THE Department of Trade and Industry (DTI) has announced the prohibition of an “installment only” basis as an exclusive mode of payment for dealerships of either motorcycles or cars in a new department administrative order (DAO).
According to Ines Cajegas, DTI-Cebu Consumer Protection Division chief, the new DTI DAO emanated from the numerous complaints nationwide against motorcycle dealers which are offering sale-by- installment only.
“(Some dealers) won’t accept cash basis transactions. This fact reached the Senate, and during the Senate inquiry, the DTI was made to act fast and regulate this,” she said in a text message.
After a study and public consultation, the DTI came up with a new DAO, anchoring on Article 50 - 52, on Deceptive, Unfair and Unconscionable Sales Act or Practice of the Consumer Act of the Philippines (RA 7394).
Under the DTI Administrative Order 21-03, “no person or company engaged in the sale or offer for sale of consumer products and services shall impose an ‘installment only’ mode of payment to consumers.”
The DTI said consumers shall be given the option to pay in cash, in installment or combination of both.
Genesis Agol, sales consultant of Hyundai Cebu North, said they have always given both the installment and full payment basis options to their consumers.
Agol said they put into consideration first what their clients want and their capacity to avail themselves of the units. (JOB)