Bank loans and terribly high interest rates

good afternoon po.

i would just like to request assistance on how i can request the bank from where i availed of a personal loan to lower the interest/penalty charges.

the loan initially has 33.60% per annum interest rate for a 2 year term resulting to a principal amount of Php 518,368.

of the principal amount, Php 3440 was deducted for Non-financial charges and Php 130,368 which is the finance charges for the entire term of the loan.

the net proceeds i received from amounted to Php 384,560.

on the remaining 14th month i defaulted as a result of losing my job (and wiping out my savings during the time i was unemployed).

i requested the bank for a re-structuring of my personal loan and the bank sent a schedule for which the balance (with the imputed interest and for which interest was initially deducted from the proceeds) was further subjected to a 40% monthly penalty/interest rate.

with the re-structured schedule i was asked to pay Php 12,786.04 for 36 months, effectively the amount is equivalent to Php459,654.26 or 152% of my outstanding loan.

thank you very much po.

write them back that what they have proposed is unreasonable and come up with your own proposal in terms of amount and schedule.

i did po many times...today i received another advice that what i have proposed is not acceptable to them.

what i believed to be collection agency will not accept any other term and the longer we negotiate, the higher the charges goes.

i already informed them that maybe it is best that i kill myself since after voluntarily informing them of my sudden financial chaos, they stil decline my plea and recommended payment schemes.

leane, what documents have you signed? did you issue checks that bounced?

in collection, sometimes the threat of a case is more coercive than an actual one being filed because of the fear of the unknown. this is why they are being unreasonable.

i know this is easy for me to say because i am a lawyer and it's not my own self on the line, but in my experience, once a debtor acquires legal representation or when they realize they actually have to file a case, the creditor will eventually soften up to accept a reasonable settlement.

good afternoon po..

i signed a loan agreement and issued PDCs to cover the loan.

after ondoy and after losing my job, i asked for re-structuring po. the reply came rather late and the terms are not doable for me since (1) i used up all my savings in the months that i was unemployed and (2)my current job doesn't pay me as much as i used to get.

i was requesting po the bank to atleast reduce the collection fee (they are charging me Php100k+) for collection fee.

i am not sure po how they calculated the colllection fee or where in the contract it states the manner or rate of collection-related add-on.

everytime i reply to them, it is as if a machine replies to me because i get the same schedule of payment over and over.

i even replied once that since i had no choice because the downpayment they require is something i cannot pay ASAP...that it may be good to just kill myself.

kaya lng kawawa naman parents ko...i take care of them and wanted to give them a comfortable life sana.

thank you po for all your help....currently po i cannot afford a lawyer.
i will try to ask help from PAO but i have to schedule it po.
i am on a no-work, no-pay arrangement and every pay counts.

thank you po and God bless you for helping individuals like us who screw up their financials but are not running away from it.

the PDCs will make you liable for bp 22. it will be likely that they will file a criminal case to coerce you to pay. the good news is that the supreme court has issued a circular that in bp22 cases, if a fine will suffice then that is the punishment imposed. but it is still discretionary upon the court what punishment to impose.

you will still have opportunities to settle with the bank during preliminary investigation and mediation. don't lose hope. it will take money to get them to back off. if you can source this somehow, then you have leverage to enter into an agreement with the bank. good luck.

thank you po.

i will have to look for help in sourcing the fund.

i already owe loan sharks who promised bodily harm will come my way if i don't pay on time....

i've sold all my personal assets and i owe my relatives and my friends (some of them refuses to talk to me)....

sir, i know this is asking too much, but would you know of anyone looking for someone to do part-time work (on weekends)? i can type/file/organize things.

i am a business process analyst...i can help implement accounting systems/records mgt systems.

how much would it cost me po if i get private legal assistance? i was looking at the criteria at the PAO website and i might not be elligible as an "indigent". by legal assistance yun pong pde po sana mag guide sa akin when i compose requests to the banks for re-structuring.

as i've mentioned po, prior to my defaulting (bouncing checks) payments, i called the customer hotline and was informed that i cannot request for re-structuring until/unless i defaulted in my payment. thus, i waited for me to default before i requested (in writing/email) for a re-structuring.

i just need assistance lang po sana since i cannot hire a lawyer right now.

thank you po.

salamat po.

keep communicating with the bank. the moment you stop, that is when they may file the case.

try the philippines craig's list. i've seen part time jobs there.

the cost of legal representation depends on which lawyer you retain.

the pao will accept a certificate of indigency from the barangay, but they may not necessarily be the best lawyers for this kind of case unless a complaint is already filed.

just signing in...just to say am still here....

i am having a very hard time getting a lawyer to work with me...usually they ask for an acceptance fee which is ironic...the very reason i need a lawyer is because i cannot pay my loans and yet i have to get money for the acceptance fee....

i heard about pro-bono work but having a hard time searching for it.

have a good night everyone.

sorry to hear that, but we lawyers do need to earn. keep shopping around for a lawyer. there ought to be one within your budget.

you can inquire at the integrated bar of the philippines and legal aid office of a law schools.

thank you attorney....so far i still have hope...anyways if i go to jail po for bounced checks..is there a way for me to estimate my jail time? applicable din po ba ang double jeopardy sa atin? say if i have 2 loans both supported by PDCs....do i have to declare to the court that i have 2 loans?

thanks po. have a good weekend.

i am getting depressed talking to the bank po...it seems that the bank rep would really want me to be qualified for a collection agency arrangement...meron po ba silang cut sa commission ng agency?
i keep calling the bank's number tapos palaging wla or busy. i have to attend din naman po my day job else baka ako ma-terminate.

un ibang collection agents they send demand letters saying i refused to pay or ignore their calls when i keep a log of calls i made to the bank (though palaging busy ang line) and the emails i sent. does this qualify me na "maliciously ignoring" demand for payments po? despite the attempts to call and the emails?

try communicating with letters using registered mail. you can send them both to the collection agency and the bank. again, offer to make as large a downpayment as you can and installments for the rest.

my mga unpaid loans po ako with pdc issued,pwede na po bang maging rason un para d ako makakuha ng nbi clearance?di ko narereceive ung mga sulat ng bank kasi nakaaddress sya sa dati kong pinagtatrabahuhan...ano po bang pwede kong gawin?

charice, i recommend you just get your nbi clearance. if they send you to quality control, then something may be wrong. although i've never heard of anyone being arrested there, you can send an authorized representative to be safe. good luck.