On 22 May 2007, Republic Act No. 9474, also known as the “Lending Company Regulation Act of 2007,” was signed by the President. The law is consistent with the declared policy of the State to regulate the establishment of lending companies and to place their operation on a sound, efficient and stable condition to derive the optimum advantages from them as an additional source of credit; to prevent and mitigate, as far as practicable, practices prejudicial to public interest; and to lay down the minimum requirements and standards under which they may be established and do business. Here is a basic discussion of the new law: