THE Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has expanded the mode of disclosing relevant information required under the Republic Act 3765, also known as the “Truth in Lending Act” (TLA).
The enhanced law now allows disclosure through various channels of communication, including educational videos and social media and is meant to encourage BSP-supervised financial institutions (BSFIs) to be more creative, efficient and effective in disseminating the salient TLA information, while adhering to consumer protection standards and social media risk management guidelines.
It also emphasizes full disclosure and utmost transparency, particularly on the cost of credit granted by the BSFIs, as critical elements that empower consumers to make objective comparison of banking products and informed financial decisions.
The enhanced disclosure requirement now applies to banks, quasi-banks, non-stock savings and loan associations, pawnshops, non-bank financial institutions, as well as banks/non-banks operating as credit card issuers. (PR)