collections

hi. good day . I want to seek legal advise on what to do with my personal loan. I've been paying religiously before, then financial maters came up. my acct was sent to collections handled by a law firm. the bank which I loaned from turned me over to them. now they are txting me of order of distraint that will be issued by a rtc branch in makati. I called them up and informed them that I am ready to make payments on my acct. come by july.
but the person I was talking to, unfortunately is forcing me to make a large amt of money which I cannot produce at a sudden. even told me I already have a warrant of arrest. where I dnt even receive any court invites. now he's forcing me to fax a promissory note with the amt he's forcing me to pay. should I bite the amt and promissory note where I get to sign again and I cannot make that amount in a very limited time frame he gave me? he's threatening that they will file the case if I dont make that specific amt hes asking on that day they wanted it. I can only pay the usual amt i pay them before which is a monthly of 3,000 php. please help me. should I send them a promissory note or ignore it and just pay the usual payments I make at the bank.the promissory amt they're asking is really too much.pls. help me. thank you and God Bless!

first, it is not a crime not to pay your debt. this talk of a warrant of arrest is bull. challenge him to produce a copy or tell you which court the case was filed. you can file a complaint for unjust vexation against the collector, even against the lawyers of the law firm who engage in lies to make you pay.

write a letter to the law firm stating that their collector said and ask which court the case is filed. send it via registered with a return card or bring it there personally.

yes, you can keep making payments. if they don't give this back, then it should be reduced from your payments. you are still liable for the loan, but at least you are making payments.

yes, they can only file a civil case against you. they are resorting to these tactics to make it easy to collect.

thank you atty. another question if you don't mind. they are forcing me to pay on the third of july which is like 3 days from today. I stated that I can make my usual payment of 3000php on the 15th which is my next payday. but he is insisting of a 10k payment on the 3rd of july. and that I should fax a promissory note that I'm making a payment of that amt. should I just ignore the promissory note they're asking and just make my payment on the 15th for the usual amt? what if they file the case before the 15th? thing is I already showed my intentions of paying them the usual amt on the 15th and so on. and also why are they stating a very huge amt almost doubling the amt. I loaned? I made a lot of payments before. Is it legal for them to continuously add fees on top of it? isn't there a limit for maximum fees to be added? can I question that too as well atty.? pls.advise me of what would be the best option atty. with regards to this matter.thank you, more power, God bless!

how much is the amount involved and how much is the interest?

the amt was 38,000php and with the interest amt is 58,000php. payable in 18 months. now the collections agency is asking me for the amt of 79,000 php wherein I made payments before AS well. this is too much interest

you can argue that the amount of interest is unconscionable. if they file a civil case against you, the judge will determine the proper interest.

attyLLL wrote:you can argue that the amount of interest is unconscionable. if they file a civil case against you, the judge will determine the proper interest.

Hello po. What is the maximum interest usually ordered by court that can be considered 'conscionable' when someone files a case claiming for sum of money?

the rule is that there is actually no cap on interest, but the court has invalidated loan agreements when the rate of interest was considered unconscionable. it depends on the circumstances and the judges. 3% a month on a short term loan was allowed. in another case the credit card company rate of 3.25% per month was invalidated, and replaced with 1% per month.

in all cases, the principal is held to be payable.

i had this same issue and i posted a topic already.
my initial loan amt was nearly 80k, from that amt they even deducted the balance from my first loan when i renewed so my first term wa fully paid, i was only able to net around 60k when they released my 2nd term for about 6 months i was able to pay but as i posted i had problems.
they are forcing me to pay one time more than 100k which in anyway i calculate i dont know how it got that high
now i received an email sayin its nearly 250 k...threatening me of filing a CRIMINAL CASE
email sent had grammatical errors and was sent only from a @yahoo.com email address