can stop payment with valid reason can be charge with estafa?

Good Day, My friend's grandmother, a retired metro aide, loan P7,000.00 cash from their lady barangay kagawad on March 2012, with a promise of paying by giving her GSIS pensioner ATM and PIN to the kagawad. their agreement is from her 3,053.00 monthly pension the kagawad will withdraw P3,000.0. P1,840.00 will be her monthly payment and P1,160.00 will be returned to her as her monthly change "SUKLI". The problem the agreement does not include the duration of payment and interest rate.

Because the P 1,160.00 monthly change was not enough, what she did was get she gets cash advance of 200 or 300 from her "SUKLI" for the following month which the kagawad also deducted it Whenever she gets her "SUKLI" the following month.

It's already 1 year and 4 months and she's not yet finished paying her loan, on several occasions she had ask the kagawad to compute if she is done paying so she can get her ATM back, but the kagawad just told her that she's not yet done paying. and told her because the kagawad is charging her 20% per month and because of her cash advences her debt increases and she still have to pay 16,750 with a monthly payment of 2,700.00 from march 2013 until December 2013 without explaining how her debt balloon to that amount.

Because of the kagawad refuses to have an accounting on her debt, July 2013 she went to the bank to get a Bank Transaction Statement. She discover that the kagawad has withdrawn all the money that she can get in her ATM account, the kagawad even withdrew the " mga naipon na butal" which is not part of their agreement

1) the kagawad withdrew P1,000.00 from her remaining balance on March 2012 but payment should start from april 2012,

2) the kagawad also withdrew her midyear bonus which is not part of their agreement which the kagawad belied to her when she ask the kagawad if she received any bonus during the year 2012 and told her she got no bonus.

3) the kagawad also withdrew of an excess of 1,100.00 per month since january 2013 up to july 2013 baecuse She also got an increase on her pension from 3,053 to 5,000.00 which started from January 2013 and the kagawad also lie to her and even gave her an ATM receipt as proof that there is no increase in her pension. but she discover that they divided the withdrawals into two withdrawals and the kagawad just show her the last withdrawal receipt just to prove that there is no increase.

We have computed  the over withdrawals or withdrawals outside of their agreement it reached 11,200.00 and 53,800.00 withdrawals which is in accordance with their original agreement.

but we have also computed that she should have done paying her original loan of 7,000.00 plus interest 4 to 5 months using the max legal interest of 2.5% per month.

about her cash advances the kagawad deducts all her cash advances from her "SUKLI" the following month and she did not get any cash advance greater that her "SUKLI" so it should not be counted as another "utang"

Upon the discovery she requested the bank to deactivate her ATM to stop the kagawad from getting more money from her account. she also went to their barangay for help so that they can get a honest to goodness accounting of her debt, but the kagawad refuses and insist that she pay her the 16,750 balance or they will charge her with estafa in court.

Is it possible for them to charge her with estafa? will the case prosper in the prosecutor level?
and can the grandmother also charge them in court because the PAO advise us just to file a small claim at the MTC because small claim is faster to resolve.

Your advice will be deeply appriciated Thank You

Well. Anyone can charge anyone with estafa in court,
BUT it's an other question if they will winn or lose...   

"using the max legal interest of 2.5% per month."  
Is there such a law? (Where?)  IF so, the grandmother is supposed to winn, if the court will decide corect, which isn't sure.
Some odd if it's such law, because the COMMON "5-6" loans are much more than 2,5 % interest per month.    (Depending of paying back length and terms, but a biger such loan is over 10 % per month (paid back in around 100-120 days, and the smaller loans are normal paid back much faster, if paid every day a month the interest is around 40 % per month (because the amount is only loaned around halv of the time in average.)

It's common that loans in the Philppines have crazy high interests, I suppouse because many are in desperate need, but also depending of very few can count percent. (E g one close to MASTER exam in University BUSINESS education in Manila can count the simpler percent, but he failed recounting a longer "5-6" to year interest!  But I found one clever Filipina with no higher education, who can. So some can.)

In this case it's crazy terms even FROM START, because 1160p/month pay for a loan of 7000p is LESS than ONLY the 20%/month interest! So with such terms the grandmother will never pay back!!!     

Normaly I would suggest going to baranggay first, BUT NOT in this case, because of the loan giver work there.
I don't know the rules for small cases court in the Philippines, but an important part in my puti country in small case court is that the part, who lose DON'T RISK to have to pay lawyer for the OPPONENT, because here each side pay their own lawyer (if they bother to have any) UNDEPENDING of what the court decide.
IF the 2,5 % law, which you wrote about, don't have any exception suiting this loan giver, then the grandmother is suppoused to winn in the court. We can't be sure what courts decide, but the grandmother would have a strong case if she can be supported by that law.  You can copy the text of that law, with the important part marked, and let it follow her estafa.

Take more than agreed isn't allowed in any case, as long as the payer had followed the agreement. And if demand extra pay of some reason, the loan giver haven't TOLD it as expected.. So that's worth an estafa by itself only...

Jojo Co wrote:Good Day, My friend's grandmother, a retired metro aide, loan P7,000.00 cash from their lady barangay kagawad on March 2012, with a promise of paying by giving her GSIS pensioner ATM and PIN to the kagawad. their agreement is from her 3,053.00 monthly pension the kagawad will withdraw P3,000.0. P1,840.00 will be her monthly payment and P1,160.00 will be returned to her as her monthly change "SUKLI". The problem the agreement does not include the duration of payment and interest rate.

Because the P 1,160.00 monthly change was not enough, what she did was get she gets cash advance of 200 or 300 from her "SUKLI" for the following month which the kagawad also deducted it Whenever she gets her "SUKLI" the following month.

It's already 1 year and 4 months and she's not yet finished paying her loan, on several occasions she had ask the kagawad to compute if she is done paying so she can get her ATM back, but the kagawad just told her that she's not yet done paying. and told her because the kagawad is charging her 20% per month and because of her cash advences her debt increases and she still have to pay 16,750 with a monthly payment of 2,700.00 from march 2013 until December 2013 without explaining how her debt balloon to that amount.

Because of the kagawad refuses to have an accounting on her debt, July 2013 she went to the bank to get a Bank Transaction Statement. She discover that the kagawad has withdrawn all the money that she can get in her ATM account, the kagawad even withdrew the " mga naipon na butal" which is not part of their agreement

1) the kagawad withdrew P1,000.00 from her remaining balance on March 2012 but payment should start from april 2012,

2) the kagawad also withdrew her midyear bonus which is not part of their agreement which the kagawad belied to her when she ask the kagawad if she received any bonus during the year 2012 and told her she got no bonus.

3) the kagawad also withdrew of an excess of 1,100.00 per month since january 2013 up to july 2013 baecuse She also got an increase on her pension from 3,053 to 5,000.00 which started from January 2013 and the kagawad also lie to her and even gave her an ATM receipt as proof that there is no increase in her pension. but she discover that they divided the withdrawals into two withdrawals and the kagawad just show her the last withdrawal receipt just to prove that there is no increase.

We have computed  the over withdrawals or withdrawals outside of their agreement it reached 11,200.00 and 53,800.00 withdrawals which is in accordance with their original agreement.

but we have also computed that she should have done paying her original loan of 7,000.00 plus interest 4 to 5 months using the max legal interest of 2.5% per month.

about her cash advances the kagawad deducts all her cash advances from her "SUKLI" the following month and she did not get any cash advance greater that her "SUKLI" so it should not be counted as another "utang"

Upon the discovery she requested the bank to deactivate her ATM to stop the kagawad from getting more money from her account. she also went to their barangay for help so that they can get a honest to goodness accounting of her debt, but the kagawad refuses and insist that she pay her the 16,750 balance or they will charge her with estafa in court.

Is it possible for them to charge her with estafa? will the case prosper in the prosecutor level?
and can the grandmother also charge them in court because the PAO advise us just to file a small claim at the MTC because small claim is faster to resolve.

Your advice will be deeply appriciated Thank You

Hindi po siya makakasuhan ng estafa.
Tama po ang PAO, kung ang kagustuhan nyo po ay makuha ang ang mga naibayad na sobra, sa ni-loan mas mabilis po na paraan ang pag-file ng small money claim.at ito na rin po ang nasasaad sa ating batas ngayon, na kung ang halaga na involve ay 200,000 pababa mas praktikal po na kaparaanan na mag file ng small money claim.

Kung ayaw pong makipag usap ng maayos ang inyong kagawad at tingin nyo po ay hindi kayo mabibigyan ng tulong ng iba pang kagawad at ng inyong baranggay Chairman, maaari po kayong humingi ng tulong sa Barangay Bureau.

interdiction wrote:Kung ayaw pong makipag usap ng maayos ang inyong kagawad at tingin nyo po ay hindi kayo mabibigyan ng tulong ng iba pang kagawad at ng inyong baranggay Chairman, maaari po kayong humingi ng tulong sa Barangay Bureau.

But the loan giver work in the baranggay office...

Or is it a Baranggay Bureau CHECKING the baranggays?

Lunkan wrote:

interdiction wrote:Kung ayaw pong makipag usap ng maayos ang inyong kagawad at tingin nyo po ay hindi kayo mabibigyan ng tulong ng iba pang kagawad at ng inyong baranggay Chairman, maaari po kayong humingi ng tulong sa Barangay Bureau.

But the loan giver work in  the baranggay office...

Or is it a Baranggay Bureau CHECKING the baranggays?

gulo mo dude Lunkan. pwede kayong huningi ng tulong sa baranggay bureau dahil sila humahawak sa mga kasong administrabo na ang may kinalaman ay ang mga pasaway na miyembro ng ating baranggay.

betan.mikki wrote:gulo mo dude Lunkan. pwede kayong huningi ng tulong sa baranggay bureau dahil sila humahawak sa mga kasong administrabo na ang may kinalaman ay ang mga pasaway na miyembro ng ating baranggay.

Yes, but in this case the loan giver work in the baranggay office. Not fun for TS if she is close buddy to the baranggay "court" deciders...
That's why I talked about perhaps better go to small cases court.