DTI to end policy limiting motorcycle buyers to installment payments

The Department of Trade Industry (DTI) will issue an order to prevent motorcycle dealers from forcing consumers to buy motorcycle units on an installment basis.

Trade Secretary Ramon Lopez made the announcement after Senator Richard Gordon asked him if the interest rates on motorcycle units under installment payment basis, which go as high as 36%, was justified.

“Meron pong mga installment packages, but dapat po may choice ang consumers. Kung gusto mo bayaran ng cash at ayaw mo pumasok sa installment, they (dealers) should allow it,” Lopez said during the Senate Blue Ribbon panel hearing on the alleged misfeasance, malfeasance, and nonfeasance in the implementation of the Motorcycle Crime Prevention Act.

“Ang report na nakaring sa amin, madalas ho, ineencourage o halos hindi na makapili eh, ine-enforce na pag gusto mo talaga bumili, dapat installment. Maglalabas kami ng Department Order dahil sa sa mga narinig namin complaints na ganito,” the DTI Secretary added.

Lopez said that the dealers’ policy of limiting their customers to an installment payment scheme when buying motorcycles was part of the over 3,000 complaints that the DTI’s Fair Trade Enforcement Bureau received recently, alongside the non-release of official receipts (ORs) and certificate of registrations (CRs), defective units, and non-release of certificates of full payment.

Of the 3,000 complaints, Lopez said 287 were resolved through mediation.

“This department order will be issued… maghi-hearing lang kami, consultation. Mailalabas ito to address these complaints,” Lopez added. — DVM, GMA News