Abstract
This study examined the level of bank compliance with the Truth in Lending Act of the Philippines (Republic Act No. 3765) as assessed by loan borrowers in a component city in Central Philippines. Using a descriptive-comparative research design, data were gathered from thirty (30) loan borrowers through a researcher-made survey questionnaire. Bank compliance was evaluated across four key areas: disclosure of interest rates, disclosure of total loan cost, clarity of terms and conditions, and timeliness and completeness of information provided before loan approval. Results revealed that overall bank compliance with the Truth in Lending Act was rated at a very high level, indicating that borrowers generally perceived banks as transparent and compliant with disclosure requirements mandated by law. However, variations in ratings across specific indicators suggest areas for improvement, particularly in enhancing borrowers’ understanding of loan obligations. The findings highlight the importance of sustained regulatory implementation, consumer education, and institutional compliance mechanisms to strengthen financial transparency and consumer safety. The study underwrites empirical evidence to public administration and financial governance discourse by emphasizing the role of regulatory compliance in promoting knowledgeable financial decision-making and accountable banking and lending practices.
Keywords: Truth in Lending Act, bank compliance, loan disclosure, consumer protection, financial transparency