Article 89Supplement v1, p. 89

COMMERCIAL LAWS SUPPLEMENT

d) the finance charge expressed in terms or pesos and

centavos;

e) the effective interest rate;

f) the percentage that the finance charge bears to the

total amount to be financed expressed as a simple annual

rate on the outstanding unpaid balance of the obligation;

g) the default, delinquency or similar charges payable in

the event of late payments;

h) a description of any security interest held or to be held

or

to

be

retained

or

acquired

by

the

creditor

in

connection with the extension of credit and a clear

identification

of

the

property to which the security

interest relates.

ARTICLE 143. Form and Timing of Disclosure . — All

disclosures required under this Act shall be made clearly

and conspicuously in writing before the transaction is

consummated.

ARTICLE 144. Periodic Statement of Charges . — The

periodic

statement

transmitted

by

the

creditor

in

connection with any extension of consumer credit other

than under an open-end consumer credit plan, shall set

forth the following information:

a) the simple annual rate;

b) the effective interest rate;

c) the date by which, or the period (if any) within which

payment must be made in order to avoid additional

finance charges;

d) method of determining the balance upon which the

finance charge may be imposed.

ARTICLE 145. Exempted Transaction . — The foregoing

requirements on consumer credit transactions shall not

apply to the following credit transactions:

a) those involving extension of credits for business or

commercial

purposes,

or

to

the

Government

and

governmental agencies and instrumentalities, juridical

entities or to organizations;

b) those in which the debtor is the one specifying the

definite

set

of credit terms such as bank deposits,

insurance

contracts,

sale

of

bonds

or

analogous

transactions.

ARTICLE 146. Sale of Consumer Products On Installment

Payment . — In a consumer credit sale other than one

pursuant to an open-end credit plan, the obligation of the

consumer to whom credit is being extended shall be

evidenced by a single instrument which shall include, in

addition to the disclosures required by this act, the

signature of the seller and the person to whom credit is

extended, the date it was signed, a description of the

property

sold

and

a

description

of

any

property

transferred as a trade-in. The instrument evidencing the

credit shall contain a clear and conspicuous typewritten

notice to the person to whom credit is being extended

that:

a) he should not sign the instrument if it contains any

blank space;

b)

he

is

entitled

to

a

reasonable

return

of

the

precomputed finance charge if the balance is prepaid;

and

c) he is entitled to an exact, true copy of the agreement.

In cases where the instrument will be sold at a discount

to a bank, financing company or other lender, the said

transferee shall be subject to all claims and defenses

which the debtor could assert against the seller of

consumer products obtained hereto or with the proceeds

thereof.

ARTICLE 147. Penalties . — Any creditor who in connection

with any credit transaction fails to disclose to any person

any

information

in

violation

of this Chapter or the

Implementing rules and regulations issued thereunder

shall be liable to such person in the amount of One

thousand pesos (P1,000.00) or in amount equal to twice

the

finance

charge

required

by

such

creditor

in

connection with such transaction, whichever is greater,

except that such liability shall not exceed Three thousand

pesos (P3,000.00) for any credit transaction and actual

damages

with

the

non-disclosure

of

the

required

information. Action to recover such penalty may be

brought by such person within one (1) year from the date

of

the

occurrence

of

the

violation

in any court of

competent jurisdiction.

TITLE V The National Consumer Affairs Council

CHAPTER I Establishment and Composition

ARTICLE 148. National Consumer Affairs Council . — To

improve

the

management,

coordination

and

effectiveness

of

consumer

programs,

a

National

Consumer Affairs Council is hereby created, hereinafter

referred to as the "Council".

ARTICLE

149.

Composition .

—

The

Council

shall

be

composed

of

representatives

from

the

following

government agencies and non-government agencies:

a) Department of Trade and Industry;

b) Department of Education, Culture and Sports;

c) Department of Health;

d) Department of Agriculture;

e) four (4) representatives from consumer organizations

of nationwide base to be chosen by the President from

among the nominees submitted by the various consumer

groups in the Philippines;

f) two (2) representatives from business/industry sector to

be chosen by the President from among the nominees

submitted by the various business organizations.

ARTICLE 150. Chairman ; Functions . — The Council shall be

headed and presided by a Chairman who shall be elected

by

the members from among themselves. He shall

establish,

with

the

concurrence

of

the Council, the

policies,

procedures

and

standards

to

govern

the

implementation and interpretation of the functions and

duties of the Council.

ARTICLE 151. Per Diems of Members . — The members of

the Council shall be entitled to an allowance of Five

hundred pesos (P500.00) per meeting actually attended

but not more than Two thousand pesos (P2,000.00) a

month.

ARTICLE 152. The Secretariat . — The Council shall appoint

an Executive Director who shall assist the Chairman and

act as Secretary of the Council. The Department of Trade

and Industry shall provide the Secretariat which shall

assist the Council in the effective performance of its

functions.

CHAPTER II Powers and Functions

ARTICLE 153. Powers and Functions . — The Council shall

have the following powers and functions:

a) to rationalize and coordinate the functions of the

agencies

charged

with

consumer

programs

and

enforcement of consumer related laws to the end that an

effective, coordinated and integrated system of consumer

protection,

research

and

implementation

and

enforcement of such laws shall be achieved;

b)

to

recommend

new

policies

and

legislation

or

amendments to existing ones;

c) to monitor and evaluate implementation of consumer

programs and projects and to take appropriate steps to

ensure that concerned agencies take appropriate steps to

comply with the established priorities, standards and

guidelines;

d) to seek the assistance of government instrumentalities

in the form of augmenting the need for personnel,

facilities and other resources;

© Compiled by RGL

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