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loan shark... is there a way out if you're already trapped?

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vetzon0501


Arresto Menor
Last February 2011, i borrowed an amount of Php60,000 from a friend whose business is to lend money. She claims that the money she lent me was from another financier. I promised to return the amount in two month's time. She asked me to make a small note indicating my promise and that within that span of time before i return the amount, every two weeks, i will have to hand her an interest amounting to Php12,000. I was not able to return the full money loaned due to a family dilemma. So, i have been paying interest every two weeks since then until now...which has been a huge load of heaviness on my shoulder since i'm a single mom raising four kids. Sir, is there a way out of this? I searched for legal stories like this and learned that this was "bawal"... yet, is there a point of filing a case against this? Crying or Very sad

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why did you agree on the rate of the interest in the first place?

agreement between parties is binding and considered the law of between them. however, if the interest is excessive, unconscionable, exorbitant and shocking to the moral conscience, then the court can temper the same.

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vetzon0501


Arresto Menor
i have agreed on the interest knowing that i would be able to pay it off in just a short time. i have not been aware of the interest rate until i realized i was paying about P116,000 already outside of the principal amount. someone also forwarded those words you mentioned above as quoted from an article by Sir Chiz Escudero.
Sir, when you say "the court can temper the same"... forgive me po, but what does it mean?

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did you sign a written contract? interest is not enforceable if it is not in writing.

the court can temper means the court can reduce the interest if the same is exorbitant and excessive. this scenario happens only if there is already a final judgment assuming a civil case for sum of money is instituted against you.

i suggest do not wait for a case to be filed and just settle the case amicably depending on your capacity to pay.

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vetzon0501


Arresto Menor
i see... i went to them last week (the loan agent and the financier) and asked for forgiveness that i won't be able to fill up my interest for the week anymore as my job has gone too slow and bookings are way too scarce (lean months). i have laid down my incapacity to shoulder the interest but i will never turn my back on my loan but i need them to allow me time to come up with the full principal amount in two weeks at least. i was planning to save up to complete the amount na, hoping that the interest, at least, would stop na. i was filled with shame, crying & begging them to understand my situation. they, strong-faced, told me that it is not their problem anymore. what has been agreed on has to be done and "not paying the interest anymore" is not acceptable. i showed them that i only have P1,040 in my pocket to support my family through the weekend. the loan agent (who i thought was my friend)took my P1,040, left me crying leaving me with a warning never to fail on the next week's interest...

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