TILA

• This act requires a creditor to fully disclose to the debtor the true cost of credit
• True or false.

  The debtor and the lending institutions do not deal on an equal footing and this law was intended to protect the public from hidden or undisclosed charges on their loan obligations, requiring a full disclosure thereof by the lender.

  True.
• Board means the Monetary Board of Central Bank of the Philippines.
• The creditor shall furnish the debtor with a disclosure statement in writing containing the ff:

  1. Cash price
  2. DP or trade-in, if any
  3. Difference b/w 1 & 2
  4. Non-finance charges
  5. Total amount to be financed
  6. Finance charges
  7. Simple annual rate
• T or F

  The disclosure statement must be furnished after the consummation of the transaction.

  False.
• In violation of this, the creditor shall be liable to the person in the amount of P100 or in an amount equal to twice the finance charged required by such creditor, whichever is higher. Except that it shall not exceed P2,000 on any credit transaction.
• Action to recover such penalty may be brought by such person within one year from the date of occurrence of the violation.
• Any person who willfully violates any provision of this act or any regulation issued thereunder shall be fined by not less than P1,000 or more than P5,000 or imprisoned for no less than 6 months nor more than 1 year or both.
• Penalty under this act shall not apply to the Philippine Government.