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Non-payment of loaned items

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1 Non-payment of loaned items on Sun Sep 12, 2010 10:04 pm

akustik82


Arresto Menor
Greetings lawyers of this site!
Before I go on with my issue, I just want to commend you for devoting time to provide advice to mundane citizens who do not have the luxury to get instant consultation from hired private legal counsels.
Your cause is a very noble one. I hope more power to you all and pray that this site will receive a lot of support not just from ordinary people like me, but also from the government (if possible). . .
Now, let me move on with my concern. I am a newbie small-scale entrepreneur. One of my latest gigs was dealing bottles of 250 ml Victoria's Secret perfumes, which were supplied by my cousin from Dubai. I deal these perfumes to my officemates. I don't collect one-time payments but actually loan these perfumes in an understanding that the total amount will be paid in two pay-days.
Now, I have this one co-worker whom I doled out perfumes amounting to Php4,000. This person was not able to pay the total due amount when the two pay-day period had elapsed due to numerous excuses (e.g. that she used the money that she would have paid me to buy ulcer medication, etc.). I understand that times are hard, so I gave her another chance to pay her debt on the next pay day. But when the agreed day arrived, she already resigned from work. I know that she was able to get her last pay plus overtime incentives and that she got a total pay of about 20,000 upon leaving work. The problem is that she only paid about PHP1,000 on that day. She promised to settle the remaining Php 3,000 balance on the next day since she said that she do not have extra cash with her. As always, she did not fulfill her promise. I have tried calling and texting her reminding her of her obligation, but she is not responding.
Now, I know that I cannot file a criminal case against her since the items I dealt to her were considered sold when I handed them and that this will just be a case of unpaid debt. I also know that 3,000 is not a big amount. But money is still money. My mom is going thru chemotherapy and I every penny to me is very important.
I went to their house to collect her debt, but she is not their. I spoke with her father and was told that defaulting on loans and incurring debts has been a habit of his daughter. The father said that he won't mind if a case will be filed against her daughter. . .
My question is what specific case can be filed against her? Will it be a small claims case? If not, please enlighten me. . .

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2 Re: Non-payment of loaned items on Thu Sep 16, 2010 6:21 pm

attyLLL


moderator
good job on researching first. i concur with your idea that a small claims case is your best remedy. unfortunately it may cost you that much just to file a case but you can ask the court to award costs.

before you go to litigation. send a demand letter first by registered mail with return card.


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3 Re: Non-payment of loaned items on Thu Sep 16, 2010 9:15 pm

akustik82


Arresto Menor
thank you for the response, attyLLL.
i have been thinking on filing a complaint in my debtor's barangay first to amicably settle everything. we are residences of different cities, by the way. based on my research, it would not serve my interest to acquire a certificate to file action from debtor's Lupon and that I may instead send a demand letter as you have described. and if I do not receive a response from debtor, the proof of service and receipt of the demand letter would be sufficient, along with other evidences (i.e. affidavit from witness, transcript of text messages,etc.) to fill-up a small claims form and proceed with litigation.
Your response on this latest query of mine would be greatly appreciated.
Thank you very much and more power to your cause!

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4 Re: Non-payment of loaned items on Fri Sep 17, 2010 10:28 pm

attyLLL


moderator
not sure what your question is. but the most important thing to prove was that you delivered the perfumes to this person and that she has the obligation to pay for them.

bgy certification is not necessary if you live in different cities or municipalities. good luck.



Last edited by attyLLL on Sat Sep 18, 2010 11:54 pm; edited 1 time in total


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5 Re: Non-payment of loaned items on Sat Sep 18, 2010 7:30 pm

akustik82


Arresto Menor
sorry for being vague, atty. . .
you have answered my question, though--that brgy certification is not a requisite for me to proceed with a small claims case.
if you don't mind, i have another question: is it necessary to have a demand letter notarized by an attorney or can i draft it myself and send to the debtor?
will look forward to your response.
Thank you very much!

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6 Re: Non-payment of loaned items on Sat Sep 18, 2010 11:55 pm

attyLLL


moderator
please note my correction in my earlier post. bgy certification is not necessary if you live in different cities or municipalities, not different barangays.

you can draft it yourself. keep it courteous but make it clear that you are requiring him to pay.


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7 Re: Non-payment of loaned items on Sun Sep 19, 2010 8:35 pm

akustik82


Arresto Menor
got it. . thanks for clearing up everything, atty.
God bless and more power!

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8 Re: Non-payment of loaned items on Fri Apr 15, 2011 12:09 pm

Legionatorz


Arresto Menor
I have follow question about this issue. What if the loaned items is still available but the person who loaned it is unable to pay for his monthly dues, what would be the best option for that? To re-poses the items or file additional charges (interest) against that person and make him pay the backlog amount?

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9 Re: Non-payment of loaned items on Sat Apr 16, 2011 10:29 am

attyLLL


moderator
assuming that it is a purchase on installments, it will be up to you to choose between the two, but in either case, if the debtor will not pay, you have to initiate a complaint for collection or repossession of the item purchased.


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