Your Rights During Loan Default Under CBN Policy

a. Institutions that are DMBs shall notify consumers within 3 days from the

first day of default, through the agreed medium that a default charge

would be applied on the account after 7 days from the date the

obligation becomes due.

b. Customers of Institutions other than DMBs shall be notified on the first

day of default, that default charge would be applied on the account

after 3 days from the date the obligation becomes due.

c. Default charge shall be disclosed in customers’ statements of account

separately from the interest charge.