THE Department of Trade and Industry (DTI) reminded commercial and residential landlords who fail to comply with an order imposing a 30-day grace period on the payment of rents will face up to two months imprisonment and P10,000 in fine.
At the same time, DTI Secretary Ramon Lopez appealed to banks and credit card companies to waive penalties and charges on late payments on their loans, be their commercial or personal.
At the Laging Handa virtual briefing, Lopez said consumers can seek a reversal of payments of penalties and finance charges imposed by banks and credit card companies during the enhanced community quarantine (ECQ)
“These charges should be wauved because that technically disregards the grace period given on the payment of loans. That is contained in the implementing rules and regulations of the Department of Finance. It’s in the law,” said Lopez, referring to the guidelines of Republic Act 11469 or the Bayanihan to Heal as One Act granting a deferment of payment for one month on loans.
Lopez also said with the extended ECQ, landlords should comply with Memorandum Circular No. 20-12, Series of 2020 issued on April 4, 2020 granting a 30-day grace period for residential and commercial rent falling due within the ECQ period to give respite to micro, small and medium enterprises that have temporarily ceased operations.
These enterprises will also not incur interest, penalties, fees, and other charges under the grace period. Similarly, DTI will ensure that a minimum of 30 days grace period shall be granted for residential rent that fall due within the ECQ under the same terms.
Lopez also reminded landlords that the cumulative amount of rents that need to be paid within the ECQ must be amortized equally in the six months following the end of the said period. This can be added to the rent owed for succeeding months without interest, penalties, fees, and charges.
As provided under Republic Act 11469 or the Bayanihan to Heal as One Act, lessors that are found guilty of refusing to provide the 30-day grace period to lessees shall be penalized with imprisonment of not less than two months or a fine of not less than Php 10,000, or both.
