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usury of interest

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1 usury of interest on Tue Apr 12, 2011 12:17 am

raindrops0321


Arresto Menor
i have a friend who is faced in a debt she has to pay for her grandma who has mortgaged their house and lot in 2007 for 60,000 pesos. her grandma wasn't able to pay it since then. and now that she is to pay the mortgage, it has ballooned to 420,000 pesos in less than 4 years, explaining that 360,000 is the interest for 3 years+. she said that grandma and the debtor had a written agreement about it. but i also know that, stipulated interest rates are illegal if they are unconscionable and the Court is allowed to temper interest rates when necessary.

what can you advise about this matter?

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2 Re: usury of interest on Tue Apr 12, 2011 1:37 am

attyLLL


moderator
the rate of interest is valid unless a court declares it unconscionable. she should file a case for reformation or resolution of the contract.


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