in accordance with the truth in lending act

7653 (the “New Central Bank Act”) for purposes of relending or purchasing of receivables and other obligations. (c) Quasi-Bank shall refer to a non-bank financial institution authorized by the BSP to engage in quasi-banking functions and to borrow funds from more than nineteen (19) lenders through the issuance, endorsement or assignment with recourse or acceptance of deposit substitutes as defined in Section 95 of Republic Act No. (b) Debtor shall refer to a borrower or person granted a loan by the lending company.

The term shall be synonymous with lending investors. It shall not be deemed to include banking institutions, investment houses, savings and loan associations, financing companies, pawnshops, insurance companies, cooperatives and other credit institutions already regulated by law. (a) Lending Company shall refer to a corporation engaged in granting loans from its own capital funds or from funds sourced from not more than nineteen (19) persons.

For purposes of implementing this Act, the following definitions shall apply: It is hereby declared the policy of the State to regulate the establishment of lending companies and to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credit to prevent and mitigate, as far as practicable, practices prejudicial to public interest and to lay down the minimum requirements and standards under which they may be established and do business. This Act shall be known as the “Lending Company Regulation Act of 2007”. Begun and held in Metro Manila, on Monday, the nineteenth day of February, two thousand seven.ĪN ACT GOVERNING THE ESTABLISHMENT, OPERATION AND REGULATION OF LENDING COMPANIESīe it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

In accordance with the truth in lending act