Help! Re: Posible NBI Case on Bad Checks and Promissory Notes

A business friend is planning to sue me because of back checks from a loan I made to him 2 yrs ago...(2 pdc's/ 2 years ago issued) and undelivered promissory notes (lapsed payment dates). He called me to tell that the NBI is gathering evidence against me and that they will file a case against me tomorrow.

However, I have also paid 75% of the total loan from him of P150,000, in separate dates within the 2 years. Also, I told him initially and in the promissory note that the monthly interest is 20% per month. What he is after is about the big interest and the remaining 20% of the principal left.

My questions are:
1. Can he actually let the NBI file against me if they have the promissory notes and bounced checks with them?
2. If they do, will I get an NBI mark?
3. If so, will they file this in court or thru the barangay?
4. Can the NBI just issue a warrant of arrest on me re this?

Please, i need your urgent advice on the matter!

Salamat po...

My questions are:
1. Can he actually let the NBI file against me if they have the promissory notes and bounced checks with them?
2. If they do, will I get an NBI mark?
3. If so, will they file this in court or thru the barangay?
4. Can the NBI just issue a warrant of arrest on me re this?

ANSWERS:
1. The NBI will file a case not because they were prodded by any person. They will file a case based on their findings/evaluation of documents. If they find that you have no crime, they wont file a case against you.
2. In case they file a case against you, you will surely have a mark.
3. When their findings show that a criminal case should be filed, they will file it with the prosecutors office.
4. The NBI has no power to issue warrants of arrest. Only the court can do that and only when a case is filed before it and further, the judge should have personally found probable cause for the issuance of a warrant.

Re the interest: a 240% annual interest is not only unconscionable, it is revolting to fair dealings. The court can reduce the interest but you have to have a lawyer to assist you.

I hope i am of help. God bless.

Thank you very much, Richard. I was waiting for any response the whole day as I'm stuck at home nervously awaiting texts or calls.

For the high monthly interest, it was I who suggested it since I told him that I will only loan for 2 months. Also, what prompted me to raise the interest was coz I was desperate for cash and I had a big contract which I thought would be paid put within 2 months but did not prosper. Until now,the project has been derailed due to a legal matter, thus delaying po my payment. I'd been trying to raise the amount but have been successful. But overall, I've paid already around 75% of the loaned principal...By the way, is there a law concerning having paid already 75% of your loaned principal? Thanks again!

Your lawyer can still try to negotiate withn the other party so that the 20% interest will apply for the first two months only then the interest for the succeeding months will be charged with legal interest. If negotiation fails, a case for Accounting (possibly with reformation of interest but not so viable on this area) with the prayer that 20% interest will apply for the first two months only then leagl interest for the succeeding months.

in all cases i'm handling, it would be best that both parties amicably settle the matter. litigation in the philippines could be taxing (physically and financially).

in an NBI case, the parties would still be given an opportunity to thresh out the differences between the opposing parties and i suggest you take advantage of the same.