Some say that lawyers are excellent in logic, but poor in numbers. Well, if you find some semblance of truth in that, here`s my advice. For the application of legal principles, consult a lawyer. But to calculate the numbers, take an accountant or an accountant-lawyer or a law firm with accountants. This means that if the parties do not indicate in writing the interest payable on any of the aforementioned transactions or due to a court decision regarding a related monetary claim, the interest charged is 6% each year. The Supreme Court has already ruled that it is illegal to charge usurious interest such as „5-6 loans of money”. The legality or illegality of the contractual clause concluded by the parties is subject to a judicial decision. In November 2020, the Monetary Committee issued a circular requiring that interest rates on credit card usage do not exceed 2% per month or 24% in a year to be in effect for 6 months and revised thereafter. This confirms once again that the Monetary Board is exercising its powers under the usury law.
Violations of this circular should therefore be subject to criminal sanctions under the Usury Act, which provides for fines and/or imprisonment. Article 7 of Law No. 9474 on Amounts and Costs of Loans” provides that „a lending company may grant loans in an amount and at reasonable interest rates and costs agreed between the lending company and the debtor: provided that the agreement complies with the provisions of Law No. 3765, also known as the „Law on Truth in Loans” and Law No. 3765, Also known as the „Law on Truth in Loans” and Law No. 3765. 7394, also known as the Consumer Law of the Philippines; Provided, moreover, that the Monetary Board, in consultation with the SEC and industry, may fix interest rates justified by existing economic and social conditions. The rate cut follows the country`s low inflation rate, which fell to a five-year low of 3.2 percent last year. In addition, the capital market is so liquid that banks are flooded with money waiting to be borrowed by interested parties. Although intended for general commercial use, the introduction of the new statutory interest rate will depend primarily on our courts and administrative offices that process and enforce monetary claims and arbitral awards. In fact, there is no hard and fast rule for determining the relevance of interest rates.
Interest rates of 21%, 23% and 24% per annum have been maintained in some cases. 2. Can we appeal to the courts if the amount paid by my mother and the interest rate is ruthlessly verified? If the parties have agreed on the amount of interest on the loan, this Agreement is binding on them. In the absence of such an agreement, the interest due is 6% per annum. 1. If the obligation is breached and consists in the payment of a sum of money, i.e. in a loan or in the omission of money, property, credits or judgments, interest fixed in writing by the parties shall be due, provided that it is not excessive and unscrupulous, which, in the absence of a fixed calculation date, is free from default, i.e. extrajudicial or judicial remedies under Article 1169 of the Civil Code, UNTIL FULL PAYMENT without compound interest, unless the parties expressly determine the interest compounded by law or regulation. Interest on the principal amount due on the court`s claim will SEPARATELY earn statutory interest at the rate prescribed by Bangko Sentral ng Pilipinas, from the time of the court`s request UNTIL FULL PAYMENT. The Monetary Board has reduced such statutory interest or default interest from 12% to 6% per annum for the loan or renunciation of money, property or credit, effective July 1, 2013, in accordance with Circular PNB 799 and the interest rate allowed in judgments, unless there is an express contract for this interest rate. In the same circular, the statutory interest rate of 6% is also applied uniformly to bonds other than loans.
On the other hand, there are many cases where the Supreme Court has lowered fixed interest rates quite a bit; For example, 18% to 10% per year. The Supreme Court also lifted the fixed interest rate of 5.5% per month (or 66% per year) because it is „excessive, unjust, unscrupulous and exorbitant, and therefore contrary to morality („contra bonos mores”), if not to the law.” The same is true for cases involving 36% per year, 6% per month (or 72% per year) and 10% and 8% per month. In these cases, the Supreme Court imposed the statutory interest rate of 12%. Gud day, I hope you can give me legal advice, I have a loan of P1500.00 and the interest is 20% every 10 days this loan goes until now, as I remember that launch last November. 2011, I first pay P1680.00, of which P600.00 for 20 days interest which is 40%, P80.00 is for interest interest, I gave this payment to my co-manufacturer, but before giving her the money, I signed her the written agreement that she received my payment as co-manufacturer. Unbeknownst to me, my co-maker did not transfer my payment. She says that instead Shell pays for it and has responsibility for the money, the person where we lend the money does not agree She says that I am still responsible for paying the money in question, but on the contract we signed it says that if I did not pay my loan, My co-maker is the one who will pay for it. And until now, she was paying the interest, but because of the great interest that she could not afford to pay continuously and now she is suing us, can you give us legal advice, did she have the right to sue us? What do we do? Just to be clear, „legal interest” doesn`t mean that just over 12% is „illegal.” It simply means that on a loan or omission of money, written interest should be due, and in the absence of that, the interest rate is 12% per year.