CAGAYAN DE ORO CITY, Philippines – Financial entities engaged in lending business are reminded not to collect from borrowers while the community quarantine protocols are still in place, the Securities and Exchange Commission-Cagayan de Oro (SEC-CDO) said Friday, May 22.
“I would like to encourage everyone to report financing and lending companies who are still asking for payments to all principal loans and amortizations despite the directive provided by the Commission in response to this pandemic,” said lawyer Renato Egypto, SEC-CDO director.
In the directive, all financing companies, lending firms, and microfinance non-government organizations shall apply the mandatory 30-day grace period to all loans with principal or interest falling due between March 17 and May 31.
On May 6, the Inter-Agency Task Force for the Management of Emerging Infectious Disease issued Resolution 33 which directs all banks, quasi-banks, financing companies, lending providers, and other financial institutions to count the grace period from the respective due dates of qualified loans or until such time that the community quarantine is lifted, whichever is longer.
All covered institutions, the resolution noted, shall not impose interest on fees and other charges to future payments or amortizations. Borrowers may also pay the interest accrued during the grace period on a staggered basis over the remaining life of the loan.
“Any violation or noncompliance shall be dealt with to the full extent of the law,” Egypto warned as he advised that complaints may be done by completing a form on SEC’s website.
SEC, Egypto shared, has been investigating companies that allegedly refused to comply with the Bayanihan Act, its Implementing Rules and Regulations, and other applicable laws, rules, and regulations. (davaotoday.com)