Ernesto Dionisio Jr., assistant chairman of the House of Representatives and a Manila representative, has filed a resolution calling on the House of Representatives to investigate the practice of car dealers that limits buyers' payment options to financing.
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Dionisio argued in House Resolution 1058 that auto dealers continue to use the “installment only method” despite the issuance of an administrative order (AO) by the Department of Trade and Industry (DTI) prohibiting the practice.
The legislator refers to DTI AO 21-03, which states that "no person or company engaged in the sale or provision of consumer products and services shall impose an 'Instalment Only' method of payment on consumers. Consumers shall be given the option of paying in cash, in instalments or a combination thereof. Denying the consumer the right to pay in cash constitutes a prima facie violation of Section 52 of the Consumer Act."
“Despite these clear guidelines from the DTI, the practice of car dealers imposing mandatory bank or internal financing on consumers continues, depriving consumers of the right to choose their own payment method,” Dionisio said.
