CREDIT Information Corp. (CIC), the country’s public credit registry and credit information repository, supports the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP) in establishing a cap for interest rates and other fees for specific loans, offered by Loan Companies (LCs), Finance Companies (FCs) and their Online Lending Platforms (OLPs).
“The CIC is one with the SEC and the BSP to protect the welfare of Filipino borrowers against unsustainable interest rates, resulting from excessive hedging and risk provisioning during the pandemic while improving access to credit as we work towards a full economic recovery,” said Ben Joshua Baltazar, Chairman and CEO of CIC.
PASB originally issued prescribed caps on interest rates and other charges for specific loans, offered by LCs, CFs, and PLOs, through its Circular Memorandum Series No. 1133 of 2021. Loans covered by the caps are general purpose unsecured loans that do not exceed the amount of 10,000 pesos and the loan term is up to four months.
Baltazar further explains how this BSP and SEC initiative is linked to the CIC’s call to break the negative stigma surrounding credit.
According to the 2019 Financial Inclusion Survey, published by BSP, of the 33% of adults with outstanding loans, half applied for loans from informal sources such as informal lenders (54%) as well as than family and friends (41%). .
Earlier, the CIC also issued a notice, warning the public to be vigilant against the malicious use of its name and logo by PLOs who engage in abusive, unethical and unfair means to recover debt payments.
The public is encouraged to report such incidents to [email protected] Additionally, if members of the public experience harassment and abuse from financial institutions, they can report such incidents to the SEC by [email protected]