Loan Interest Law

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Posted

Oh they have SKIPED the Usury Law?  Or have they added a new one later than this was written 2006? (Recently I have been told it's max 2 % per month.)

 

Anyway  that's not my point, it's they have a law, which tell much lower interest rates than what's common.

The most common loan have around 500 % interest recounted to per annum.

http://jlp-law.com/blog/excessive-unconscionable-interest-rate/

 

Quoted PART of text: 

 

With the suspension of the Usury Law and the removal of interest ceilings, the parties are generally free to stipulate the interest rates to be imposed on monetary obligations. As a rule, the interest rate agreed by the creditor and the debtor is binding upon them. This rule, however, is not absolute.

In a recent case, the SC again dealt with the validity of interest agreed by the parties, stating that:

Stipulated interest rates are illegal if they are unconscionable and the Court is allowed to temper interest rates when necessary. In exercising this vested power to determine what is iniquitous and unconscionable, the Court must consider the circumstances of each case. What may be iniquitous and unconscionable in one case, may be just in another.

In that case, the SC reduced the interest rate from 18% to 12% per annum

But SC have said ok to cases with 6, 8 and 10 % per month.

BUT that's FAAAAR from 500 % per year...

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Posted

Every country has laws on the books that they have no intention of enforcing.  Laws without recent legal precedents and means of enforcement are useless.  Example:  Here is a link to some dumb Swedish laws:

 

http://www.dumblaws.com/laws/international/sweden

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Posted

Interest rates is a very interesting topic in this country. Was discussed a while back and I just shake my head in amazement how some of these hard working market vendors can survive on what is extorted from them. It's beyond my understanding how normal people can possible sleep at night when ripping off others so blatantly.

We have friends selling in Canlaon and talking to them is gut wrenching, they have no comprehension of rates, just pay and pay. It's criminal what goes on and sadly nobody cares and nothing is ever done.

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Posted (edited)

Interest rates is a very interesting topic in this country. Was discussed a while back and I just shake my head in amazement how some of these hard working market vendors can survive on what is extorted from them. It's beyond my understanding how normal people can possible sleep at night when ripping off others so blatantly.

We have friends selling in Canlaon and talking to them is gut wrenching, they have no comprehension of rates, just pay and pay. It's criminal what goes on and sadly nobody cares and nothing is ever done.

 

"Saint Peter, don't you call me cause I can't go. I owe my soul to the company store." is from a song of long ago. The market here is the same with Bombays making their daily rounds. City hall, the police station, DPWH, and others have lenders too that take their cut before you get paid.

Edited by jpbago
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Posted
Interest rates is a very interesting topic in this country. Was discussed a while back and I just shake my head in amazement how some of these hard working market vendors can survive on what is extorted from them. It's beyond my understanding how normal people can possible sleep at night when ripping off others so blatantly.
Well. I don't count loan sharks to "normal people"  :bash: 

 

It's different if it's at a level when it's good for BOTH sides. 

E g at common "harvest sharing" level, the financiere get good pay if the harvest is good,

BUT the farmer DON'T risk to stay in dept if the harvest become lower, and by the ASSISTANCE from the financiere, the farmer get BIGER harvests than without the financing, because the financing make they can add enough fertilizer, use better seeds, treat plant illnesses better...  

We have friends selling in Canlaon and talking to them is gut wrenching, they have no comprehension of rates, just pay and pay. It's criminal what goes on and sadly nobody cares and nothing is ever done.
Well. Rather many of the pest loans sharks have been killed off   :mocking:
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