BSA 3-4 - Quiz 4 - Group 3

Truth in Lending Act
1. Mr. X is an agent of a car-dealing company. Mr. Y is thinking of buying a car for his wife and
he will buy it on credit. Since Mr. Y was so excited for the commission that he will receive
for selling the car, he forgot to disclose information like finance charges and the annual
percentage rate. Did Mr. Y violate the "Truth in Lending Act?"
Yes
Maybe
No
It will be up to the Board to decide
2. Mr. Z is the owner of the car-dealing company. It is the company's policy to fully disclose
prior to the consummation of the transaction a clear statement in writing every
information with regards to any kind of sale. Because of Mr. Y's negligence, Mr. Z is being
sued by Mr. X. Did Mr. Z violates the "Truth in Lending act?"
Yes
Maybe
No
3. Mr. X bought the car during April 7,2020. After a year and a half, he then realized that the
employee of the car-dealing company never disclosed to him the terms of the contract.
Can Mr. X still recovers such a penalty?
Yes
Maybe
No

4. How long is the period that the action to recover such a penalty must be taken?
2 years
1 year
6 months
1 year and 6 months
5. It is a person engaged in the business of extending credit (including any person who as a
regular business practice make loans or sells or rents property or services on a time, credit,
or installment basis, either as principal or as agent) who requires as an incident to the
extension of credit, the payment of a finance charge.
Debtor
Buyer
Board
Creditor
6. It means any individual, corporation, partnership, association, or other organized group of

persons, or the legal successor or representative of the foregoing, and includes the
Philippine Government or any agency thereof, or any other government, or of any of its
political subdivisions, or any agency of the foregoing
Debtor
Buyer
Person
Creditor
7. The declared policy behind the law is to protect the people from lack of awareness of the
true cost of credit by assuring full disclosure of such cost, with a view of preventing the
uninformed use of credit to the detriment of the national economy.
True
False
8. XYZ Corporation bought ten (10) units of Honda Civic from CCC
Corporation. ABC Bank granted a loan to XYZ Corporation which executed a
financing agreement which provided for the principal amount, the installment
payments, the interest rates and the due dates. On due dates of the installment
payments, XYZ Corporation was asked to pay for some handling charges and other
fees which were not mentioned in the Financing Agreement. Can XYZ Corporation
refuse to pay the same?
No, because handling charges and other fees are usual in certain banking transactions.
Yes, because ABC Bank is required to provide XYZ Corporation not only the amount of
the monthly installments but also the details of the finance charges as required by the Truth
in Lending Act.
No, because the Finance Agreement is a valid document to establish the existence of
the obligation.
Yes, because legally, finance charges are never allowed in any banking transactions.
9. ABC Corporation is engaged in lending funds to small vendors in various public markets.
To fund the lending, ABC Corporation raised funds through borrowings from friends and
investors. Which statement is most accurate?
ABC Corporation is a bank
ABC Corporation is a quasi-bank
ABC Corporation is an Investment Company
ABC Corporation is none of the above
10. Entities engaged in the lending of funds obtained in the form of deposits from the public.
Banks
Quasi Banks
Pawnshop
Commercial Banks
11. Any punishment or penalty under this law shall apply also to the Philippine
Government or any agency or any political subdivision thereof.
True
False
12. It includes interest, fees, service charges, discounts, and such other charges incident to
the extension of credit as may be prescribed by the Monetary Board of the Bangko
Sentral ng Pilipinas through regulations.
Interest Charges
Finance Charges
Service Revenue
None of the above
13. Republic Act No. 3765 also known as "Truth in Lending Act" was approved on *
July 22, 1963
July 12, 1963
June 22, 1963
May 12, 1963
14. The Truth in Lending Act promotes disclosure of loan terms.

True
False
15. Any creditor shall furnish to each person to whom credit is extended, prior to the
consummation of the transaction, a clear statement in writing with the following
information except:
The cash price or delivered price of the property or service to be acquired
Down payment and/or trade in, if there is any;
The sum of the cash price/service and the down payment/trade in
Non-finance charges
16. Give at least three transactions that are covered by Truth Lending Act
- Loan, Mortgage, Deed of Trust, Rental-purchase contract, Conditional Sales Contract,

Leasing of Property, Purchase or other acquisition of, or any credit upon the security
if, any obligation of claim, arising out of any of the foregoing, Option, Demand, lien,
pledge, or other claim against, or for the delivery of, property or, money
17. Who governs all the registered banks situated in the Philippines?
Bank of Commerce
Department of Finance
House Commitee on Banks and Financial Intermediaries
Bangko Sentral ng Pilipinas

18. Who is the recent governor of Bangko Sentral ng Pilipinas?
Nestor Espenilla
Benjamin Diokno
Carlo Katigbak
Carlos Dominquez III
19. The penalty/ies that constitutes willful violation of RA 3765 is/are?
P1,000 to P5,000
not more than 1,000
Imprisonment for 1 to 2 years
Not more than P5,000 but more than P2,000

BSA 3-4 - Quiz 4 - Group 3

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Truth in Lending Act

It will be up to the Board to decide

It will be up to the Board to decide

It will be up to the Board to decide

1 year and 6 months

6. It means any individual, corporation, partnership, association, or other organized group of

ABC Corporation is a bank

ABC Corporation is a quasi-bank

ABC Corporation is an Investment Company

ABC Corporation is none of the above

None of the above

July 22, 1963

July 12, 1963

June 22, 1963

May 12, 1963

14. The Truth in Lending Act promotes disclosure of loan terms.

The cash price or delivered price of the property or service to be acquired

Down payment and/or trade in, if there is any;

The sum of the cash price/service and the down payment/trade in

- Loan, Mortgage, Deed of Trust, Rental-purchase contract, Conditional Sales Contract,

House Commitee on Banks and Financial Intermediaries

Bangko Sentral ng Pilipinas

Carlos Dominquez III

19. The penalty/ies that constitutes willful violation of RA 3765 is/are?

not more than 1,000

Imprisonment for 1 to 2 years

Not more than P5,000 but more than P2,000

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