JULIAN ROSE V.

PARAISO
BSAIS-21

Activity for Module 4: TRUTH IN LENDING ACT

ANSWER THE FOLLOWING QUESTIONS:

1. What is the policy behind the Truth in Lending Act??

 The State arranges to secure its citizens from a need of mindfulness of the
genuine taken a toll of credit to the client by guaranteeing a full revelation of such
taken a toll with a see of anticipating the ignorant utilize of credit to the disservice
of the national economy

2. Who are under the Truth in Lending Act??covered

 Consumers are protected under the Truth in Lending Act (TILA) when interacting
with lenders and creditors. Most types of consumer credit, including closed-end
and open-end credit, are covered by the TILA. The Truth in Lending Act (TILA)
governs what information lenders must provide to customers about their products
and services.

3. What are the information required to be furnished to the debtor or borrower?

The cash price or delivered price of the property or service to be acquired. The
amounts, if any, to be credited as down payment and/or trade-in. The difference
between the amounts set forth under clauses and the charges, individually itemized,
which are paid or to be paid by such person in connection with the transaction but which
are not incident to the extension of credit. The total amount to be financed and the
finance charge expressed in terms of pesos and centavos. The percentage that the
finance bears to the total amount to be financed expressed as a simple annual rate on
the outstanding unpaid balance of the obligation.

4. When and how should this information be furnished to the debtor or borrower?
 If you are a debt collector furnishing information to a CRA about the accounts of
a creditor, you must report the date of delinquency given to you by the
creditor. This "date of delinquency" determines how long the debt can be
reported on a consumer's credit report. Generally, a CRA may report a
delinquent debt for seven years from the date of delinquency. If the debt was
discharged in bankruptcy, however, a CRA may report it for 10 years.
 If the creditor didn’t report the date of delinquency, you have two options: (a)You
may establish and follow reasonable procedures to determine the date from the
original creditor or another reliable source, or (b) If you can’t determine the date,
you may establish and follow reasonable procedures to ensure that the reported
date of delinquency is a date before the account was referred to collection or
charged off