My wife had a surgery last year and due to HMO Coverage failure. I owe a big amount of money to a hospital, they wouldn't allow us to leave unless we provided them a collateral and made arrangements to pay 3,000 php per month. Which I know I could not pay but they did not want to accept my request to pay it for 1,000 monthly. I used the house that my mother both for us but the title has not been transferred yet to our name. I have received a text message from them stating that if I do not settle the full amount. They will be imposing a 12% interest. My question is, is this legal and are they allowed to do such things. As far as I can recall only financial institution are allowed to do this.
Please enlighten me.