Inquirer
Comply with Bayanihan Act, SEC tells financing firms
The Securities and Exchange Commission (SEC) has directed all lending and financing companies to postpone loan collections and penalty charges during the COVID-19 national emergency.
This order aligns with the Bayanihan to Heal as One Act, which mandates a minimum 30-day grace period for loan payments.
The grace period applies to loans with principal or interest due between March 17 and April 12, and will be extended if the enhanced community quarantine is prolonged.
Institutions covered by the order include banks, credit card issuers, pawnshops, and government financial institutions like the GSIS, SSS, and Pag-IBIG Fund.
During this period, lenders are prohibited from imposing additional interest, fees, or charges on future payments.
Borrowers have the option to pay accrued interest over the remaining loan term.
Furthermore, any previous waivers executed by borrowers for payments due during the enhanced community quarantine are deemed invalid.
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News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The Department of Finance (DOF) released the implementing rules and regulations (IRR) for the mandatory 30-day loan payment grace period.
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The Bankers Association of the Philippines (BAP) supports the "Bayanihan To Heal As One" Act and trusts its Implementing Rules and Regulations (IRR) will safeguard financial institutions.
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The Government Service and Insurance System (GSIS) has granted a three-month moratorium on loan payments for its members and pensioners, including housing loan amortizations, in compliance with the Bayanihan Heal as One Law.
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The Securities and Exchange Commission (SEC) has transferred ₱2 billion to the national treasury to support the government's response to the COVID-19 pandemic.
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