CLAIM FOR UNPAID DUES FROM 5-6 CREDIT

I would to seek for free legal assistance regarding my case. Please have the patience to go through my story.


August 15, 2013
My friend Pedro is in need of capital money to continue his failed business. He provided me all the details how it will work and he needs P20,000 to restart. As a friend I was eager to help. The only option that time was to borrow money from another friend Juan who do 5-6 wherein the interest will be 20% of the premium and payable in just 40 days. Pedro agreed to the terms so I talked to Juan about the P20k without telling him that Pedro will be the one using it. Me being a close friend to Juan, did not need to sign anything or provide any collateral. Once I got the cash, so I lend the P20K to Pedro, without any papers to sign nor collateral because I trust him.

Now, 40 days have passed and Pedro only gave me P4,000 pesos, enough to pay the 20% interest only without the capital. Pedro said that he is still workin on the way to return the capital, as of that time it is that only amount he can give. Then a few days later, when it was raining hard, Pedro managed to flew with his family from Manila to Cavite leaving on a few things in his rented apartment. He did not inform me about his plans, he just called me and said that his business did not work. He told me that they will find other means to pay and I have his words.

From that point, I was obliged to pay for the 20% interest every 40 days, still counting on his words that Pedro will show up and pay me back.

Come Febuary, Pedro's wife was able to get a job abroad and send the second and last paymet of P4000 as a payment for the 20% interest. Come March, they then said that they don't have enough income to pay me and giving excuses already. Also asking if they can just return the Principal P20K without the interest.

I then told Pedro that I've been shouldering the interest since the time he left and settling for principal will not work. So starting March, I was devasted to know that I will be forced to pay the Principal amount and my shouldering of the 20% interests for a couple of times will not be reimbursed.

From March to September, I was not able to pay Juan the inherited principal and interests. Juan told me that he will to freeze the interest and just sum it up plus the principal which resulted to an amount P36,000. That's 4 (x 40 days) of 20% interest plus the principal of P20K. Adding the other shoulder payments I made of P12,000 (from Sept 30, 2013 to January 28, 2014), it was a TOTAL of P48,000. That huge amount costed me to honor my word to Juan.

Around 3 months ago, I was able to talked to Pedro on phone and we both agreed for a P40,000 settlement. However, untill now I have not received any amount.

Up to this date, Pedro has been hiding in an unknown address in Silang, Cavite while his wife is still working abroad in Saudi Arabia. They have blocked us in facebook, not answering our calls, not replying on text messages.

Please, help me for all legal remedies that I can follow if there is any. I have faults on the process and don't want to dwell on it. I hope that you can help me find means to get my money back. I hope that this also served as a lesson for others.

Sincerely,
rskingjames

"borrow money from another friend Juan who do 5-6 wherein the interest will be 20% of the premium and payable in just 40 days." Ment to pay back whole sum after 40 days, or step by step, being full paid after 40 days? If it's the first that's 180 % interest per year, and if it's the second that's 360 % interest per year (=That's NOT get 5, pay 6 how interests are counted normaly, it's get 5 pay 23. In your case IF it had ended in one year, get 20 000, pay 92 000.) That's much more than I count as a FRIEND loan. But friendly of him that he freezed it, so you don't need to pay 4000 for each 40 days.
"My friend Pedro is in need of capital money to continue his failed business. "
Why did you lend him money to a FAILED business??? Big risk that will be an expensive lesson for you... He was obviously not a REAL friend, because he hide and block, and leave you with what's suppoused to be HIS problem

Because you have no loan document, you have big problem proving it, if he deny it, which he seem to do
Do you have any witness, who saw when you gave the loan to Pedro?
Can you prove Pedro/wife has paid anything to you? It's a SMALL chance it can be counted as useful evidience.

Do you believe Pedro have anything valuable to take IF you would winn in court? Not worth much to winn a case, if they can't be forced to pay. Do they have kids? If so they have harder to pay.

Dear Lunkan,

First, thank you for reading through my lenghty story. Me and my wife really appreciate your prompt response. I will be answering your response below.

====================================
"borrow money from another friend Juan who do 5-6 wherein the interest will be 20% of the premium and payable in just 40 days." Ment to pay back whole sum after 40 days, or step by step, being full paid after 40 days? If it's the first that's 180 % interest per year, and if it's the second that's 360 % interest per year (=That's NOT get 5, pay 6 how interests are counted normaly, it's get 5 pay 23. In your case IF it had ended in one year, get 20 000, pay 92 000.) That's much more than I count as a FRIEND loan. But friendly of him that he freezed it, so you don't need to pay 4000 for each 40 days.
"My friend Pedro is in need of capital money to continue his failed business. "
Why did you lend him money to a FAILED business??? Big risk that will be an expensive lesson for you... He was obviously not a REAL friend, because he hide and block, and leave you with what's suppoused to be HIS problem Mad

It is the first one, meant to pay back P20K+4K=24K at the end of 40 days. Since the capital was not provided, we initially gave 4K for the interest only. Then the new 40 days will start to count again. So every 40 days, the 20% of the capital will be refreshed but will not be on compound interest. I know now, that he is not a good friend. I learned my lesson on a costly price.
====================================

====================================
Because you have no loan document, you have big problem proving it, if he deny it, which he seem to do Mad
Do you have any witness, who saw when you gave the loan to Pedro?
Can you prove Pedro/wife has paid anything to you? It's a SMALL chance it can be counted as useful evidience.

I have facebook conversation as proof, old text messages and a BPI Silang Cavite bank record, wherein Pedro deposited their last 4K payment.
The facebook conversation has the amount values involved, the interests and how much they should pay and the reason why they are willing for a 40K settlement.
=====================================

=====================================
Do you believe Pedro have anything valuable to take IF you would winn in court? Not worth much to winn a case, if they can't be forced to pay. Do they have kids? If so they have harder to pay.

Pedro and his wife is not legally wed. They're just bounded as live in. Pedro is single, while his wife has 3 children. At the moment, Pedro is not taking care of the children as they were sent to the province for relatives to take care. Pedro is "said" to be driving a tricycle for a living in Silang Cavite. I also heard from one of their relative, that his wife is boasting that she is paying a house and lot already in Cavite where Pedro is currently living.
====================================

Will be possible to use the Facebook conversation, text messages, BPI bank record of deposit to my account against him? If yes, please tell me what is the first step, like should I do an affidavit and have it notarized and what branch or goverment agency I should go. I am really lost right now as my wife is really pissed off of what have happened.

WE really appreciate your response. We hope that you can help us through in our case. Thank you in advanced for your help.

Sincerely,

rskingjames

I hope other practitioners will post their comment.

Thank you in advanced for any legal solution.

OK. 180 % interest per year then ( = Borrow 20, pay back 56 if pay back all during a year.)

It's possible your proofs can be enough. Problem though, I doubt it can be solved by the barangay captain, because Pedro is elsewhere, but you can ask.

Oh. They are not married. Then I suppouse it don't help you that she pay a house because whole belong to her, not him. Except if they have been stupid and put his name on the documents too

I don't know* if the Philippines have SIMPLIFIED demanding of depts as we have in my home country. If so the dept can be demanded WITHOUT need o sue in court or at captain. Then the case go to court ONLY if the other side answer they DON'T AGREE they have that dept.

*I don't know so I hope someone else can tell you how to demand depts (OTHER when have collateral). If no one answer, you can check if someone else have asked about that part in this forum. I suppouse so Or perhaps barangay captain office can inform you.