Perhaps you’ve heard someone making threats to file criminal cases against debtors who fail to pay. On the other hand, perhaps you’ve heard about the rule that no one can be imprisoned simply because of a debt in the Philippines. The prohibition against imprisonment for a debt is a basic right enshrined in no less than the Philippine Constitution. Article III of the Constitution reads:
“No person shall be imprisoned for debt or non-payment of a poll tax.”
REASON FOR NON-IMPRISONMENT
The Supreme Court explained the rationale for this prohibition in the case of Lozano vs. Martinez:
. . . Viewed in its historical context, the constitutional prohibition against imprisonment for debt is a safeguard that evolved gradually during the early part of the nineteenth century in the various states of the American Union as a result of the people’s revulsion at the cruel and inhumane practice, sanctioned by common law, which permitted creditors to cause the incarceration of debtors who could not pay their debts. At common law, money judgments arising from actions for the recovery of a debt or for damages from breach of a contract could be enforced against the person or body of the debtor by writ of capias ad satisfaciendum. By means of this writ, a debtor could be seized and imprisoned at the instance of the creditor until he makes the satisfaction awarded. As a consequence of the popular ground swell against such a barbarous practice, provisions forbidding imprisonment for debt came to be generally enshrined in the constitutions of various states of the Union.
This humanitarian provision was transported to our shores by the Americans at the turn of the century and embodied in our organic laws. Later, our fundamental law outlawed not only imprisonment for debt, but also the infamous practice, native to our shore, of throwing people in jail for non-payment of the cedula or poll tax.
In other words, no one can be compelled to pay a debt under pain of criminal sanctions (estafa is a different matter). No one can be imprisoned for non-payment of debt. The remedy of the creditor is civil in nature.
Let’s examine some laws that were questioned, albeit unsuccessfully, on the ground that these laws violate the constitutional prohibition against non-imprisonment for debt.
BOUNCING CHECKS
Bouncing Checks Law (BP 22) does not punish the non-payment of an obligation. The law is not designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making of worthless checks and putting them in circulation. Checks have become widely accepted as a medium of payment in trade and commerce, and if the confidence in checks is shaken, the usefulness of checks as currency substitutes would be greatly diminished. When the question was resolved in 1986, it had been reported that the approximate value of bouncing checks per day was close to 200 Million Pesos, thereafter averaging between P50 to P80 Million a day. (Lozano vs. Martinez)
TRUST RECEIPTS
The same argument was raised against the Trust Receipts Law (Presidential Decree No. 115). The passage of P.D. 115 is a declaration by the legislative authority that, as a matter of public policy, the failure of a person to turn over the proceeds of the sale of goods covered by a trust receipt (or to return said goods if not sold) is a public nuisance to be abated by the imposition of penal sanctions.
It punishes the dishonesty and abuse of confidence in the handling of money or goods to the prejudice of another. The law does not seek to enforce payment of a loan. (Tiomico vs. CA)
CREDIT CARDS
Under the Access Devices Regulation Act of 1998 (Republic Act No. 8484), anyone who obtains “money or anything of value through the use of an access device, with intent to defraud or with intent to gain and fleeing thereafter” is criminally liable.
R.A. 8484 provides for a presumption: a cardholder who abandons or surreptitiously leaves the place of employment, business or residence stated in his application or credit card, without informing the credit card company of the place where he could actually be found, if at the time of such abandonment or surreptitious leaving, the outstanding and unpaid balance is past due for at least 90 days and is more than P10,000, shall be prima facie presumed to have used his credit card with intent to defraud.” We are still waiting for the test case on this.
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hi mga sir and mam.. itatanong ko lang may hiniraman ng pera ate ko friend nya.. total of 35k sya pero ngayon ang sinisingil nya eh 48k na.. dahil sa tumubo na daw.. ang lumalabas 5-6 sya.. 2 months na hindi nababayaran ng kapatid ko dahil may inuunang tapusin na utang pero no plan para takbuhan yung nag pautang.. pero yung nag pautang keep on harassing us na ipapakulong ate ko.. ang tinutubuan parin nya yung pinautang nya to think na nag advise na kami na baka pwedeng wag na tubuan kase di na nga makabayad tutubuan pa.. ano kayang pwedeng ifile na case against dun sa tao na yun???
advise po sana kayo about our situation.. thank you po..
Antayin mong sila ang magkaso kasi ikaw yung humiram at ang ending nyan magbabayad ka sa capital lang
Good day
Tanong ko lang po. Umutang ako sa isang online loan. Kaya lang hindi ko po nabayaran ng buo. Actually 3k lang yung inutang ko. Pero nang dahil sa na default na ako. Umabot daw ng 12k. Dapat ko daw bayaran. Pero nagbayad muna ako nga 3k. Kasi yun lang muna ang kaya ko. Pero sabi nila. Mag accumulate daw yung utang ko nga daily. Kay lumubo na daw. Maraming tumawag sa akin. Sabi they will file a case for abandonment and estafa. Pero hindi ko naalala na nag affix ako ng pirma ko. Lahat enoded. Walang pirma. Totoo bang makakasuhan ako ng estafa or abandonment? Kelangan ko na daw bayaran kasi nakasalang na daw yung kaso para sa akin. Ano ba gagawin ko?
Same case din yung sa PS Bank loan ko. Pero nakabayad na ako ng Php30,000 way back 2008. Bale interest na lang ang natira. Aba, last week may nagpunta sa bahay na kesyo taga-PS Bank daw kuno pero I know they are collectors na nagbabaka-sakali. Parang nangha-harass sila. Can I file a case against them?
Legal yung bank declared yan sila sa sec di katulad ng online loans mga colorum
Hi I have borrowed 7k from an online lending. They only disbursed 6k to my bank account because of some deductions like service fee etc. Then they told me I will paying P9100 for my 7k loan.
I were not able to pay on the due date. And they said they will file small claims on court if I don’t pay immediately 10500. I was shock by how my loan got increased. Are these computations legal? What I mean from 7k to 9k and now 10k+ ?
Pananakot lang yan na kakasuhan di yan sila registered sa sec dahil sa sobrang laki ng interest fraud yan sila, pwedeng sila ang kasuhan sa bagong batas ni duterte na bawal na ang bombay eh mas malaki pa sa bombay. How dare them!
good day po, just want to ask.. may utang po mother ko sa banko then they sent in a letter, upon receiving (kase ako yung naka receive) sabi ng nagdeliver kailangan ng number – in which sabi para sa record nila na nareceived ang letter. after a day or two biglang me tumatawag na sakin ng paulit ulit na ibigay ko number ng nanay ko… just want to ask if the law firm can harass me or force me to give my mothers details?
Also another text they sent me na Estafa ang ipapatong nila na case for my mother. Can a bank debt escalated to an estafa? kase po as far as i know parang pagsinabing estafa eh fraud yun.
Salamat po
May outstanding balance po ako hindi ko pa nabayaran sa kdahilanan na gipit pa po ako ngayun,umutang po ako ng isang appliances sa isang sikat na appliances store at dahil sa ingganyo ng sales clerk ay napakuha po ako ng wlang downpayment tru sa isang agency,at ang contract na pinirmahan ko ay mula december 2017-march 2019,or 15 months ko syang huhulogan sa pagbayad,kaso last november 2018 pa po ang last ko bayad tru bayad center,at until now hindi ko na po nabyaran ang monthly hulog ko doon,at patuloy po ang send ng text message nila about my balance hanngang sa nag send sila ng mga warning message na ngsasabing pag di ko raw nabayaran ay they will take legal action…ang tanong ko po ay possible po ba ako makulong kung sakali hindi ko pa nabayaran hanngang matapos ang march 2019 next month? Please need your advise.thanks. Napz
Good day! Meron po akong existing auto/car loan with Eastwest Bank. Mula ng narelease siya saken di ko na po nabayaran yung monthly amort niya starting 1st month dahil nawalan ako ng trabaho. Bale down payment lang po talaga. Bale 5 months unpaid na po siya. Natatakot po ksi ako dahil may pananakot yung collection agent at dethreat saken. Makukulong po ba ako nito or dapat ko na lang isurrender yung unit? Ngayon po kasi pwede ko na mabayaran pakonte-konte yung balance since back to work na ako. Salamat po sa advise?
hi ask ko lang po marami po akong utang online lending hindi po ako nakakabayad at tumataas ang interest nang hindi ko pagbayad. tanong ko lang po kung hindi pa ako nakakabayad dahil sa financial problem po pposibilidad po na makulong ako sa hindi pagbayad sa online lending. please give me advise. Nakikipag usap naman ako na unti unti ko bayaran sila kaso ayaw po nila pumayag ang gusto nila buo na babayaran mo at kasama interest. Natatakot na po ako kasi po kung makukulong kawawa naman mga anak ko. Sana mabigyan niyo po ako nang advise
mgndang arw po mkukulong pob ang tao once n ngmit ang srli nyang facebook acct.gnmit kc ng dati kong aswa facebook ko nanloko sya naipost nko s facebook s hlgng 1k n ipinadla nung muslim n mg aswa pero lalki ang ngpdla and d kopo cla kilala or namimit p tntnkot nla ako n makukulong ako n ipppot nla ako sna msgot nyopo s hlgng 1,000 e makukulong pob ako and po pla gusto mangyri ng mag aswa pra idelete ung post ung 1k n ipndla dw nla e gwing 10k un lng dw kilngn pra mtpos
Hi guys, mag join po kayo sa pinoyexchange.com blog para ma advise kayo at magkaroon ng idea tungkol sa mga unpaid debt lalo na sa credit card. lahat po ng katanungan ninyo doon mo makukuha ang sagot basahin lang ang trend simula sa umpisa.