• BSP steps up consumer protection


    The Bangko Sentral ng Pilipinas (BSP) had assessed the compliance of its 85 covered institutions on the updated rules implementing the “Truth in Lending Act,” or Republic Act 3765.

    In line with its advocacy on consumer protection, the central bank said that it now takes a closer look on covered institutions’ compliance with the updated rules.

    Covered institutions refer to banks, nonbanks financial institutions and BSP-registered credit-granting institutions that are engaged in lending activities.

    As of June 30, the BSP said that of its 85 covered institutions, 18.8 percent are verified to be in full compliance, 60 percent have substantially complied and 21.2 percent are found to be noncompliant.

    “Those with noted deficiencies and lapses have already initiated corrective measures such as enhancing their respective MIS [management information service], redesigning disclosure statements and formulating pertinent policies and procedures, among others. The status of these corrective measures will be verified in the succeeding on-site examinations/inspections/spot-checking,” it stated.

    The BSP noted that the assessment of individual covered institution’s compliance is conducted during on-site examination/inspection/spot-checking by BSP’s examination departments.

    It explained that the overall assessments are categorized in three types based on the degree of compliance: full compliance, substantial compliance and noncompliance.

    The degree of compliance of each covered institution is based on four criteria such as the manner of interest computation; the manner of computation and disclosure of effective interest rate; the degree of disclosure of required information, including the poster requirement; and the provisions of adequate policies and procedures to ensure consistent compliance.

    In 2011, the BSP updated the rules and regulations implementing the Truth in Lending Act through the issuance of Circulars 730, 754 and 755.


    Please follow our commenting guidelines.

    Comments are closed.