LTO-7 chief lauds no ‘installment only’ policy

CEBU, Philippines — The top official of the Land Transportation Office-7 has been “elated and vindicated” by the latest development wherein the Department of Trade and Industry issued Administrative Order No. 21-03 or the guidelines for payment options on the purchase of consumer products and services.

Section 2 of the said AO states that no person or company engaged in the sale or offer for sale of consumer products and services shall impose an “installment only” mode of payment to consumers.

It added that consumers shall be given the option to pay in cash, in installment or a combination thereof.

“Denial of the right of the costumer to pay in cash shall constitute a prima facie violation of Article 52 of the Consumer Act,” it said.

“I am elated and vindicated to hear of this development. Land Transportation Office (LTO) 7 has been at the forefront in the advocacy for stronger protection of consumer rights, especially for motorcycle and vehicle buyers,” said LTO-7 regional director Victor Caindec.

Caindec said that LTO-7 has been at the forefront in the advocacy for stronger protection of consumer rights, especially for motorcycle and vehicle buyers.

“If mopalit ka og cash then ‘hot item’ ang unit (pangitaon nga model), dili nila baligya og cash kay gamay ra ang kita versus installment or in-house financing, kay mokita >3% per month sa interest and other fees,” said Caindec.

He said this explains why motorcycle dealers would opt to have the units paid in installment basis.

Caindec said that this order by DTI alongside the findings of the Senate Blue Ribbon Committee headed by Senator Richard Gordon highlights their revelations on motorcycle dealer malpractices which put at a disadvantage, ordinary Filipino motorcycle buyers.

The LTO-7 chief said that the ordinary Filipinos are no longer held captive by unfair and insensitive “in-house financing” schemes by unscrupulous dealers, but this also allows the entire motor vehicle industry to benefit from a more dynamic market financing landscape.

“More importantly, I hope this serves as a lesson and warning to those who try to take advantage of the desperation of our fellow Filipinos in dire need of motorcycles as a means for mobility, that government will work in unison to protect the interests of its citizens,” Caindec further said. — GMR (FREEMAN)