Predatory Lending

Script

[0:00] HOOK — 'When the loan is the trap.'
[0:05] You've seen the ads. You've signed the contract. Pero alam mo ba ang totoo?
[0:12] Daily interest of 0.8% is not 0.8% per year — it's ~292% APR. (RA 3765 (Truth in Lending Act), §4 — APR disclosure required.)
[0:25] Bago ka pumirma, hingin ang itemized fees. Walang 'processing fee' na biglaan.
[0:35] A loan contract you can't keep a copy of is non-compliant.
[0:45] May libreng tools sa labanph.org. Free letter builder. Free filing guide.
[0:55] May reklamo ka? File mo. Hindi ka nag-iisa.
[1:00] CTA: labanph.org — boses ng kumakayod.

[0:00] HOOK — When the loan is the trap.
[0:05] 0.8% kada araw mukhang maliit. Beses-292 kapag binilang per year. Yan ang dapat sabihin sa contract.
[0:12] All fees must be itemized in writing before signing.
[0:20] Free tools sa labanph.org. Walang bayad para mag-file.
[0:28] CTA: tag mo si labanph kapag may reklamo ka.

Predatory Lending — When the loan is the trap.

TILA, BSP Circular 1048, Consumer Act protections — and what predatory contracts ignore.

Top 3 facts you should know:
1. Daily interest of 0.8% is not 0.8% per year — it's ~292% APR.
2. All fees must be itemized in writing before signing.
3. A loan contract you can't keep a copy of is non-compliant.

Free filing tools: labanph.org
DM @labanph for help with your case.

10 Talking Points (cited to law)

1. 01

   Daily interest of 0.8% is not 0.8% per year — it's ~292% APR.

   Source: RA 3765 (Truth in Lending Act), §4 — APR disclosure required.

   0.8% kada araw mukhang maliit. Beses-292 kapag binilang per year. Yan ang dapat sabihin sa contract.

2. 02

   All fees must be itemized in writing before signing.

   Source: RA 3765 §4(a); BSP Circular 730 §X304.7.

   Bago ka pumirma, hingin ang itemized fees. Walang 'processing fee' na biglaan.

3. 03

   A loan contract you can't keep a copy of is non-compliant.

   Source: RA 3765 §6 — borrower entitled to copy.

   May karapatan kang humawak ng kopya ng contract. Hindi pwedeng ipa-scroll lang sa cellphone.

4. 04

   Effective interest rate (EIR) must be disclosed, not just nominal.

   Source: BSP Circular 730 — EIR disclosure standard.

   Tanungin: 'Ano ang EIR?' Yan ang totoong gastos ng utang.

5. 05

   Hidden 'service charges' that bring effective rate above ceiling = violation.

   Source: BSP Circular 1133-2021 — interest rate cap on small consumer loans.

   May limit ang BSP sa consumer loans. Pag binibira-bira ng service fees, baka labag na.

6. 06

   Misleading loan amounts (₱5k advertised, ₱4k disbursed) violate consumer law.

   Source: RA 7394 (Consumer Act) Art. 50 — false advertising.

   Pag iba ang naka-ad sa natanggap mo, dapat kang magreklamo sa DTI.

7. 07

   Auto-debit before due date without disclosure is unauthorized.

   Source: BSP Circular 1048 §X705 — consumer protection in lending.

   Hindi pwedeng kunin sa account mo bago ang due date kung hindi nakasulat.

8. 08

   Threats of jail for non-payment of consumer loans are illegal.

   Source: BP 22 covers bad checks only; no debtor's prison in PH (1987 Constitution Art. III §20).

   Walang jail sa utang. Pag tinatakot ka, harassment yan.

9. 09

   Penalty interest stacked on principal must be disclosed up front.

   Source: RA 3765 §4(d); BSP Circular 730.

   Yung penalty fee, dapat sinabihan ka bago ka pumirma — hindi sorpresa pag delayed ka.

10. 10

    Small claims under ₱400,000 require no lawyer — file it yourself.

    Source: AM No. 08-8-7-SC (Rules of Procedure for Small Claims Cases).

    Hanggang ₱400k, pwede mong isampa nang mag-isa. Free template sa labanph.org.

Cite primary law/circular when on camera. Avoid naming specific individuals unless they are public officers / directors of record. Frame as 'company X violated rule Y'; never as 'X is a scammer'.