With the suspension of the Usury Law and the removal of interest ceilings, the parties are generally free to stipulate the interest rates to be imposed on monetary obligations. As a rule, the interest rate agreed by the creditor and the debtor is binding upon them. This rule, however, is not absolute.
In a recent case, the SC again dealt with the validity of interest agreed by the parties, stating that stipulated interest rates are illegal if they are unconscionable and the Court is allowed to temper interest rates when necessary. In exercising this vested power to determine what is iniquitous and unconscionable, the Court must consider the circumstances of each case. What may be iniquitous and unconscionable in one case, may be just in another.
[See also Excessive and Unconscionable Interest Rates in the Philippines]
In that case, the SC reduced the interest rate from 18% to 12% per annum, noting, among others, that the amount involved has ballooned to an outrageous amount four times the principal debt.
Indeed, there is no hard and fast rule to determne the reasonableness of interest rates. Stipulated interest rates of 21%, 23% and 24% per annum had been sustained in certain cases.
On the other hand, there are plenty of cases when the SC equitably reduced the stipulated interest rates; for instance, from 18% to 10% per annum. The SC also voided the stipulated interest of 5.5% per month (or 66% per annum), for being “excessive, iniquitous, unconscionable and exorbitant, hence, contrary to morals (“contra bonos mores”), if not against the law”. The same is true with cases involving 36% per annum, 6% per month (or 72% per annum), and 10% and 8% per month. In these instances, the SC imposed the legal interest of 12%.
Just to be clear, “legal interest” doesn’t mean that anything beyond 12% is “illegal”. It simply means that in a loan or forbearance of money, the interest due should be that stipulated in writing, and in the absence thereof, the rate shall be 12% per annum.
——————–
Sources: Trade & Investment Development Corporation of the Philippines vs. Roblett Industrial Construction Corporation (G.R. No. 139290, 9 May 2006); Development Bank of the Philippines vs. Court of Appeal; Garcia vs. Court of Appeals; Medel vs. Court of Appeals; Security Bank and Trust Company vs. RTC Makati; Spouses Solangon vs. Salazar; Cuaton vs. Salud; Ruiz vs. CA; Eastern Shipping vs. Court of Appeals, G.R. No. 97412 July 12, 1994.
How about the 7% interest/penalty imposed by collection agencies of some credit card companies on delinquent accounts? I informed them of my intention to pay my account on installment. They insisted that if the installment is for one year, they will charge 7% interest per month, maybe because they know that the Usury Law is now inexistent. I requested for a fair interest rate, a lower rate based on the remaining balance. They refused to listen. Perhaps they would want to see me in court. Is there an alternative for me?
Others talk directly with people from the credit card company, although most have been told to discuss the matter with the collection agency because the account had already been referred to that agency. Still, there are instances when a credit card company directly responds to proposals, so it’s worth the try. The “see me in court” option that you mentioned should be the last recourse.
As to the reasonableness of the 7%, this is gauged by taking into consideration all the surroundng circumstances (e.g., amount of loan, amount of previous interests/penalties charged and paid, etc.). I cannot ask for these details (specifics of your case) and give an opinion, as it would be tantamount to a legal advice. I hope you understand that ethical considerations prohibit us from doing that. Nevertheless, this general issue may be covered in our subsequent articles.
hi, some lending institutions charge more than 12% per annum rates and at times charge penalties for failure to pay on time on top of interest, could you say this is unconsionable? will the courts temper this? can’t just exhorbitant penalty substitute the payment of
interest?
As mentioned above, whether a particular rate is unconscionable depends on the facts of each case. Interests and penalties are different, and may be separately considered valid (or invalid) depending on the circumstances.
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my mother has been indebted with 50k and was charged 8% for interest monthly. She was able to pay 61k from mar 2005-july 2006 on her own list. however now that the attorney in fact of the creditor is now claiming the money they have lend, i found out from the personal notebook of the creditor that my mother still pays during 2007. due to this i found out that she have paid more than 61k.
as agreed upon by the creditor and my mother, our house has been the collateral. however the house is located at a government-owned land, and the rights holder is not my parents but my grandmother. another thing the house is conjugal and my father has no knowledge regarding the debt and the collateral made by my mother.
my questions are:
1. is the contract valid regarding the house as collateral without my father’s approval and signature?
2. Can we appeal on court regarding the amount my mother have paid and for reconsideration of the interest rate being unconscionable?
Hi i had same story with you. Are your questions been answered?
how can a restoration of usury law be profitable?
hi….just want to ask I have a loan with a lending company. The interest is from 14% and now it goes down to 12.5% a month. Is this legal? I mean the interest really is so high…..problem is I’m having a hard time paying……and they said that they will send a demand letter….Please advise….
gud day, i hope you can give me legal advice, i have a credit amounting to P1500.00 and the interest is 20% every 10 days this credit goes until now, as i remember this start last nov. 2011, at first i pay P1680.00, P600.00 of this is for the 20 days interest which is 40%, P80.00 is for the interest’s interest, i gave this payment to my co maker but before i gave the money to her I have her signed the written agreement that as a co maker she received my payment. without my knowledge my co maker did not remitted my payment. she says instead shell pay for it and have the responsibilities on the money, the person where we lend the money don’t agreed she says i’m still the one who are responsible for the payment of the said money, but on the contract we signed it stated that if i didn’t pay my credit my co maker is the one who will pay for it. and until now were paying the interest, but because of the big interest she didn’t afford to pay continuously and now shes suing us, can u give us legal advice, did she has the right to sue us? what will we do.
Sir/Ma’m,
I believe a friend of mine, who is a CAFGU, secured a usurious rate of a PhP 30,000-loan payable in one year.
The interest rate is 5.4% monthly on the principal which nets to PhP 1620.00/month multiply by 12 months, this totals to PhP 19,440.00.
I intend to help my friend with the right and legal payments including for the interest rates that is consciolable and not usurious.
I understand that the creditor has already violated certain provisions set by our law. What would you suggest for me to proceed with the settlement of this debt and and with the addressing of this violation: to what authority shall I bring this matter so that this despicable practice is for once concluded by those who take advantage of the misfortunes of others.
My friend has already covered for 6-month worth of paying his debt and the equivalent monthly interests by having his ATM card held by the debtor.
Your advise is utmost solicited.
Thank you and warm regards,
Eric
Dear Attorney,
I am an OFW who borrowed 15000pesos payable in 1 month from a lending agency which was referred by my recruitment agency. At first they charged me 16957NT around 24000pesos but I disputed and they lowed down to 15240NT (around 22000pesos) which is still I find very excessive. Is the interest they charged reasonable according to the law? What is the maximum interest rate allowed for lending agencies? By the way, it was very late when I found out that I need to pay such amount because they did not informed me before they released the money. And unfortunately, I have used the money to pay the balance of my placement fee.
I would highly appreciate any advice/opinion you could give us.
You can sue them also of fraud for not stating the amount of interest in your contract and it will render the contract void .
Same as my problem mam.. I borrowed 80000 pesos with a 4.5percent sumthing interest for one year.. But i have to pay it in nt.. So my monthly is 6955nt for 12 months… If i compute it 83460nt… So that is around 136000pesos.. It was late when they orient me about d payment..my check is ready to release and i needed it badly for my placement fee and payment for my debt from friends..which i used it when i was applying.. Now mam i want to pay the full amount of 83460pesos supposedly… Because my mother lend me money from her pension..wud it b possible mam
My case is different.
I want to take a loan shark to court.
I owed this person 70k for more than 2yrs. paying her 10% interest per month. Actually that lead to that 70k because she added up the interest of it every time I failed to pay inprevious months. The interest itself is hard on me when until then I have difficulty paying it.
Now I want to pay her gradually without paying that much interest every month by taking her to court.
How can I do that to start with?
Thank you.
can you please give me a clarification and goverment law regarding with my loan interest..i got 65,000 pesos loan lending, payable by 6 months and this became 88000+..in monthly payment is morethan 14K, is this legal interest policy by the lending corporation..please reply..thanks
Borrowers beware, usury law was disabled.
And legally if you agreed to borrow at a certain percentage, be it more than 12% is legal; because you had “agreed”..like in a contract or any written form.
The 12% is imposed if there is no agreed interest rate and there is no written proof of agreement.
PLEASE DO NOT BORROW IF YOU CANNOT PAY, DO NOT AGREE IF YOUR REALLY MEAN NO! SHINY MONEY!!!
Dear Atty,
May katanungan lang po ako dahil nagloan po ako sa isang lending company ng 200,000 nakapagbayad ako ng 2 months worth 67,000 pesos dahil gusto ko na syang ifull payment on the third month hindi ho sila pumayag na hanggang sa third month lang na interest yung babayaran ko gusto nila pabayaran yung 5 months na interest na aabot sa 74,000+ humingi ho ako ng kopya kung paano nila kinalculate yung amount kaso ho ang binigay nila ay table of amortization hindi ko ho maintindihan kung paano ho ganon kalaki yung interest ni wla man lang break down sa binigay na data. so umabot ho ng higit isang taon kasi nasa ibang bansa na kami. ang sabi nila nagpapataw daw ho sila ng 7 percent per day sa penalty charge lang ho yang. binasa ko yung lending rules sabi ho dapat nka stipulate kung paano dapat ito nakadisclose sa umutang. anu po ba ang dapat kung gawin dito atty sana po maliwanagan nyo po ang aking isipan tungkol dito. Salamat po and God bless.
Dear Atty,
Borrowed money from online loan and accidentally my phone was stolen the reference code for payment was lost also.And the amount of loan was 10k but when i received the loan it was 8k only due to service charges and other charges.I was not able to pay on the due date and after 22 days the loanable amount was already balloon to 15,550 .And 3 days ago already settled my loan amount which is 10k and yet still i have to pay the interest charges of 5,550. Is it really over for just 22 days ganun na po kaagad interest .Ano po ba dapat gawin Atty. ordinary employee lang din po ako ang over naman po ung charges nila.
i was able to acquire a loan from one of our neighbors here in brgy commonwealth..our loan ballooned to 10k..there’s no formal contract on the said loan..the problem is, the interest is very high and it runs 20% every week..i receive my pay every two weeks, so that means i need to pay 40% interest on my existing loan..is that even legal? i was begging the lender to stop adding interest since they’ve already earned so much money since i’m unable to pay them in full each time i receive my pay. So the result is, the remaining balance will gain interest again after two weeks which is 40% (20% per week)
Hi Ryan. Text me at 09993352091
Usury laws are to protect the poor. That there are no usury laws in the Philippines is no right. That there is a VAT which is regressive is not right. This country will NEVER get right as long as the masses are uneducated and religious.
govt. employed po ako humingi ng tulong ko ang co-worker ko makautang sa kapatid ko ng 71k and she was granted and signed an agreement of 5% monthly ATM as collateral. After several months She accused me of grave misconduct sa ombudsman na ako daw ang nagpapautang kasi ayaw na nya magbayad at nagpalit pa ngATM card. Pwede po ba ako makasuhan? Salamat po.
someone lent us 5k and its interest is 10% per month.der r times that we fail to pay r monthly interest but once we hav money we pay the interest d following month.can we b sued by the lender even if we r paying d monthly interest for 2 years now, simply because we fail to pay d interest for a month?
120% per annum interest rate as to the stipulation of the contract is deem more than a sharp or crocadile that swallowed everything she grabs around her sorroundings.
Good day
Dear atty.Fred
My problema po akung hinaharap ngaun.Umutang po ako sa tao ng 100.000 with in 6months po nkpagbigay n po ako ng 160.000.may notaryo po kmi n pingawa 10% lang po ang tubo every month.Pero nung nagpaggawa po kmi d po siya sumama pinadala lng po niya ung id niya s amin para ipakita s attny.Ngaun po nkalimutan k po papirmahan s kanya.ang nangyari po umalis na po ako sa amin pero hinahanap po niya ako dahil hindi p dw p ako byad lhat daw po ng binayad k ai interest lang dahil ang patakaran dw po niya ay 20% per month.Pinapabyad po niya ako higit 200.000 kasama po ang prinsipal.Tapus idedemanda na daw pi niya ako.ngaun po nadadamay po ang kapatid k dahil atm po niya ang ginamit k dahil po pumapasuk ang remittance k at un po ang isinanla ko sa kanya.Atty.Fred di ko n po kasi kaya bayaran ung hinihingi niya.Baun n baun na po kasi ako s utang para may maibayad sa kanya umuutang po ako sa iba para ibayad k s kanya.Anu po b ang laban ko at makukulong po b ako?pls po advise niyo po ako.Salamat po.
please let me know standard penalties for late payment from government bank, i have loan of 94,700 housing loan
Good day po, I have a problem with the lending company. I barrowed a money amounting to 25k ang natanggap ko po ay 22k binawasan agad ng interest. Before po na manghiram ako I asked yung breakdown ng payment, the employee told me saka na idiclose pag naapproved na. I need to open a bank account for the check issuance. Cla po ang nagprovide ng mga affiliate banks nila. Ng irerelease na yung loan amount ang sabi po kailangan payable for 12 months with an interest of 4 percent per month so umabot po ng 45k ang babayaran ko, 1880 per check. Nakabayad po ako ng 4 months, at na close account yung check ko after, I need to pay an interest of 1 percent per check per day at 1500 per check for the late charges. Bago po ako pumirma gusto ko umatras pero sinabi po nung employee nila di daw pwede or magbabayad ako ng 5k for processing fees. Ang ginawa ko tinuloy ko. Ngayon po do ko sila binayaran, gusto ko pong ilaban ang kaso na ito dahil baka hindi lang ako ang biktima nila. Lahat po ng referral ko pati yung sa co maker ko hinaharassed nila sa text. May laban po ba ako?
Hi,we have the same problem as yours po.s keycash nmn kmi ngloan.nirefer kc sakin ng friend q dhil 1% nga lng dw ang interest per month.so nag go aq.ngpabriefing muna aq bgo mgpirma ng kung ano2.sbi ni mam khaye nun 1.1 ung fixed rate nla ng conversion ng taiwan dollar to peso(fixed n dw ung 1.1).So s PHP100,000 n niloan,NT$8565 ung bbyaran monthly x 1.1= PHP9421.50 dw per month ung bbyaran.9421.50 x 12(1year to pay)=PHP113,058.bale 13,058 ang tubo ng niloan s isang taon.natuwa p aq kc totoo na n 1%/month ang interest.inulit ulit q p sknya n “so ang 100k,13k ang tubo”.oo dw. Kinonfirm q p s mama q un(ksama q kc mama q dat tym kaso nsa lbas xa ng office) kc nga kung dun p s sinasanlaan nia ng ATM kmi kukuha,mas mlaki ng konti ung tubo.kya nagloan n q s keycash.nung huling blik q s keycash,tatanungin q sna pra san p ung barcode kc nga peso to peso aq,pgkarinig nung staff ngulat xa.d dw pwedeng peso to peso.sbi q sbi nun ni mam khaye pwede.taz sbi nia cge pwede dw peso pero kung mgkano dw sexchange rate ng taiwan dollar to peso,un dn babayaran.e d ngulat aq.kc kung 8565 taz 1.47 plitan e d nsa 12k mhigit mkukuha nlang tubo per month.kya sbi q dun s staff,hindi n 1% un.xaka kako sbi nla nun e 1.1 ung fixedrate nla ng exchange rate ng nt to peso.taz ngulat ung babae,ipapasa nnmn aq s ibang staff.e ang tgal.d q n hinintay umuwi n aq.kc bgo p ung last n punta qng un,nkausap q n ung cashier nun n peso nga ibabayad ni mama.inulit ulit q nga n ung 100k,13k ang tubo.oo dw.sbi q anong nid dalhin ng mama q.id lng dw nia.taz tinanong q kung un lng b.oo dw.kya sobrang naloka tlga aq s cnbi ng isang staff nun n kung mgkno dw plitan ng nt to peso e un ang ibabayad nmin.sorry s npakahabang kwento.sna msabi mo kung anong ngyari syo s pinaglendingan mo.thanks!super naiistress n kmi ng friend q n ngrefer dn skin dun dhil nga s gnung style nla.
Parang sa asialink lang yan same issue
Atty
Magloan po ako sa isang lending compny makapagloan ako ng 25k taz ibinwas yung pagoopen ng checking account, natural 22k nalang yung interest po ng 25k sa loob ng isang taon ay 19k or suma total ang interest ay nasa 76% per annum taz pag napas ng due date ay 2200 ang penalty , ito po ba ay tama, pwede ko po b sila kasohan dahil sobra sobra naman yung kanilang paningl sa interest at penalty , may Laban po ba ako kung sakali magfile ako dito sa binigay sa amin kopya hindi nakasaad kung ilan percent Interst. Dahil sa pangangailangam at papunta nga po ako abroad eh kinuha ko na, pero when I realize napakali ng tubo nila
Pwde po b nyo ako bigyan ng advice .. Kung sakali man po may Laban hindi lang ako nakikinabang dito pati yung ibang manungutang at ibang uutang
Hi I have borrowed frm a friend amounting to 250000 and has agreed to have a 8%interest monthly last mar 2015. I Paid almost 73,000 from mar to dec 2015. When I ask her how much is my loan she said it was 460,000 already Jan 2016. I ask her not to add interest anymore and I will pay my debt to her but she refuses. She said she will file legal action and Will do her best to get me into jail. Can I ask what can I do? And will I really go to jail? I really need some help from a lawyer
Dear Atty.
I loaned from a financing company sometime in 2014 amounting to 30k. I issued the checks payable for 5 months equally divided to weekly payments including the interests. However, something came up, my small rtw business collapsed and my heart conditioned worsened. I prioritize my medication and my payment for the balance of 18,000k plus ( 7 checks ) have been defaulted. But, i tried my best to pay my balance by depositing staggered thru the bank account of the lending company plus my remaining savings with them. As my knowledge if ever there still a balance because i lost my record of my savings with the lending company, my outstanding balance would only be 2,000 pesos. To my surprise, they sent me a final demand letter demanding me to pay withhin 5 days and the amount already ballooned to more than 150,000.00. And, i am being harassed to bring the matter in court.
Thank you and any advise you can give will be highly aprreciated
Good day!
My grandmother invested in Palm Oil Plantation and it was financed by a cooperative. Is it legal that the interest rate imposed on the 5 year contract was 24% per annum?
Sir, I want to cancel a loan due to misrepresentation but already signed the disclosure statement. The bank manager demanded for a 6% processing fee. Actually gusto ko po sanang epabuy out yung previous loan ko from other bank without knowing my loan balance. Ginawa po nila nagcompute po sila ng amount na mas malaki yung magiging net proceeds ko sa kanila without asking for my statement of accounts and only to find out later na hindi po pala accurate yung computations nila. Gusto ko po syang e cancel but had signed the disclosure statement. Is there no way out for me?
Gud morning po, nagutang po ako sa isang lending company, 30k+ tapos po may nangyari sa asawa ko na empleyado sa lending company kung san po ako naglending naghiram kame ulit ng 15k, instead na magdeduct sa sahod nya, ang ginawa nagfuse as one, so ang nangyari, lumaki ang utang ko naging 52,224- nagkapagbayad po ako almost 15k palang kasi nawalan po ako ng trabaho, so kung isummarize 37k nalang kulang ko, sa ngayon meron akong konting pera na gusto kong isettle na, kasi colateral ang land title ng mga magulang ko, gusto konang kunin, ang land title ngswap po sa unang laptop na colateral, sa ngayon yung 30K plus nanatirang utang ko umabot na ng 160k. tulungan nyo po ako. salamat
Dear Atty.,
I’m a government employee. I would like to be enlightened if the 30 percent per annum is still legal because this is the rate that the money lender charges me. Also, they do not issue any official receipt every time payment is made through my ATM card used as a collateral for my loan. I hope you can give me an advice regarding this issue becuase this may not only be useful for me but also for the others. Thank you so much.
Atty,
My partner and I bought a laptop via staggered pay option amounting to PHP 19000 payable in 1 year. We were able to pay 7 months but she got laid off and withmy smallsalary we couldn’t continue with our payment. Our last balance was only PHP 9445. Unfortunately, until now, she has not secured a job. We recently got a call that she has a bench warrant fornon payment, when we contacted the collection agency, they say that we need to pay 39000. We can’t pay 9445, how can we pay 39000? What options do we have to avoid court appearance or possible imprisonment? We have a child who can’t afford to lose a mother just because of a lousy laptop.
BSP MB Circular No. 799, Series 2013 – when there is no stipulated interest in a contract of loan, the legal interest shall be 6%
G.R. No. 211228 November 12, 2014
UNIVERSITY OF PANGASINAN, INC., CESAR DUQUE/JUAN LLAMAS AMOR/DOMINADOR REYES, Petitioners,
vs.
FLORENTINO FERNANDEZ and HEIRS OF NILDA FERNANDEZ, Respondents.
“x x x.
As to the correct rate of imposable interest, the petitioners argue that only 6% and not 12% is mandated pursuant to the ruling in Nacar.
Nacaris instructive anent the rate ofinterest imposable upon the total adjudged monetary award, viz:
[T]he Bangko Sentral ng Pilipinas Monetary Board (BSP-MB), in its Resolution No. 796 dated May 16, 2013, approved the amendment of Section 240 of Circular No. 905, Series of 1982 and, accordingly, issued Circular No. 799,41 Series of 2013, effective July 1, 2013, the pertinent portion of which reads:
The Monetary Board, in its Resolution No. 796 dated 16 May 2013, approved the following revisions governing the rate of interest in the absence of stipulation in loan contracts, thereby amending Section 2 of Circular No. 905, Series of 1982:
Section 1. The rate of interest for the loan or for bearance of any money, goods or credits and the rate allowed in judgments, in the absence of an express contract as to such rate of interest, shall be six percent (6%) per annum.
Section 2. In view of the above, Subsection X305.1 of the Manual of Regulations for Banks and Sections 4305Q.1, 4305S.3 and 4303P.1 of the Manual of Regulations for Non-Bank Financial Institutions are hereby amended accordingly.
May loan po ako with a principal amount of P30k. Agreement is for 6 months. I already paid 20k and i was told remaining balance is 21k. And also interest is daily. Is this legally acceptable? Loan is exceeding 6 months not yet 7 mos.
Dear atty,
Ako po ay nagkautang last 2014 worth 100k nagbigay ako ng cheke pero walang date. Binigyan ako pero less na ang 20% interest. Binabayaran ko po sya hanggang ngayon KC nahirapan na po ako bayaran sya taong 2015. Ang nabayad ko na po ay mahigit 300 k plus na pero sabi nya nasa 70k pa ang utang ko. Gusto ko na matapos ito my mga resibo ako g ayment ko na IBA KC SA Palawan ko pinapadala para sa pangalan nya. Ngayon patuloy pa rin pananakot nya.
Dear Atty,
Gusto ko lang po malaman if ang 20% interest weekly sa kinuhang emergency ay legal sa batas?
Hi po,
Nag loan po ako ng less than 15k sa atm lending company..after po mawalan ako ng work i tried to pay my debt pero single parent po ako ang nahirapan po ako magbayad. now may na receive po ako letter from DCA ang sabi ay 75k daw po ang utang ko (from 2012 to 2017) pede po ba na maging ganito kalaki ang amount..less than 15k na lang po ang utang ko at kakasuhan daw po ako..pls help me wala po ako means to pay hndi po ako makatulog..thanks
DOCTOR CASH
I have a loan in doctor cash worth of 7000 the amount that was given to me was only for 6100 so total amount payable on due date is 8800 breakdown 7000 orig amount and 1800 for interest
i requested an extension, the first extension you have to pay interest of 1800 then 600 will be added on top of your total so 8800 plus 600 total is 9400 i didn’t have money cause i gave birth so i requested another extension i paid 2400 but then after the breakdown was sent to me it was added late payment charge of 780 and additional 500 for late payment is 10,680 this is so frustrating and after the due date has come i received this e-mail. I don’t have money to settle amount
“For your serious consideration and guidance, the written ‘DEMAND for payment, SMS to your declared mobile number, private messages, field visits and all other means of communication made for the settlement of your due and demandable obligation to our client DOCTOR CASH, have been unjustifiably and maliciously ignored, hence, our said client has FINALLY DECIDED to possibly file in court the appropriate COMPLAINTS against you.
Should the foregoing be brought in the small claims court, there is a possibility that the presiding judge may issue a writ of preliminary attachment, without notice and delay, cause the COURT SHERIFF to preliminary, LEVY, ATTACH, or SEIZE your real and/or personal properties or GARNISH your salaries and/or bank deposits not to mention possible violation of the ff:
1) Civil case for sum of money
2). Derogatory record to NBI
3) Blacklisting with the Credit Management Association of the Philippines (CMAP)
We are strongly advising you to contact tel 02 370 7062 should you still wish to show your good intention.”
Despite our previous demands on your outstanding balance to our client Doctor Cash, you adamantly refuse to cooperate with us. In view of the foregoing, you are hereby given this FINAL DEMAND to pay in full your outstanding balance. Failure on your part to pay the aforesaid obligation within 24 hours shall constrain us to take the proper legal action to enforce the payment of your obligation. If we do not see any settlement within the given deadline, we will interpret your silence as an admission of your liability and we will proceed without further notice.”
Is it the same policy with the Real State Mortgage? Thank you
Dear attry
I have get a phone from a company and payable for 1year i have paid a downpayment of 6500pesos the phone rate is only 18000 for a cashh but i have to pay for 1790 but if late i have to pay 1990 i paid for 3months so all in total i have paid 11,970 but they want to get 16900pesos from me and told me because was because of the late payment.
I borrowed online in Moola Lending for the amount of P3,000.00 with stipulated interest of 30% and 10% processing fee monthly on Sept 3. I was in dire need to finance my medication so I took the chance to borrow hoping I can pay it next month. The net amount I received is P 2,700 (net of 10% processing fee)
On Oct 2 , I paid P900.00 in 7eleven Dragon Pay for the 30% interest for the period covered Sept 4 to Oct 4,2017.
I received an email from them telling me to settle P1,200 prolongation fee on or before due date or pay P 5,540 plus 700.00 listing fee next due date.
In my analysis, they are computing 10% processing fee, 30% monthly interest, 700 listing fee on monthly basis.
Do they have the right to demand payment for the P5,540.00 next month aside from the payment that I already given of P 900 Oct 2 and the prolongation fee of P 1,200.00.?
Dear Atty.
My father borrowed amount of money which has 10% interest per month is it okay?
In some cases, credit card companies are actually charging 49% effective interest rate. As of January 2018, Citibank is charging a range of 43-49% effective interest rate in return for refinancing a single month’s balance due across a 12-month (up to 60-month) monthly payment plan. This is unconscionable.
what if you loan 1.5M and you failed to pay the interest of 30%? but you are willing to.pay the capital youve loan, but the person lend you the money insisted to pay the interest of 30% monthly plus 1%oenalty everyday, is it possible to sue the person who.lend the money
I am just soliciting advise from you guys. I had loaned an amount of P60,000.00 to a person with a promissory note to pay this in 6 months plus interest. What I understand of the loan was that I would be paying P12,000.00 per month for the next 6 months to fulfill the loan. However, when the time comes that I reached the 6 months period, and being it was December, I asked if I skipped the monthly payment and just pay on January plus additional interest. The person agreed, then she told me I will be paying 72,000 plus additional 12,000 for the interest for January. I was shocked because from what I understand that I would have fulfilled all my obligations. Still now I am paying the said loan. I don’t know if I can still continue paying. Please help. What legal remedies do I have for this?
Hi, I really need a help and wanted to be enlightened. Pls, anyone help me overcome from overthinking. Actually this is not my problem but to think that I was the guarantor for my Sister, it caused me stress a lot.
To start, last 2015 she was realeased by a lending company a total amount of 85,000php and the company said the interest starts right after flight to taiwan.Because actually that money will supposed to pay for placement fee howerver, her visa was denied so after a week my sister returned the money. She was informed that it has an interest of 7,000 php and she refused to pay for she really give back the wholesome of the said amount. Now after 6 mos. they contacted my sister that the money become double the amount of the said interst or more than that because of the 2% interest plus tha 5%penalty. This year they said it was 12,000( interest), 7000 the original amount of interest. And there is more 5% penalty which they did not break down or include to their warning sent to our barangay. Last time they said it ballooned upto 40,000 including the penalty. Pls. Help me what to do? Or is it really necessary to pay that so much interest?
hello po, anu po bang pwedeng gawin para maibalik yung land title ng lola ko? 200,000.00 po ang principal na utang , tumubo ng 1,180,000.00 , nakapagbayad po nga 680,000.00. the rest po na utang na 700k ay hindi na kayang bayaran. 2005 pa po ung utang, 13years po ang tubo nung una 4% tapos bumama sa 3.5 % .
Dear Atty,
I have tried a Cash Lending tru APPS or Applications and it turned out that their interest is so much higher and i refused to get that loan tru a credited padala center I barrowed P3,000. and they told me that i would only get is P2,500+ only and i will pay it in 7 days for P3,210 and if a failed to repay it for 4 days it will be charge to P3,900.
I just want to ask is this legal? base upon RA 9510 Section 4 (o) i have rights to dispute of this erroneos credit. Can you please make it clear to me.
Thanks,
Roland
I lend an amount of 4000 pesos to robocash and I need to pay it by 11 days for 5,320.it I failed to pay it with in 11 days they will charge me 4 % daily it’s been 20th day since the 11 days and my loan goes to 8,520. Is there any ways to stop the loan company to charge the daily 4% ?please help.
Hi. My mom borrowed a money from our relative with an 8% interest per month(or 96% per anum). They only have a verbal agreement for this. Now that our total debt went up 4 times the principal because our relative decided to compounded the unpaid interest. We cannot pay the total amount however we can pay the principal. I just wanna ask if this is legal?
Good morning i am katrinna yusop ex abroad nagtrabaho po bilang ofw sa riyadh ngunit 1 month lang po dahil sa pangit na gawain ng aking dating amo.. bago po ako umalis ay nagapply po aq ng ofw loan sa global dominion financing inc. At cinikap po nmin mghulog sa kbila ng aking kapalaran. Minsan ay nsa tamang ayaw ng byarang minsan ai nahuhuli. Ng aking tnhning ang aking balance laking gulat ko na kapag ka pala nahuhuli ang aking hulog ay 1000 ang interest.. kaya malaki pla ang aking balance dahil hindi pumapasaok ang aking bayad sa principal amount kundi sa interest lamang.. at may isa pong manager ng global dominion ang hindi maganda ang pkitungu saakin.. paano na lamang po kung my iba pang ofw ang mgapply skanila at gnon din ang mangyri ngbbyad lng ng malaking interest 1000 kada isng buwan kapag nhuli ng hulog kahti 1 araw lamang. Maaari nyu po ba ako g payuhan at tulungan?
Good day. Is the opinion on usury and unconscionable interest rates still valid to this day? Since this piece was first written in 2006, I would like to know if other bills were signed into law that would impact the opinion.
Thank you.
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