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  • Truth and Transparency in Lending

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    Joshua Assin
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    The document discusses enhancing transparency in lending by assuring full disclosure of credit costs and terms to prevent uninformed use. A disclosure statement must be attached to all loan contracts and include at minimum: 1) total amount financed, 2) all finance and incidental charges, 3) net loan proceeds, 4) payment schedule, and 5) effective interest rate as a percentage of the total financed amount. Borrowers have a right to demand a copy of the disclosure statement.

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    TRUTH-AND-TRANSPARENCY-IN-LENDING (1)

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    The document discusses enhancing transparency in lending by assuring full disclosure of credit costs and terms to prevent uninformed use. A disclosure statement must be attached to all loan contracts and include at minimum: 1) total amount financed, 2) all finance and incidental charges, 3) net loan proceeds, 4) payment schedule, and 5) effective interest rate as a percentage of the total financed amount. Borrowers have a right to demand a copy of the disclosure statement.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    14 views1 page

    Truth and Transparency in Lending

    Uploaded by

    Joshua Assin
    The document discusses enhancing transparency in lending by assuring full disclosure of credit costs and terms to prevent uninformed use. A disclosure statement must be attached to all loan contracts and include at minimum: 1) total amount financed, 2) all finance and incidental charges, 3) net loan proceeds, 4) payment schedule, and 5) effective interest rate as a percentage of the total financed amount. Borrowers have a right to demand a copy of the disclosure statement.

    Copyright:

    © All Rights Reserved
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    of 1

    TRUTH AND TRANSPARENCY IN LENDING

    Enhanced Implementation of the Truth in lending Act

    (Republic Act 3765)

    The State protects its citizens 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 thee loa contact.

    It shall include, at a minimum, the following information:

    1) Total amount to be financed


    2) Finance Charges and all other charges incident to the loan
    3) Net Proceeds of the loan
    4) Schedule of payments
    5) The percentage that the finance change 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

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