DTI set to address installment-only scheme for motorcycle sales
MANILA, Philippines — The Department of Trade and Industry (DTI) will issue a department order that will address the installment-only scheme of some motorcycle dealers.
Trade Secretary Ramon Lopez disclosed this during a Senate Blue Ribbon Committee hearing Monday after Senator Richard Gordon asked the former about the installment payment scheme in motorcycle dealerships.
“Yun bang pinagbibiling motorsiklo na ang singil ng mga dealer na 36 percent interes makatarungan ba ‘yon?” Gordon, chairman of the Senate committee, asked Lopez.
(Is it right for motorcycle dealers to charge buyers 36 percent interest?)
In response, Lopez said consumers should have the option to purchase a motorcycle in cash if they have the capacity to do so. But in some cases, the DTI chief noted that this option does not exist.
“Meron pong mga installent packages but ang dapat may choice ang consumer. Kung gusto niyang bayaran ng cash at ayaw niyang pumayag sa installment dapat i-allow. Ang report po samin ay madalas ho ay ine-encourgae or halos hindi na nakakapili. Ine-efnorce yung ‘pag gusto mo talaga, bumili ka as installment,” Lopez said.
(There are installment packages but the customer should have a choice. If he opts to pay in cash instead of installment, he or she must be allowed to d0 so. We have received reports that customers are being convinced to pay on installment basis.)
“Siguro po maganda rin pong matanong sa mga dealers kung talagang binibigyan ng option yung mga consumer dahil kami ho, maglalabas ho kami ng department order dahil narinig namin tong complaint na ‘to, to address the concern na yung installment-sales-only scheme,” he added.
(It would be best to fond out from dealers if they give their customers flexible payment terms. We will issue a department order to address the reported installment – only scheme.)
According to Lopez, the DTI is currently drafting the order which will be subjected to a hearing and consultation.
“In essence yung draft department order namin…should provide options whether kung magbayad ng cash para walang interes…may option din, yung wala naman malaking cash, may installment,” he added.
(The department order will allow customers to pay cash or installment.)
Meanwhile, Lopez told the Senate committee that the DTI’s fair trade enforcement bureau and its regional offices have so far received 3,060 consumer complaints related to motorcycle sales.
These complaints include the non-release of official receipt and certificate of registration, defective units, as well as the refusal of motorcycle dealers to release certificate of full payment and the “practice of dealers offering sale on installment only even if the buyer is willing to pay the full value in cash,” Lopez noted.
To date, 287 of these complaints have already been resolved through mediation by the fair trade enforcement bureau, according to the trade secretary.