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78% per annum interest rate...legal pa ba?

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1 78% per annum interest rate...legal pa ba? on Thu Jan 23, 2014 12:10 am

Debtor


Arresto Menor
Hi po Atty. I just want to know if an interest rate of 78% per annum or 6.5%/month is "legal". Even the interest na naka-karga sa principal amount eh hindi po diminishing. I owe this Lending company a principal amount of 135,000 pesos. Meron pa silang processing fee na around 6% yata so ang nakuha ko na total proceeds ay umabot lamang ng 125,000. I was able to pay for the past 5 months. Pero with unforeseen financial crisis, medyo nag-lapse ako ng one and a half months. I issued 24 checks dahil ang payment terms ay every 15th. Nag loan ako last June 2013 and updated po ang account ko until December 2013. Today, dahil nag-bounce na mga checke ko, mag-file daw sila ng Estafa and Bouncing check law. Just this January, i again paid a partial payment of 10,000 pesos to show how sincere I am in paying my loan. In total I was able to pay 110,00 pesos already to the lending firm.

Now, for each lapse payment, meron silang late payment charge na 1,500 pesos. Apart from that, each day that passes na overdue yung account ko, they would charge an additional 1% per day. In total, yung arrears ko amounts to 83,000 for December and this January...pero yung latest statement of account ko says that I now owe 98,000 pesos in arrears including the penalty of 1,500 and yung 1%/day.

Are all these penalties legal and binding. I did sign a contract with them when I got the loan thinkin I can pay it easily. Pero dahil nga po sa financial crisis that I am going through, medyo nade-delay ang payments ko.

Can I still ask this lending form to waive all penalties? Do not get me wrong, I am very willing to pay and I am still have the capacity to pay the lending firm. Its jsut that ang bigat sobra nung interest rates and penalties.

They are now threatening to sue me in court with the Estafa and Bouncing Check Law. Its just that I find it really unfair since I communicate with them regularly and I do show them that hindi ako nagtatago at magbabayad talaga ako. Malaki na rin po ang naibayad ko sa kanila.

Any response is deeply appreciated. I only want your expert opinion before I seek a lawyer, and if you know a good lawyer regarding these types of cases, mas maganda po.

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2 Re: 78% per annum interest rate...legal pa ba? on Tue Feb 04, 2014 11:02 pm

Debtor


Arresto Menor
Can anyone with enough legal background respond? TIA!

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