TILA Test Bank| Questions and correct answers| 2026

TILA Test Bank| Questions and correct answers| 2026 [T/F] The Truth in Lending Act or the Republic Act No. 3765 aims to protect the public from lack of awareness of the true cost of credit by requiring from the creditor the disclosure of full information incident to a credit transaction. TRUE [T/F] When the creditor failed to disclose the information required by R.A 3765, the credit remains valid and enforceable. TRUE [T/F] The imposition of finance charges is considered valid and enforceable despite it not being disclosed in the disclosure agreement. FALSE [T/F] Penalty charges not stated in the disclosure statement will be voided even though it is disclosed in a promissory note. FALSE [T/F] Aside from the cash price or delivered price of the property or service to be acquired and the required down payment or trade-in if any, the creditor must also disclose the difference of the mentioned disclosure requirement. TRUE [T/F] One of the remedies that a debtor can afford upon the creditor's failure to disclose is to file a civil case for recovery of damages in the amount of Php 100 or of twice the finance charged required by the creditor whichever is lower, but not to exceed P2,000.