Comments on: Excessive and unconscionable interest rate

By: badet

badet — Wed, 07 Dec 2011 06:24:10 +0000

how can a restoration of usury law be profitable?

By: lianlhen

lianlhen — Sat, 04 Jul 2009 16:56:32 +0000

my mother has been indebted with 50k and was charged 8% for interest monthly. She was able to pay 61k from mar 2005-july 2006 on her own list. however now that the attorney in fact of the creditor is now claiming the money they have lend, i found out from the personal notebook of the creditor that my mother still pays during 2007. due to this i found out that she have paid more than 61k.

as agreed upon by the creditor and my mother, our house has been the collateral. however the house is located at a government-owned land, and the rights holder is not my parents but my grandmother. another thing the house is conjugal and my father has no knowledge regarding the debt and the collateral made by my mother.

my questions are:
1. is the contract valid regarding the house as collateral without my father’s approval and signature?

2. Can we appeal on court regarding the amount my mother have paid and for reconsideration of the interest rate being unconscionable?

By: Lending interest rates at Atty-at-Work

Lending interest rates at Atty-at-Work — Fri, 15 Jun 2007 04:55:55 +0000

[...] Indeed, with the suspension of the Usury Law and the removal of interest ceiling, the parties are free to stipulate the interest rates to be imposed on monetary obligations. However, while the Supreme Court recognizes the right of the parties to enter into contracts, this rule is not absolute. (Read entire post here) [...]

By: Atty. Fred

Atty. Fred — Sun, 29 Oct 2006 01:28:52 +0000

As mentioned above, whether a particular rate is unconscionable depends on the facts of each case. Interests and penalties are different, and may be separately considered valid (or invalid) depending on the circumstances.

By: lawenthusiast

lawenthusiast — Tue, 24 Oct 2006 11:38:33 +0000

hi, some lending institutions charge more than 12% per annum rates and at times charge penalties for failure to pay on time on top of interest, could you say this is unconsionable? will the courts temper this? can’t just exhorbitant penalty substitute the payment of
interest?

By: Atty. Fred

Atty. Fred — Wed, 20 Sep 2006 09:05:46 +0000

Others talk directly with people from the credit card company, although most have been told to discuss the matter with the collection agency because the account had already been referred to that agency. Still, there are instances when a credit card company directly responds to proposals, so it’s worth the try. The “see me in court” option that you mentioned should be the last recourse.

As to the reasonableness of the 7%, this is gauged by taking into consideration all the surroundng circumstances (e.g., amount of loan, amount of previous interests/penalties charged and paid, etc.). I cannot ask for these details (specifics of your case) and give an opinion, as it would be tantamount to a legal advice. I hope you understand that ethical considerations prohibit us from doing that. Nevertheless, this general issue may be covered in our subsequent articles.

By: Romy Escarilla

Romy Escarilla — Tue, 19 Sep 2006 21:41:17 +0000

How about the 7% interest/penalty imposed by collection agencies of some credit card companies on delinquent accounts? I informed them of my intention to pay my account on installment. They insisted that if the installment is for one year, they will charge 7% interest per month, maybe because they know that the Usury Law is now inexistent. I requested for a fair interest rate, a lower rate based on the remaining balance. They refused to listen. Perhaps they would want to see me in court. Is there an alternative for me?