Co maker problem

Good day.
I would like to ask for legal advice regarding my husband's case.When we're not yet married (2003),my husband had a friend that asked him to sign his loan application to a lending company.At first my husband refused because he was afraid that he might be involve incase his friend couldn't pay.But his friend just said that it was just a proof that he was working in the same company and it was just an application and not yet granted.He was not knowledgeble that time about this thing because he was still young and it was his first work,so he signed it.His friend said they will interview him but it did not happen.
After a month,his friend told him that he received his loan already...He tempted my husband to lend money from this lending company but my husband did not because he didn't like it...After a 2 and 3 years the collector on that company went on our house and asked about this guy because he failed to pay his obligation,he closes the ATM account and they couldn't collect his payment. The collector asked us to find him,so my husband asked our fellow co workers about him. We told the collector about the information we got.The last time the collector went to our place,he said that he didnt find this guy,so my husband was worried. He asked the collector if they will force him to pay? The collector said they can't but they will submit his name to any credit company and mark as black listed,he also said that my husband can't go abroad because they will inform the DFA.In years after that,we did not heard about it and collector never went to our place anymore,until last may 30,2015 my husband received a notice informing that his friend loaned amount as of april reaches almost 94k from the balance of 10k because of the 5% monthly interest.We are very worried because we are just a production operator who earn less and have so much to pay for the needs of our family.My questions are : Is my husband is legally called co maker even if he is not present upon the approval and releasing of the said loan and didn't have an interview as what his friend said ?Can this company has right to hold my husband incase he applies abroad?Do we have right to refuse if they will ask us to pay for it ? We called the lending company and asked for a copy of the lending agreement where my husband signed it, if we can have a copy or atleast check and see what's in the agreement but the lending company said they can't let us have a copy nor see it because it is confidential, can we force or do we have the right to have a copy or see the agreement since my husband was part of it? When my husband get his retirement pay,can this lending company get his retirement pay without his approval and knowledge? We even asked the company if we can just pay for the principal amount but they said no. Last day I met the wife of this guy and she gave me the address where her husband is,and she said he had a work.What shall we do?

Please help me to clear this things?Thank you for the time and more power.
God bless you.

Respectfully,

Cherlita Olitres

Pasensya na if may mali sa Grammar ko, I have a hard time speaking tagalog kasi.

if we can have a copy or atleast check and see what's in the agreement but the lending company said they can't let us have a copy nor see it because it is confidential, can we force or do we have the right to have a copy or see the agreement since my husband was part of it?

this is gagohan,,,
Your husband is being held accountable, then he got all the rights to see the details of what he will pay.

We called yesterday and they (A-1 LENDING CORPORATION IN CEBU) told us that the only way we can see the contract if We have the money with us to pay them,but we cannot have a copy of it. So if we don't have the money,they will not let us see it. We told them we are willing to pay for it as long as we can see the contract and if they do their job to look after the debtor.

We also gave them the address of the guy but they told us that we should do it and go the address that we gave to them because it is far(from cebu to manila), is it not enough that we already gave them the address where he live and his adress where he work?

ay naku,
wag kayo paloloko..
kung ayaw nila puntahan, eh di bahala cla,,
binigay nyo naman na address, eh di cla maningil,
wag nyo byaran..
wag kayo patakot,,

dear maam cherlita,

You need to know if your husband is really a co-maker or a guarantor or a surety. and to be able to know that, you have to ask a copy of the contract. it is your right being a co-maker/guarantor/ surety. there are lending companies which refer to co-maker as guarantor, and some lending companies refer to it as a surety. Thus a need of a copy of the document/loan agreement.


There is a big difference on being a co-maker/surety and on the other hand being a co-maker/guarantor.

a surety is under a direct and primary obligation to the creditor to answer the liabilities of the principal debtor in case the latter fails to fulfill it. As a solidary debtor, the surety is equally bound with the principal debtor to pay the debt eventhough he did not benefit from it. "The essence of the obligation of the surety is to pay the creditor without qualification if the principal debtor does not pay". (Lirag Textile MIlls, Inc. vs. Social Security System).

a guarantor, on the other hand, is only an insurer of the solvency of the debtor. Ibig sabihan, one guarantees only the capability of the person (debtor) to pay his debt to the creditor.

now, what is the importance of these?

if your husband is indeed a surety, he has the obligation to pay his officemate's debt to the creditor and a demand to pay by the creditor is not necessary before bringing a suit against your husband since a surety is not entitled to notice of the principal's default of payment, being equally liable to pay. ( if being able to pay and willing to pay, you can later on ask for reimbursement from the officemate of your husband.)

unlike if your husband is a guarantor, the creditor needs to exhaust all available remedies before it can demand from him payment of the obligation.(Art. 2058 of the Civil Code provides: "A guarantor cannot be compelled to pay the creditor unless the latter has exhausted all the property of the debtor, and has resorted to all the legal remedies against the debtor."). your giving the creditor of the address of the officemate's address is of significance in this matter since this is a defense on your part not to pay the officemate's obligation - that the creditor has not resorted to all the legal remedies which includes a suit against the officemate. kailangan muna nila singilin sya bago kayo. lahat muna ng ari-arian nya should answer for his liabilities. only then when his assets are all exhausted can they demand from you. Art. 2060-2061 of the Civil Code provides : "in order that the guarantor may make use of the benefit of excussion, he must set it up Against the creditor upon the latter's demand for payment from him, and point out to the creditor available property of the debtor within Philippine territory, sufficient to cover the amount of the debt. The guarantor having fulfilled all the conditions required in the preceding article, the creditor who is negligent in exhausting the property pointed out shall suffer the loss, to the extent of said property, for the insolvency of the debtor resulting from such negligence."

Maam Cherlita, that is what the law says, and being only a law student, may i ask you to please see a lawyer and pray for God's guidance for your peace of mind.

Thank you and God bless

Shix Today

What a big help. Thanks for the information, para akong nabunutan ng malaking tinik.

Thanks..Gobless you too