Quantcast
Latest Stories

Tighter transparency rules cover pawnshops—BSP

By

The Bangko Sentral ng Pilipinas said pawnshops, like banks, are required to adopt the enhanced transparency rules on interest rates charged to customers.

In one of its latest circulars, the BSP said pawnshops were covered by the updated implementing guidelines for the Truth in Lending Act. The coverage of more financial institutions will ensure the stability of the entire financial sector, officials said.

The recently released guidelines require financial institutions to properly disclose the interests and other fees they charge on borrowing customers. In the case of credit-card loans, banks must attach to the customers’ monthly billing statements information sheets on interest rates and fees.

Circular 787-2013, which the BSP issued last week, requires pawnshops to stamp on the pawn tickets they issue to customers all relevant information on the effective interest rates they charge, including how the said interest was computed.

They may also attach to the pawn ticket a separate sheet containing information on the effective interest rate.

The BSP said this rule was good for one year. It said that after one year, when pawnshops have already disposed all the existing pawn tickets in their inventory, they would be required to use the newly prescribed standard form for disclosure to customers of interest rate and other related information.

“The Monetary Board allowed pawnshops, for a period of one year, to stamp on their existing inventory of pawn tickets, or print on a separate sheet of paper to be attached on pawn tickets, information about their effective interest rates,” the BSP said in the circular.

Officials said the enhanced guidelines for the Truth in Lending Act were meant to help prevent a financial crisis similar to what had happened in advanced economies.

Pawnshops are considered vital players in the country’s financial sector. They help individuals meet their immediate needs for short-term cash.

The pawnshop industry in the Philippines has a network of nearly 17,000. Of these, about 10,000 are engaged solely in the pawning business. The others also operate auxiliary businesses, such as money changing, remittance facilitation and bills payment facilitation.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Bangko Sentral ng Pilipinas , Business , Interest Rates , pawnshops , transparency rules , Truth in Lending Act



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • DOH asks co-passengers of OFW carrier to test for MERS-CoV
  • ‘Shouldn’t we move?’ Ferry evacuation under scrutiny
  • 5.5-magnitude quake hits Sultan Kudarat
  • Passengers denied chance to escape sinking South Korea ferry
  • Firetruck rams California eatery; 15 injured
  • Sports

  • PH youth boxers off to stumbling start in AIBA World tilt
  • Durant has 42, Thunder beat Pistons 112-111
  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Federer would skip tennis to be with wife, newborn
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • Business

  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • Technology

  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace