LTFRB to accept franchise applications for lease-to-own cars but...
MANILA, Philippines – Transportation network vehicle services (TNVS) franchise applications for lease-to-own cars will be processed but put under "certain provisions," the franchising regulatory board announced on Friday, March 2.
In a press briefing, the Land Transportation Franchising and Regulatory Board (LTFRB) announced that they will be processing TNVS applications for some 39,000 lease-to-own vehicles but previous billing accounts should be settled.
"Reminders to TNVS, your accounts should be current. We will not process if you have a [balance] of two months...You have a week to settle your accounts," LTFRB Board Member Aileen Lizada said in a mix of English and Filipino.
Franchise applications will be open on Monday, March 5.
What is the process? TNVS operators with lease-to-own vehicles under the Toyota Financial Services can apply for a franchise.
According to the LTFRB, operators will need to submit their account name and car loan number to their respective transportation network companies (TNC).
TNCs Grab and Uber will then submit these documents to the LTFRB, which will be submitted to Toyota Financial Services for comparison with their records.
Lizada said franchise applications for these vehicles will be accepted starting Monday, but will be processed after those with official receipts and certificates of registration (ORs/CRs).
An OR/CR under the operators' name is part of the requirements for TNVS franchise applications. The LTFRB held talks with loaning institutions so that the ORs/CRs of the vehicle will be released under the name of the operator, and not under the bank or institution that handles the loan.
"In this case, we are in talks with Toyota first but if there are other (loaning institutions) who will approach us, we will talk to them," Lizada said in a mix of English and Filipino.
What will happen on March 5? LTFRB will be processing franchise applications received until July 2017. (READ: LTFRB will not process new franchise applications for ride-hailing services)
TNVS operators applying for provisional authority (PA) will have to follow the application schedule provided by their TNCs and will need to bring the following:
- Verified application
- Proof of Filipino citizenship
- Government-issued ID with photo
- LTO OR/CR under the name of the applicant
- Operators data sheet
These are the steps for application at the LTFRB Central Office starting Monday:
- Step 1: Staff will verify if the applicant is on the database of scheduled operators to apply that day and if there was a previous application received by July 2017
- Step 2: An evaluator will check if the requirements are complete
- Step 3: A payment order slip will be given
- Step 4: Pay at the cashier. Release dates for PA and notice of hearing will be given after.
The LTFRB said they will not process applications with incomplete documents and not on schedule.
Temporary stickers will be provided once they receive their PA. Another sticker will be given after they are issued the Certificate of Public Convenience.
The LTFRB set a cap for TNVS applications to 66,750 units.– Rappler.com