Regulatory Alerts2014-04-04
DBFIA Practice Direction No. 5: Disclosure of Interest and Other Charges on Consumer Loans
The Central Bank of Belize issued Practice Direction No. 5 to mandate full disclosure of interest and other charges on consumer loans for borrower protection. Banks must provide written statements detailing finance charges, net proceeds, and the Effective Interest Rate prior to loan consummation, while also ensuring prominent EIR disclosure in advertisements. The regulation further requires transparent disclosure of prepayment penalty terms and specifies standardized formats for various loan calculation methods.
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