credit”?
It means any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract; any contract to sell, or sale or contract of sale of property or services, either for present or future delivery, under which part or all of the price is payable subsequent to the making of such sale or contract; any rental-purchase contract; any contract or arrangement for the hire, bailment, or leasing of property; any option, demand, lien, pledge, or other claim against, or for the delivery of, property or money; any purchase, or other acquisition of, or any credit upon the security of, any obligation of claim arising out of any of the foregoing; and any transaction or series of transactions having a similar purpose or effect.
In the same definition, what is meant by a “finance charge”?
A finance charge includes interest, fees, service charges, discounts, and such other charges incident to the extension of credit as may be prescribed by the Monetary Board of the Bangko Sentral ng Pilipinas through regulations.
What are the information required to be furnished to the debtor or borrower?
(1) the 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 between the amounts set forth under clauses (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 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 bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation.
When and how should these information be furnished to the debtor or borrower?
The information enumerated above must be disclosed to the debtor or borrower prior to the consummation of the transaction. The information must be clearly stated in writing.
What is the effect on the obligation in case of violations to the Truth in Lending Act?
The contract or transaction remains valid or enforceable, subject to the penalties discussed below.
What are the penalties in case of violation?
1. Any creditor who violates the law is liable in the amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection with such
transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction. The action must be brought within one year from the date of the occurrence of the violation.
2. The creditor is also liable for reasonable attorney’s fees and court costs as determined by the court.
3. Any person who willfully violates any provision of this law or any regulation issued thereunder shall be fined by not less than P1,00 or more than P5,000 or imprisonment of not less than 6 months, nor more than one year or both.
However, no punishment or penalty under this law shall apply to the Philippine Government or any agency or any political subdivision thereof.
(Here’s the full text of the Truth in Lending Act)
Hi Atty.,
I would like to ask if a pre-need company lending money to its planholders where their plans waiting for maturity are used as collaterals coevered by the Truth in Lending Act?
Thank you so much.
Hi Atty! I would like to ask. How much is the legal interest rate for lending companies? I borrow from Orpadi Lending Company or Lil’s Lending Company the amount of 150,000 thousand pesos. The monthly payment is P8000+ payable in 3yrs which means that the real amount they lent me is actually P298,000. Yung explanation nila kasi all in na raw yun kasi okay lang daw 3k lang yung payment na mabibigay ko monthly until matapos ako sa payment ko. So I thought it must be the interest kaya umabot sa 290k yung 150k. So I tried asking what if I can pay the whole amount (290k) earlier will I be given rebates? They said NO. WTH! Imagine they lend you 150k but in reality 290k pala yung totoong amount. Almost 100% naman yung interest nila. Is what they are doing legal?
3 taon na po ako nagbabayad ng motor in installment basis ..inabot na po ng 100k….puro penalty,,,tubo na pinatutubuan pa tsms po ba un
Ang loan interest po ay puwedeng itaas kahit hindi pa ito due? Halimabawa po, nagloan ako at payable po for three years, ngayon two years na po at malapit na akong matapos ang ginawa ng ahensiya dahil hindi na ako nakahulog itinaas po ang interest na ipinatong sa utang halos doble ang dating simple interestt ginawa pa na compounded pati na ang surcharge, legal po ba ito? puwede ko po bang kuwestiyunin ang ginawa nila?
Gus day, i make a loan to a financing, i mortgage my truck, but after 3 months i find hard time to pay, i told them that i willing to give my unit, but they told me that unit will eventually adjust the appraised value, it means they will get the unit and i will still pay money for the difference of new appraise value of the unit.is it their right to change the appraised value of the unit in our contract?
Tanong ko po. .nangutang po ako ng pera at kapalit nag issue ng tseke. . Hindi po ako nakabayad. . Ung utang ko 35k lahat ngayon siningil ko ang babayaran ko ay aabot ng 72,400… delayed ko is 5 months then 10% ang tubo nkalagay dko nabasa kung ang penalty sobra laki. Allowed ba yon?please reply. Alam ko pwede ko habulin dahil nag issue ako ng check. Ano maganda at tama ko gawin?thank you very much
I have been paying an interest of 8percent per month sa nautang ko na worth 300k. Every month po ako nagbabayad ng walang delay. Nakikiusap po ako sa hiniraman ko na kung pwede po babaan yung interest para makabawas ako sa capital na nahiram ko pero ayaw po pumayag. Nadelay po ako this month lang dahil nagkasakit po ako at pilit niyang pinapabayad na ang buong kapital. Humihingi po ako ng terms pero ayaw po niya. Ano po ang karapatan ko? Pumirma po ako sa may nahiram po ako sakanya ngunit wala po kaming interes na nakasulat sa kasulatan.
Hi po.ask ko lng po may nahiram ako 100k sa lending company at tinubuan nila ng almost 80k kasama po ng 10k na hiningi nila bgo irelease ang 100k…18months to pay po.ibinayad ko un sa agency as placement fee for dh…ngkaprob po ako abroad kya 3months lng ako abroad then umuwi na…nkapagbigay na ko ng apat na buwan sa lending 9340pesos ang monthly ko dhl nalelate may dagdag na 10percent.ngayon po two months n ko d nkkabayad dhl wla p ko work…nakiusap po ako kanila kng pwedeng gawing 3k muna monthly bayaran ko atlalakihan ko na lng kpg nkaalis ulit ako kc plan ko magsingapore…pwede po bang maging option ang ganun at valid ba ng magdagdag sila ng 10percent interest?ano po ba ang nkasaad na per annum na interest sa batas?salamat po
Hi po. Merun po ko home loan sa bank. 5 years na po nmin bjnabayaran sa bsnk un house namin. Pero now po 2 buwan. Palang kme delayed at hindi nakakabayad ng mo thly amort ang bank ay nagpadala agadng demand letter n bsyaran n nsmin un bukng smount ng home loan balance tsmz po bs ito. If ever n hindi n nmin itutuloy un home loan at un bahay merun pk b kame mskukuha sa mga nabayad n nmin? Please advice us. Thank you
HI GUD DAY KUMUHA PO AKO NG TV FOR INSTOLMEN 12 MONTHS SA AEON CREDIT BALE 3,600 N PO ANG NAIHULOG KO, TAPOS HINDI NA PO AKO NAKAPAG HULOG ISANG TAON N ANG NAKALIPAS MY KASO PO BA AKO PAKISAGOT PO .. SA EMAIL KO NLNG PO GOD BLESS////
Nangutang po kami ng asawa ko sa isang lending company (Doctor Cash). Nagka problema po kami sa pag bayad dahil sa hinold ang sweldo ng asawa ko at na debitan naman ako sa bank account ko (possible compromised). Naniningil po sila sa amin ngayon… nagbabanta, nananakot at nanghaharass. Pati po yung mga character reference namin ay tine text po nila at hinaharass. Pwede po ba nila ito gawin sa amin? May karapatan po ba sila mang banta, manakot at mangharass? Wala po kaming pinirmahan na kahit anong form sa kanila. Through email lang lang naging transactions. Pwede po ba paki email sa akin ang sagot dito sa katanungan ko? Salamat po
hello, same here beth, my debt din ako sa doctorcash, kya lang nagkasakit kasi ako kya d ako nkapagbayad ontime, tawag din cla ng tawag saken. Sabi saken nung taga doctor cash na nkausap ko,pag finorward daw nila sa collections ung account ko pupuntahan daw ako sa bahay at mgfifile ng complain sa barangay namin. ano na pong update nung sa inyo?
Hi just would like to know if ano nang nagyare sa debt nyo sa doctor cash? thanks
Hi guys, true enough po ba itong doctor cash?? I would like to try to apply sa kanila medyo doubtful lang ako kasi nga purely online ang transactions..
hope to receive a reply..
Thanks much!
hello po… ask ko po kung ano po na po ang nangyari sa loan nyo sa doctor cash? tumatawag pa rin po ba sila sa inyo? pls let me know kasi may loan din ako sa kanila at due ko napo this nov 10 kaso may financial problem po kami kaya malabo ako makapagbayad. pls help me. thanks po
Hi. Ask ko lang kung ano na nangyare sa issue mo with doctor cash? I have the same situation now. Pinuntahan ka ba nila sa bahay nyo? Nag issue ba sila ng bench warrant for you? May tumawag kse sakin from NCRPO TAGUIG daw sya. At they will issue bench warrant daw against me. Please reply po. Thank you
hi anong ngyari sa doctorcash mo?
hi ano na po nangyare s dr cash nyo same din saken kakatawag lang ngayob gawan ko daw ng paraan sa monday.
Ano advice sau? Meron din ako credit dun ano nang yri binayaran mo ba
Hi.,
Ask ko lng po ano n po nangyri sa doctor cash nyo? same kc din me nag problem… please email me.. Thank you
Hi! Nasagot na ba nila tong tanong mo? Ganun din kasi experience ko ngayon sa dr. Cash
Hi. Just wanted to ask if ano na nagyare sa issue mo with doctor cash? I have the same concern now and they are harrassing me. They will issue bench warrant daw, etc. totoo ba yun? Did you get a call also from NCRPO TAGUIG? Please reply. Thank you.
Hi Karen,
Same here.
Eto yung email nila..
: Writ of Execution to Seized Property against you will be executed , May 28, 2017, by Court Sheriffs & Authorities in line of your Deceit Case at Pasig City MTC Br. 63. Secure your presence at your Residence Venue to avoid any untoward incidents & issuance of Warrant of Arrest against you. Coordinate Normelyn at 475-3847 or 09058566382 for details to avoid full extent of the law
Kaso, may financial problem di kasi kami kaya di pa namin to mabayaran. I asked them kung pwede kahit pakonti konti basta mabawasan lang pero they declined. From 10k, naging more than 85k na raw utang ko.
Need advise. Thank you.
Hi Cyn. Ask ko lang ano nangyari dun sa email? Nag punta ba sila sa bahay nyo?
Hi. I owe money from doctor cash but wasn’t able to pay on time. The collections agency have been calling me, harrassing me and just the other day someone called me claiming that he is from NCRPO TAGUIG stating that a bench warrant is issued against me and will coordinate with the PNP in our place to accompany them in our house. I have been informed also that a civil and criminal case was filed against me by doctor cash. Is this really possible? I am willing to pay my debt and i have been trying to contact the lawyer who filed the case so we could arrange payment schedule but to no response. I have also contacted the collections department of doctor cash and spoke with one of their supervisors but he just advised to me to contact the lawyer as my account was already endorsed to the legal dept/lawyer. Please give me advise on this. Does doctor cash really file criminal cases to those who are unable to pay them on time. Also, i need to know if the interest is really 1% per day which makes it 30% in a month. Thank you and i would really appreciate a response.
Just my two cents, If I were all of you I will not be believing that a bench warrant (a written order issued by a judge authorizing the arrest of a person charged with some contempt, crime, or misdemeanor) was or will be issued. They only let a person owe up to 20k, hindi magsasayang ng resources at panahon ang NCRPO at PNP for such small amount. Under yan ng Small Claims Court. Hindi rin agad yan magrerelease ng kung anong warrant kung wala pa sa fiscal or wala pang kaso makakareceive ka muna ng subpoena. Actually ang una mong marereceive formal request to settle the owed amount from the creditor. Kung wala yan, harassment lang ang ginagawa nila.
I would still pay what I owe though bilang utang yan.
Hi DC nakaktawa kasi si doctor cash ung 4k na hiniram mo, nagkaproblem lang dahil naospital yung baby ko and i got laid off so walang wala ako i paid 50k+ sa hospital for a week except pa sa med nun baby, so since wala akong work everytime na my pera ako ive been trying to extend a month 1200 pesos kada extension ng payment due. In three months imagine naka magkano ako? 3600? So 400 nalang balik na hnram ko dba? Nagsisi ako bakt pako nang hiram ke doctor cash nung ng try akk mag extend hndi na ako pna extend eh wala padin akong pera since ng hahanap pa ako work same time bantay sa bata., so imagine 1month late 80/ler day + 700 pesos late pebalties, nung mgbbyad nako ng all in mgkano inabot 10,000+ so nawalan ako nang gana magbayad ksi unfair?? Grabe ung tubo nila even nads writing nila na there is a late payment it is not clear hindi dn sinabe na 80/per day bago irelease ung money so i guess i wont pay that amount kung ano ung babayaran kk un lang dapat. Ksi in the first olace before nla irelease ung pera instead 4,000 bawas na ng 400 pesos so ung nahiram kong 3600 naging 10,000 hndi naman tama yon! Sana gabain sila makarma.
Hi. Were you able to receive a call from ncrpo or any atty? Kse same din sakin 4k lang ang na-loan ko tapos umabot ng 11200 which is very unacceptable naman. Willing to pay din naman ako kaya lang napaisip
Ako na baket ganun kalaki ang interest nila diba. Kelan ka nanghiram sa kanila? And have you tried calling their collections dept? Kse ako i tried pero ang sabi wala na daw sa kanila ang account ko, nada legal dept na daw. Pls email me we have the same situation..
@karen yes I did banyan dn sinabi skn wla ndaw sa collection ang acct ko I called their Atty. Today pro ang gulo kausap ng kusap ko sa phone I was looking for a certain person named Mr.Santos tapos save ng kausap ko call back Malang saw after lunch… Something is wrong.
we have the same scenario ask them to to give an email the breakdown ng actual loan mo interest and penalties wala sila maibigay kasi fraud sila. Art. III ng 1987 Constitution that “no person shall be imprisoned for non-payment of debt.” hindi sila dapat bayaran.
Ang violation ng Batas Pambansa Bilang 22 otherwise known as Anti-Bouncing Check ay hindi nagpaparusa sa hindi pagbabayad ng utang. Ang pinaparusahan ng batas na ito ay ang pag-iissue ng tseke na talbog na nakakagulo sa banking industry at nakakaapekto sa banking at financial system ng Pilipinas.
Kung kaya ay dapat mag-ingat sa pag-issue ng tseke at siguraduhin na meron itong pondo dahil mere bouncing ng check ay violation ng BP22 and good faith is not a defense.
————
Gayunpaman, sa Pilipinas, ang simpleng utang na hindi lalagpas sa P100,000 ay pwede nang singilin sa Court of Small Claims kung saan hindi na kailangan ng abogado under Supreme Court Administrative Matter No. 08-8-7-SC otherwise known as “Rule of procedure for small claims cases”:
Ang Small Claims Court ay tinatag ng Supreme Court upang maging mabilis at matipid ang paniningil ng utang na hindi lalagpas sa P100,000.00.
Under S.C. Administrative Matter No. 08-8-7 otherwise known as “Rule of Procedure for Small Claims Cases”, ang isang utang galing sa pagpapaupa, pagpapahiram ng pera, serbisyo na ginawa, bentahan, sanglaan, kapabayaan o kontrata na ang sinisingil ay hindi lalagpas sa P100,000 ay pwedeng isampa sa Metropolitan Trial Court – Court of Small Claims kung saan gagawa lang ng complaint ang naniningil at agad na pasasagutin ang umutang.
Pagkatapos ng isang hearing ay magdedesisyon na kinabukasan ang korte sa kaso. Nasa Section 17 din ng rules na ito na bawal ang mga lawyer sa ganitong kaso except kung ang lawyer mismo ang nagsampa o sinampahan ng kaso. (Atty. Marlon Valderama, http://www.e-lawyersonline.com)
ano po nangyare? same situatiob with me
Hi I am also in the situation just like you. Although wala pa naman akong warrant na nare-receive ang sabi lang sakin if di ako nag bayad until Mondaymay pupunta daw sa bahay namin. Parang di naman taga Law firm yung nakausap ko di naman ganun makipag usap ang mga taga law firm. Nakakainis lang mas mahigpit pa silang maningil kesa sa mga bangko. Imagine from my 8,000 principal amount ang babayadan ko ngayon is umabot ng 61,000. Do I have to pay that amount parang ang unfair kasi wala man lang silang discount na binibigay. Sobrang gipit na gipit pa din ako ngayon. Ano po kayang gagawin ko?
Hi Karen,
Pwede ko ba malaman anu ngyari sa doctor cash? May nagtext din kasi saken ngayon may bench warrant daw ako. Nadelay lng naman payment pero magbbayad din.
hi. i have the same concern, it was march 2016 n mag loan ako d doctorcash, i got 1600 something from them, then nawalan ako ng work and so i was not able to pay my febt last nov 2016 they emailed me saying that if i don’t pay my remaining balance they will have to take legal actions, but still having issues with payment since hnd prin ako stable s job, then feb 2017 came and someone from a law firm told me to pay kasi kung hnd they will contact the brgy officials and demand a payment my amoynt from 1600 turned 27,000 then nawalan then after that hnd na sila tumawag, i tried to reach the girl from the law firm to check the status of my debt then wala reply, suddenly just last wednesday they called me demanding to make a payment of 34,000+ and hnd pwede installment kc pag hnd ko binayaran agad s certain day na sinabi nila they will do legal visit with brgy and theres a possibility of filing a case against me abd estafa daw yun, i talked to the ‘atty’ and she told me na cover daw tun ng estafa since nag declare ako na kaya ko magbayad, i find it a bit suspicious kasi hnd naman ako nag issue ng cheke or anything.
Hi Karen. Ask ko lang, anu nangyari dun sa DoctorCash, did they visit you? same din kc sa akin, pero brgy ang sinabi nya na pupunta sa house, they told me that they will file an estafa case against me pag hnd ko nabayaran agad yung remainjng balance ko s doctor cash, i wanna hear from you kung ano na balita.
Gud am po atty. Ask ko lng po kung totoo bang pagnamatay n ang taong nagloan. Automatically burado n ang utang nya kahit hnd pa cla (lending) nakapagkaltas? Tnx po pls! Reply in my email add
good evening po, nag inquire po ako sa lending company dito po sa paco, nung nandon na po ako sinabe po nla n mag fill up daw po ako ng form para maprocess daw po, after po mag fill up po nag insist po sila na mag cash advance , di ko pumayag but insist po nla and i decided na 5k lng kasi di pa naman po ako decided pa talaga, after a week po irereturn ko na po yung pera 5k hindi po pumayag ang lending na ireturn ang 5k they was advicing me na bago po mareturn yung pera ay i release ko po muna po yung actuall amount ng loan para maprocess po yung cancellation, and after po nun bumalik po ako sa date na pinababalik po nla ako, but hindi po nla tinangap yung pera, kahit po may charges and penalty nabuo ko po naman. ngayon po ayaw nla tangapin yung cancellation of loan. pano po ba ang dapat kong gawin, salamat.
nag inquire din po ako sa lending sa my paco manila. gnun din pinag advance ako en pirma ng mga papel. after 2days bumalik ako pra isoli ung n advance ko en pinapacancel ko po sna application ng lending ko. sabi po nila dko n daw pwd icancel un kc nka pirma npo ako sknila. ano po mgnda kong gawin? ilang days po b bgo icancel ung application for lending.
Hi po.ano pong nangyari na sa pinacancel nyo?
Magandang umaga po. Ako po ay nag loan sa isang lending company year 2010 or 2011. Sa pagkaka alam ko po ay nkabyad n ako sa knila dahil may collector n pumunta s akin. Lasy year po may nag punta dto galing sa kumpanya nila at sinisingil ako ng nasa mahigit 100k dhil daw sa interest kya lumaki. Sbi ko s loob ng mahabang panahon hindi nila ako ininform n may balanse p ako di naman ako umalis sa trabaho o kaya lumipat ng bahay. Di ko rin kasalanan kung ang tauhan nila ay nagluko pala at di ipinapasok ang bayad ko. Di ko naman din po alam na hindi pumapasok ang byad ko. Meron po b akong karapatan? O wala po akong magagawa kung hindi mag byad ng sinisingil nila s akin. S loob ng apat n taon di naman po sila nag inform tapos biglang pupunta sa akin at maniningil ng pagkalaki laki. Maaari po bang maghulog lamang ng kya ko lamang dahil wala akong maipakita sa kanila n record o resibo ng pinag bayaran ko nuon di ko naman po alam na hindi ipinapasok ang hulog ko?
Purchased a 2015 Honda Beat Scooter at 74,000.00 pesos Dec 2015 through TRANSFARM FINANCE & LEASING CO.INC. No finance contract was given to me prior to the transaction as required by law. Down payment was 20,000 pesos with monthly payments of 6,004 pesos for 1 year. Paid 10,000 pesos every month until July 2016 at 2.2 %. By my calculator I have spent 90,000 pesos for a 74,000 peso scooter. I have no finance contract, no summary computation, no title and no permanent metal license plate. The scooter is now paid in full. I have no clean title, no nothing but excuses from office in Mandaue. I am holding back July final payment until I can get my correct documentation. Every month the office has ignored my requests, made excuses and now say legal counsel will contact me within the week. I am being told I am the first customer that has asked for a copy of the finance contract and computation summary and the company has had 7 months to provide with the papers and have failed. What is wrong with the way this company conducts business (Truth in Lending Act) and why is this company still in business? The company had 7 months to correct their practice but it is easier to lie, cheat and deceive the consumers over and over again without just consequences or justice for the consumers.
Hi atty may tatanong po ako.nag abroad po ako noong 2008 sa taiwan.pro nag shutdown po ang company na pi nag tatrabaho an ko dun pi na uwi po kami lahat.nag loan po ako sa isang leanding firm amount 50k.tapos ngayun lng po cla nag bigay ng notice na bayaran ko daw.umabot na ng 400k na po.pls help me atty.salamat po.
Hi atty tanong ko lang po. may loan ako sa phillife hindi pa fully ngaun pero bayaran ko sana ung remaining months ung interest po ba ng ifully paid ko ay bayaran ko pa rin? kasi hindi tinanggal e nacash ko before sa due date na may 2018.
8% a month is usury. 98% in a year?No wonder lending firms blooms. The poor becomes poorer and the rich becomes richer. These kind of loans are almost impossible to pay back! I just wonder what kind of mind these lagislators posses, or is because they get the lions share? 8% is maybe just the minimum. How about the maximum? Interest earning interest. Wake up lagislators ! You are strangling the neck of the poor mass.