Truth in Lending Act (RA 3765) (TILA)

Truth in Lending Act (RA 3765) (TILA) 1/ PURPOSE 2/ What is the purpose of Truth in Lending Act (TILA)? To protect persons from a lack of AWARENESS of the TRUE COST of CREDIT and to prevent the uninformed use of credit. 3/ OBLIGATION OF CREDITORS TO PERSON TO WHOM CREDIT IS EXTENDED 4/ When does TILA apply? It applies to creditors who extend LOANS, sales on INSTALLMENTS and other credit transactions. 5/ What are the items required to be disclosed? 1. In CREDIT SALES: a) Cash PRICE or delivered price; b) Credit for down‐payment or trade-in; c) Total AMOUNT to be financed; d) CHARGES not incident to the sale; 6/ e) FINANCE charges - amounts to be paid by the debtor incident to the extension of credit such as interests, discounts, collection fees, credit investigation fees and attorney's fees; 7/ f) PERCENTAGE of the finance charges or the amount to be financed; g) Effective INTEREST rate; h) REPAYMENT program; and i) DEFAULT or delinquency charges or late payments (Sec. 4, TILA) 8/ 2. In CONSUMER LOANS: