Unconscionable interest

Good day!

I am new member and I need a legal advice regarding loans. Sometime in 2008, I borrowed a total sum of P100,000.00 payable for 18 months from a Cooperative where I was a member. The interest rate was 3% per month or 36% per annum, diminishing rate. A friend signed also as a co-maker. One month later my employer asked me to assist another branch for one year. Still, I continued paying the loan every month. Sometime in 2009, I texted the collector to ask for the remaining balance but I received no reply. According to my monitoring, only P10,000 was left unpaid. In 2011 I resigned from work and started my own business. Since 2009, I heard nothing of the said loan and since I already relocated, I was not able to visit the Cooperative again. However, just this month, my friend informed me that a Demand Letter addressed to both of us was sent to her, demanding that we pay the total amount of P43,000.00 within 7 days. In addition to that, we were also asked to call the Office with our proposed mode of payment.

I decided to ask your advice first before I call the Office. I want some advice regarding the following:

1. Whether the interest rate is fair or unconscionable.
2. If I want to pay only the unpaid amount, could I ask for the Cooeprative's records? Because I am not sure of my own payment monitoring.
3. If I won't pay, could they demand payment to my friend?
4. Can I spare my friend from this?

Thank you.

Good Day!

I am also a new member and perhaps that is why i landed at this site is i need a sound advise regarding loans. Last 2004, i borrowed from a bank where in it was presented to our company. Since it was 8 years ago, i dont remember much of the details. As far as i know, i paid my full initial loan. After clearing my first loan, i made a second loan. This time it was around, P100K-P130K. Now, i have been paying this loan too. In April of 2006, i have left the company i was working with where in it was tie-up with the said bank. Since it was presented to us by our company, all along i thought it was company loan. So when i left, i thought that any outstanding loan balance will be shouldered by that previous company. there were several of us who left the company who have larger loans than i have and had the same notion.

So i left the company in good faith, knowing that i dont have to pay anything on my loan. I think it was still around P80k that is still left for me to pay back then. If i do owe anything from the bank, definitely they will contact me and remind me that i still have to pay for it after i left my previous company. However, never did i received anything, never did i received an email, a phone call, a text message or a letter sent to my home. Nonetheless, i assume my previous company paid for it.

Now, just last week, may 25 2012, a relative of mine contacted me that they received an information that i am hereby ceased to be arrested for civil and criminal case. there was a name and number for me to reach. Contact person is a fiscal. So i called up the fiscal the following monday and introduced myself. He then referred me to a law firm that handles my case. So i called that law firm and introduced myself.

The atty. said that i owe the bank a total loan amount of P600,000.00 pesos due to compounded interest. He asked for my email address so that he can send me the details. so i complied. When i got the email, it was demanding me to pay the whole amount. i was given with 3 options. first is pay in full, second, 3 months term and lastly 6 months term. i have to pay the said amount by may 30, which was 3 days from the day i received the email. Since then, atty. keeps on texting me about the payment. I told him that i cannot pay a big amount like that in just 6 months, nor in a lifetime. I asked him if he can request to the bank that the amount be lowered. Then atty said that i can pay an initial of P50k, but still that is a big amount to pay. Then i negotaited, he said P25k and then it went down to P10k. Came May 30, today. I told him that this is a surprised for me and not part of my obligation and payables. i only earn a few bucks and is only enough to feed my family. i asked if he can move to June 15. He agreed but then again he said P50k on June 15.

If i owe the bank for sure i am willing to pay them, but not this big. I did not P600k in the first place for me to pay for. What should i do in this case that it is already with a law firm and demanding payment?

Thank you.

marikit, that is fair. it was your obligation to keep paying the loan even if you did not hear from them. you can ask for accounting, and they can claim from your friend.