warrant of arrest for an unpaid loan with a lending company - is thislegalor can be consider harassment?

Is it true that a lending company can request issuance of warrant of arrest for either the borrower or comaker if their loan is not religiously paid? Initial loan was for 50k with 5% interest, no PDC involved. We only had paid in 2 years time only a lump sum of 40k. The lending company had called the primary borrower who is currently based in UAE and demands her to have a family member visit the office this coming Monday and bring 10k as partial payment since the loan was long overdue. We said it was okay to have someone meet them at the office since we are willing to make settlement, just had financial crisis. We requested for an extension of the 8th of November for the 10k they demand since she gets her salary by then but the lending agent told her that will not be possible since it was long overdue and IF we fail to meet their demand they will request for a warrant of arrest. They also threaten her that they will call her employer too and tell them about the situation which we fear because her boss does not like receiving phone calls from collection agencies for her debts. Is their demand and action legal? Can't we request to make settlement to pay for an amount that is tangible instead of just agreeing and not be able to pay?
Is it really okay for them to threaten us calling the employer which may cause her to lose her job? Her employer by the way is not in any way aware of the loan since it was a transaction done here in the Philippines prior to her leaving again for UAE.
Please help us attorney. We understand our obligations. We also just want to know our rights too. She is currently suffering from nervous break down, it turned out as harassment to her.
We will really appreciate it if you'll be able to respond immediately so we will know what to do..
Thank you and more power.

warrant of arrest for an unpaid loan with a lending company - is this legal or can be consider harassment?


Is it true that a lending company can request issuance of warrant of arrest for either the borrower or comaker if their loan is not religiously paid? Initial loan was for 50k with 5% interest, no PDC involved. We only had paid in 2 years time only a lump sum of 40k. The lending company had called the primary borrower who is currently based in UAE and demands her to have a family member visit the office this coming Monday and bring 10k as partial payment since the loan was long overdue. We said it was okay to have someone meet them at the office since we are willing to make settlement, just had financial crisis. We requested for an extension of the 8th of November for the 10k they demand since she gets her salary by then but the lending agent told her that will not be possible since it was long overdue and IF we fail to meet their demand they will request for a warrant of arrest. They also threaten her that they will call her employer too and tell them about the situation which we fear because her boss does not like receiving phone calls from collection agencies for her debts. Is their demand and action legal? Can't we request to make settlement to pay for an amount that is tangible instead of just agreeing and not be able to pay?
Is it really okay for them to threaten us calling the employer which may cause her to lose her job? Her employer by the way is not in any way aware of the loan since it was a transaction done here in the Philippines prior to her leaving again for UAE.
Please help us attorney. We understand our obligations. We also just want to know our rights too. She is currently suffering from nervous break down, it turned out as harassment to her.
We will really appreciate it if you'll be able to respond immediately so we will know what to do..
Thank you and more power.

In addition, can we possibly request to lessen the interest since it will really be difficult for us to be paying it off; It is really a struggle as it is now and much more if it will continue to earn interest. 5% interest of 50k in 24 months is already 60k, which will basically mean we have not even paid the interest part. Is there no limit for a loan to stop gaining interest?

im no lawyer or anything, but as far as I know, they cannot request issuance of warrant arrest just because you have unpaid debt with them. More so that PDC's are not involved. I for one was a victim of such harrasment just because my relative there was not paying my loan with them for 2 months. I work in the banking sector here in qatar and have worked for banks in the philippines as well, so I am pretty much aware of collection tactics. my advise, don't fall for this harrassing tactic, stand your ground and fight with them. don't let them degrade you and harrass you. equip yourself with the knowledge of basic laws and fight back. most of these collectors don't even know half of what they are talking about so the trick is to outsmart them. I took out a loan for 100k in a lending agency there and issued pdc's, and for 2 months, I was unaware that my relative was not depositing the payment until a collector messaged me on ym. He was claiming that I had bounced cheques and stuff, and that he will report me to my agency, blah blah blah. I stood my ground, asked for bounced cheques which he can't show coz there weren't any, I asked for my contract which they dont want to provide, to which I told him never to contact me anymore or I will sue them. these people wont really call you abroad and pay for overseas charges just to harrass you, so don't be afraid. unfortunately though, we don't have the law that limits interest rates anymore, so what I did, I hired a lawyer to negotiate with them and I just paid off the entire remaining balance less 75% of the interest. the 75% savings I got is what I paid my lawyer, I did that not to save money but to piss on the lending firm for harrassing me. lol

That was really helpful!

Few more questionsthough.. What if there werePDC's involved with an acct that they had assisted you to open for the purpose of having the loan paid (and more likely so that they will have something against the borrower); however the bank itself (Banco Filipino, to be specific, had closed its business) which basically left u of 2 valid PDCs. Will that still be taken against you?
Also, I personally went in their office today to make arrangements however they insist of us paying 10k right now otherwise they will pursue with the case( even after I pleaded for an extension until the 8th of next month). Their legal dept as how they call it stated that they will request issuance warrant of arrest and I answered "may nkukulong ba sa utang?" then she said u might know something but they will make sure they will have it filed as a case. She even said if my husband,who is the co-maker, had been the one who went there today, they will have him immediately brought to prosecutor's office. They also threatened us of making sure it will reflect on his NBI clearance. Is any of her statement true?
Just in case we get help from an attorney, what are our chances? loan amount is 50k, 5% interest placed dec 2010. pmts posted on their end is 32500. as of now, it went up to 140k, that is already excluding the 32500 pmt, and that included 2200 penalty per PDC issued with the bank that has closed.
I hope you can help me further....

if there were pdc's involved, then make sure they don't bounce. if they claim it has, then demand from them a copy. I doubt though that they can do anything with the 2 remaining cheques because as you have said, the bank has closed and your account would have been closed as well. legally though, I am not sure if the cheques would still stand in court. I would suggest you ask the lawyers in this site about that.
again, don't submit to their threats. it would be best if you record their legal threats because as far as i know, you can use that against them if they are saying that they would sue you just to collect money but they cannot really legally take action on it.
also, never plead with them. they need your payment, so its not for them to decide. you have to be firm and tell them they can take it or leave it. it shows you are willing to pay but they don't want to compromise with you.
the objective of these collectors is to get money from you, if they can't they will just try to piss you off or bother you until they can. don't give them the pleasure by showing them you are affected by what they are telling you.
regarding the nbi clearance, if you will go back to previous posts in this forum, you would know that it's nothing but BS.
with the amounts you mentioned, i strongly suggest you get an attorney. why are they penalizing you for the pdc's though? just because the bank closed, they charged you 22,000? if so, that is just absurd and that is why you need to get a lawyer.