Legal Question in Civil Rights Law in Philippines

8% interest rates

is it legal to collect 8%interest rates per month of loan with colateral.Is it also legal to a creditor to let the debtor sign option to repurchase and deed of sale of the property upon release of the proceed of the loan?we have loan 100t the net is already 89,000 t. on the 3rd mnth we paid 60,000. the ff mnth we loaned again 50t net is 30t plus on the 3rd mnth we paid 100t lately we paid another 100t. fter 7 months we loande another 50t the net is 40t plus,last mnth i paid another 100t but still the creditor wants us to pay aditional 295t so he can reles the title. is the creditor legally follow the law in lending act?the creditor only issue us grade 2 paper as receipt of our payments no official receipt fr bir we keeps on asking of the receipt but he doesnt giv us.please help us what are we going to do thanks and god bless.


Asked on 10/22/07, 11:01 am

1 Answer from Attorneys
Reynaldo Destura Destura & Associates Law Offices

Re: 8% interest rates

if you signed the loan agreement with 8% interest then you are bound to pay the same. The Deed of Sale with Option to Purchase is an equitable mortgage thefore illegal. YOu have to sue to have the same deed nullified.

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Answered on 10/31/07, 1:46 am


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