Truth and Transparency in Lending Act

The State protects its citizens from a lack of awareness of the true cost of credit to the consumer by assuring a full disclosure of such cost and other terms and conditions with a view preventing the uninformed use of credit.

As such, a disclosure statement is an attachment to the contract. It shall include, at a minimum, the following information:

  1. Total amount to be financed.
  2. Finance charges and all other charges incident to the loan.
  3. Net proceeds of the loan.
  4. Schedule of payments.
  5. The percentage that the finance charge bears to the total amount to be financed expressed as an Effective Interest Rate (EIR).
Important Notice

The borrower has the right to demand a copy of the disclosure statement of the required loan.