The first advisory, issued in October last year, cited provisions of RA 9474, or the Lending Company Regulation Act, which makes it illegal to act as a lending company or investor unless registered with the Commission as a lending company.
Is lending illegal in the Philippines?
Answer: The Supreme Court already ruled that imposition of usurious interest rates such as “5-6 money lending” is illegal. … The debt due is to be considered without the stipulation of the excessive interest. A legal interest of 12% per annum will be added in place of the excessive interest formerly imposed.
Who regulates lending companies in the Philippines?
9474, otherwise known as the Lending Company Regulation Act of 2007, together with its Implementing Rules and Regulations, is the primary legislation governing Lending Companies in the Philippines.
How do I report illegal money lending in the Philippines?
You may send an accomplished Complaint Form at email@example.com, and attach a scanned copy of your valid government-issued I.D. and supporting evidence/documents such as disclosure statement, amortization schedule, receipts, promissory notes, and other relevant documents in connection with your loan transaction that …
What interest rate is illegal?
The interest rate the lender sets depends on two things — what the lender thinks you will pay and what the law allows them to charge you. The law says that lenders cannot charge more than 16 percent interest rate on loans.
How long can you legally be chased for a debt in the Philippines?
According to the above law, you have 10 years within which to collect the loan from your neighbor, to be reckoned with, from the time he defaulted.
Is lending a good business in the Philippines?
By planning carefully, setting up a lending business in the Philippines can be very profitable. Setting up this business model may not be as easy as it seems since you need to invest quite a lot of money/time.
What is the maximum interest rate allowed by law in Philippines?
The present rate of legal interest under the Usury Law is therefore 6% per annum.
Can you go to jail for not paying a loan in the Philippines?
Will I go to jail if I have an unpaid loan? As explicitly stated in the 1987 Philippine Constitution under Section 20 of Article III, no one shall be imprisoned due to debt, so you don’t need to worry about debt collectors threatening you that they will send out the police to arrest you tomorrow.
How do I report an illegal business in the Philippines?
If you know of any business that is behaving in an anti-competitive manner, report to PCC by calling 87719 722, or email us at firstname.lastname@example.org.
Can you go to jail for not paying home credit?
You cannot go to jail for not paying a loan. No creditor of consumer debt — including credit cards, medical debt, a payday loan, mortgage or student loans — can force you to be arrested, jailed or put in any kind of court-ordered community service. If you get sued for an unpaid debt, you’ll end up in civil court.