I was surprised to know that I have a PhP 1,000 SSS salary loan which I allegedly obtained in Feb 1981. I never received any demand letter from SSS. I have no recollection nor record to show that I received !,000 pesos from SSS. I asked SSS to investigate. SSS no longer have a copy of the loan document or application that is usually signed by the member in applying for a salary loan. They do not have proof that they sent me a demand letter to pay the overdue account. The employer failed to deduct the alleged salary loan from my last salary for March 1981 which I collected only in 1984. SSS has been charging 6% interest per annum plus 12% per annum penalty .. a total of 18% p.a. which is almost credit card rate of interest. As a result the 1000 loan has balooned to now 14,000.
1) Is SSS obliged to show proof that I signed a loan agreement with them? Can they just rely on their accounting records that there was a loan without loan documents?
2) Am I obliged to prove that I never received the loan?
3) Is SSS required to show they sent me a demand letter to incur delay and therefore entitle them to charge penalty?
4) I asked SSS to show a copy of the usual salary loan application circa 1981 but they cannot provide a copy. What proof should SSS present that they have this 12% p.a. penalty to charge long outstanding account in addition to the 6% interest ?