Truth and Transparency in Lending Enhanced Implementation of the Truth in Lending Act (Republic Act 3765)
The State protects its citizen from a lack of awareness of the true cost of credit to the customer by assuring a full disclosure of such cost and other terms and conditions with a view of preventing the uninformed use of credit.
As such, a disclosure statement is a required attachment to the loan contract. It shall include, at a minimum, the following information:
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Total amount to be financed
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Finance Charges and all other charges incident to the loan
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Net proceeds of the loan
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Schedule of Payments
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The percentage that the finance charge bears to the total amount to be financed expressed as an Effective Interest Rate (EIR)
Important Notice: The borrower has a right to demand a copy of the disclosure statement.