Regulatory Alerts2023-01-15
Added
DFIM Circular Letter No. 01: Schedule of Fee/Charges/Commission for Financial Institutions
The Department of Financial Institutions and Markets amends Instruction 4 of Circular Letter No. 01/2018 to cap prepayment fees at a maximum of 1% of the outstanding balance, while exempting micro and small enterprises. It mandates that financial institutions provide at least one month's prior registered mail notice to customers before adjusting interest or profit rates, ensuring proof of receipt is retained in loan files. Additionally, institutions must recalculate and provide updated repayment schedules following any rate changes, and waive prepayment fees if a customer chooses to fully settle the loan within one month of the rate adjustment date.
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