Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
The activities of the country’s lending institutions are regulated by the General Banking 
Law, the Central Banking Act, pertinent provisions of the New Civil Code, and such 
special laws as the Truth in Lending Act.  In all these laws, nowhere is it provided that 
financial institutions and other firms engaged in the extension of credit must make credit 
available with fairness, impartiality, and without discrimination on the basis of sex, marital 
status, race creed, religion, or age.  
This bill seeks to fill the gap in existing laws by requiring the country’s financial 
institutions and other firms engaged in the extension of credit to make equally available 
to all credit worthy customers without regard to sex, marital status, national origin, 
religion, or age.  A regime of equality credit extension will enhance economic stability.  
It will also foster friendly competition among the various financial institutions and other 
firms engaged in the extension of credit. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
MIGUEL LUIS R. VILLAFUERTE  
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 27, 2022
4:49 pm
2607


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS ENCISO VIII 
AN ACT 
REQUIRING ALL CREDITORS OR LENDERS OF FUNDS TO PROVIDE EQUAL 
CREDIT OPPORTUNITIES TO ALL CREDIT-WORTHY PERSONS APPLYING FOR 
THE SAME 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Equal Credit Opportunity 
Act.” 
SECTION 2. Declaration of Policy. – It is hereby declared a state policy to enhance 
economic stability and foster competition among the country’s financial institutions by 
requiring these and other firms engaged in the extension of credit to make credit equally 
available to all credit-worthy customers with fairness, impartiality, and without 
discrimination. 
SECTION 3.  Definition of Terms. – As used in this Act – 
(A)
“Adverse Action” means a denial or revocation of credit, a change in the terms 
of an existing credit arrangement, or a refusal to grant credit in substantially 
the amount or on substantially the terms requested.  Such term does not 
include a refusal to extend additional credit under an existing credit 
arrangement where the applicant is delinquent or otherwise in default, or 
2607


 
 
where such additional credit would exceed a previously established credit 
limit; 
 
(B) “Applicant” means any person who applies to a creditor directly for an 
extension, renewal or continuation of credit, or applies for a credit indirectly by 
use of an existing credit plan for an amount exceeding a previously 
established credit limit; 
 
(C) “Board” refers to the Central Monetary Board; 
 
(D) “Credit” means the right granted by a creditor to a debtor to defer payment of 
debt or to incur debt and defer its payment or to purchase property or services 
and defer payment therefore; 
 
(E) “Creditor” means any person who regularly extends, renews, or continues 
credit, any person who regularly arranges for the extension, renewal, or 
continuation of credit; or any assignee of an original creditor who participates 
in the decision to extend, renew, or continue credit; and 
 
(F) 
“Person” means a natural person, a corporation, a government or 
governmental subdivision or agency, trust, estate partnership, cooperative or 
association. 
 
SECTION 4. Activities Constituting Discrimination. – It shall be unlawful for any 
creditor to discriminate against any applicant, with respect to any aspect of a credit 
transaction — 
(A) On the basis of race, color, religion, national origin, sex or marital status, or 
age, provided that the applicant has the capacity to contract; 
 
(B) Because all or part of the applicant’s income derives from dole-outs or any 
public assistance program; or  


 
 
 
(C) Because the applicant has in good faith exercised any right under this Act. 
 
SECTION 5. Activities Not Constituting Discrimination. – It shall not constitute 
discrimination for purposes of this Act for a creditor — 
(A) To make an inquiry as to marital status if such inquiry is for the purpose of 
creating a valid lien, passing clear title, waiving inchoate rights to property; or 
assigning earnings;  
 
(B) To request the signature of both parties to a marriage for the purpose of 
creating a valid lien, passing clear title, waiving inchoate rights to property; or 
assigning earnings. Provided, however, that this subsection shall not be 
construed to permit a creditor to take sex or marital status into account in 
connection with the evaluation of credit-worthiness of any applicant; 
 
(C) To make an inquiry of the applicant’s age or of whether the applicant’s income 
derives from dole-outs or any public assistance program if such inquiry is for 
the purpose of determining the amount and probable continuance of income 
levels, credit history, or other pertinent element of credit-worthiness as 
provided in regulations of the Board; 
 
(D) To use any empirically derived credit system which considers age if such a 
system is demonstrably and statistically sound in accordance with regulations 
of the Board, except that in the operation of such system the age of an elderly 
applicant may not be assigned a negative factor or value; or 
 
(E) To make an inquiry or to consider the age of an elderly applicant when the age 
of such applicant is to be used by the creditor in the extension of credit in favor 
of such applicant. 
 
SECTION 6. Additional Activities Not Constituting Discrimination. – It is not a 


 
 
violation of this Act for a creditor to refuse to extend credit offered pursuant to — 
(A) Any credit assistance program expressly authorized by law for an 
economically disadvantaged class of persons; 
 
(B) Any credit assistance program administered by a profit organization for its 
members or an economically disadvantaged class of persons; or 
 
(C) Any special purpose credit program offered by profit-making organization to 
meet special social needs which meets standard prescribed in regulations by 
the Board if such refusal is required by or made pursuant to such program. 
 
SECTION 7. Reason for Adverse Action; Procedure Applicable.  
(A)  Within thirty (30) days, or such longer reasonable time as specified in 
regulations of the Board for any class of credit transaction, after receipt of a 
completed application for credit, a creditor shall notify the applicant of its 
action on the application. 
 
(B)  Each applicant against whom adverse action is taken shall be entitled to a 
statement of reasons for such action from the creditor.  A creditor satisfies 
this obligation by — 
(1) 
Providing statements of reasons in writing as a matter of course to 
applicants against whom adverse action is taken; or 
(2) 
Giving written notification of adverse action which discloses — 
(a) The applicant’s rights to a statement of reasons within thirty (30) days 
after receipt by the creditor of a request made within sixty (60) days 
after such notification, and 
(b) The identity of the person or office from which such statement may be 
obtained. Such statement may be given orally if the written notification 
advises the applicant of his right to have the statement of reasons 
confirmed in writing on written request. 
 


 
 
(C)  A statement of reasons meets the requirements of this Section only if it 
contains the specific reasons for the adverse action taken. 
 
(D)  Where a creditor has been requested by a third party to make specific 
extension of credit directly to an applicant, the notification and statement of 
reasons required by this subsection may be made directly by such creditor, or 
indirectly through the third party, provided in either case that the identity of the 
creditor is disclosed. 
 
(E)  The requirements of paragraph (B), (C) or (D) may be satisfied by verbal 
statements or notifications in the case of any creditor who did not act on more 
than one hundred and fifty (150) applications during the calendar year 
preceding the calendar year in which the adverse action is taken, as 
determined under regulations of the Board. 
 
SECTION 8. Promulgation of Regulations by Board; Establishment of Consumer 
Advisory Council by Board; Duties and Membership of Council. – 
(A)  The Board shall prescribe regulations to carry out the purposes of this Act.  
These regulations may contain but are not limited to such classifications, 
differentiation, or other provision, and may provide for such adjustments and 
exceptions for any class of transactions, as in the judgment of the Board are 
necessary or proper to effectuate the purposes of this Act, to prevent 
circumvention or evasion thereof, or to facilitate or substantiate compliance 
therewith. In particular, such regulations may exempt from one or more of the 
provisions of this Act any class of transactions not primarily for personal, 
family, or household purposes, if the Board makes an express finding that the 
application of such provision or provisions would not contribute substantially 
to carrying out the purposes of this Act.  
 
(B)  The Board shall establish a Consumer Advisory Council to advise and consult 
with it in the exercise of its functions and to advise and consult with it 


 
 
concerning other consumer related matters it may place before the Council.  
In appointing the members of the Council, the Council shall meet from time to 
time at the call of the Board.  Members of the Council who are not regular 
full-time 
employees 
of 
government, 
national, 
or 
local, 
or 
any 
government-owned or controlled corporation, shall, while attending meetings 
of such Council, be entitled to receive compensation at a rate fixed by the 
Board, but no exceeding Three Hundred Pesos (P300.00) per day, including 
travel time. Such members may be allowed travel expenses, including 
transportation and subsistence, while away from their homes or regular place 
of business.  
 
SECTION 9. Administrative Enforcement. – Compliance with the requirements 
imposed under this Act shall be enforced by:  
(A) The Board, with respect to banks, including government banking institutions, 
savings and loan associations, and other financial institutions or firms 
engaged in the extension of credit. 
 
(B) The Land Bank of the Philippines, with respect to agricultural credit union 
cooperatives; 
 
(C) The Securities and Exchange Commission, with respect to brokers and 
dealers. The Board shall, however, exercise overall authority in the 
enforcement of the requirements imposed under this Act. 
 
SECTION 10. Rules and Regulations by Enforcing Agencies. – The authority of the 
Board to issue regulations does not impair the authority of the other agencies designated 
in Section 9 to make rules respecting their own procedures in enforcing compliance with 
the requirements imposed under this Act.  
  
SECTION 11. Civil Liability. – 
(A) Individual or Class Action for Actual Damages. – Any creditor who fails to 


 
 
comply with any requirement imposed under this Act shall be liable to the 
aggrieved applicant for any actual damages sustained by such applicant 
acting either in individual capacity or as a member of a class. 
 
(B)  Recovery of Punitive Damages in Individual and Class Actions for Actual 
Damages; Exemptions; Maximum Amount of Punitive Damages in Individual 
Actions; Limitation on Total Recovery in Class Actions; Factors Determining 
Amount of Award. – Any creditor, other than a government or governmental 
subdivision or agency, who fails to comply with any requirement imposed 
under this Act shall be liable to the aggrieved applicant for punitive damages 
in an amount not greater than Ten Thousand Pesos (P10, 000.00), in addition 
to any actual damages provided in paragraph (A) of this Section, except that 
in the case of a class action the total recovery under this subsection shall not 
exceed the amount of One Hundred Thousand Pesos (P100, 000.00) or one 
per centum (1%) of the net worth of the creditor.  In determining the amount 
of such damages in any action, the court shall consider, among other relevant 
factors, the amount of any actual damages awarded, the frequency and 
persistence of failures of compliance by the creditor, the resources of the 
creditor, the number of persons adversely affected, and the extent to which 
the creditor’s failure of compliance was intentional. 
 
(C)  Recovery of Costs and Attorney’s Fees. – In the case of any successful action 
under paragraph (A) or (B) of this Section, the costs of suit, together with a 
reasonable attorney’s fee as determined by the court, shall be added to any 
damages awarded by the court under such subsection.   
 
SECTION 12. Jurisdiction of Courts; Time for Maintenance of Action; Exceptions. – 
Any action brought under this Act may be brought in the appropriate court using as 
jurisdictional basis the amount in controversy.  No such action shall be brought later 
than two years from the date of the occurrence of the violations, except that — 
(A) Whenever any agency having responsibility for administrative enforcement 


 
 
under Section 9 commences an enforcement proceeding within two (2) years 
from the date of the occurrence of the violation, or  
 
(B) Whenever the Solicitor General commences a civil action under this section 
within two (2) years from the date of the occurrence of the violation. 
 
Any applicant who has been a victim of the discrimination which is the subject of such 
proceeding or civil action may bring an action under this Section not later than one (1) 
year after the commencement of that proceeding or action. 
 
SECTION 13. Request by Responsible Enforcement Agency to Solicitor General 
for Civil Action. – The agencies having responsibility for administrative enforcement 
under Section 9, if unable to obtain compliance with the requirements imposed under this 
Act, are authorized to refer the matter to the Solicitor General with a recommendation 
that an appropriate civil action be instituted. 
 
When a matter is referred to the Attorney General pursuant to this Section, or whenever 
he has reason to believe that one or more creditors are engaged in a pattern or practice 
in violation of this Act, the Solicitor General may bring a civil action in a court of 
competent jurisdiction, including injunctive relief. 
 
SECTION 14. Discovery of Creditor’s Granting Standards. – Nothing in this Act shall 
be construed to prohibit the discovery of a creditor’s credit granting standards under 
appropriate discovery procedures in the court in which an action or proceeding is 
brought. 
 
SECTION 15. Annual Reports to Congress; Contents. – Each year, the Board shall 
report to the Congress concerning the administration of its functions under this Act, 
including such recommendations as it may deem necessary or appropriate.  In addition, 
the report of the Board shall include its assessment of the extent to which compliance 
with the requirements of this Act is being achieved, and a summary of the enforcement 


 
 
actions taken by each of the agencies assigned administrative responsibilities under 
Section 9 of this Act. 
 
SECTION 16. Repealing Clause. – Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or 
inconsistent with, the provision of this Act is hereby repealed, modified or amended 
accordingly. 
 
SECTION 17. Separability Clause. – If any provision or part hereof is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
 
SECTION 18. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
 
Approved,