616 Phil. 60
VELASCO JR., J.:
Statement Date | Previous Balance | Purchases (Payments) | Penalty Interest | Finance Charges | Balance Due |
10/27/2002 | 94,843.70 | | 559.72 | 3,061.99 | 98,456.41 |
11/27/2002 | 98,465.41 | (15,000) | 0 | 2,885.61 | 86,351.02 |
12/31/2002 | 86,351.02 | 30,308.80 | 259.05 | 2,806.41 | 119,752.28 |
1/27/2003 | 119,752.28 | | 618.23 | 3,891.07 | 124,234.58 |
2/27/2003 | 124,234.58 | | 990.93 | 4,037.62 | 129,263.13 |
3/27/2003 | 129,263.13 | (18,000.00) | 298.72 | 3,616.05 | 115,177.90 |
4/27/2003 | 115,177.90 | | 644.26 | 3,743.28 | 119,565.44 |
5/27/2003 | 119,565.44 | (10,000.00) | 402.95 | 3,571.71 | 113,540.10 |
6/29/2003 | 113,540.10 | 8,362.50 (7,000.00) | 323.57 | 3,607.32 | 118,833.49 |
7/27/2003 | 118,833.49 | | 608.07 | 3,862.09 | 123,375.65 |
8/27/2003 | 123,375.65 | | 1,050.20 | 4,009.71 | 128,435.56 |
9/28/2003 | 128,435.56 | | 1,435.51 | 4,174.16 | 134,045.23 |
10/28/2003 | | | | | |
11/28/2003 | | | | | |
12/28/2003 | | | | | |
1/27/2004 | 141,518.34 | | 8,491.10 | 4,599.34 | 154,608.78 |
8. PAYMENT OF CHARGES - BCC shall furnish the Cardholder a monthly Statement of Account (SOA) and the Cardholder agrees that all charges made through the use of the CARD shall be paid by the Cardholder as stated in the SOA on or before the last day for payment, which is twenty (20) days from the date of the said SOA, and such payment due date may be changed to an earlier date if the Cardholder's account is considered overdue and/or with balances in excess of the approved credit limit, or to such other date as may be deemed proper by the CARD issuer with notice to the Cardholder on the same monthly SOA. If the last day fall on a Saturday, Sunday or a holiday, the last day for the payment automatically becomes the last working day prior to said payment date. However, notwithstanding the absence or lack of proof of service of the SOA of the Cardholder, the latter shall pay any and all charges made through the use of the CARD within thirty (30) days from date or dates thereof. Failure of the Cardholder to pay the charges made through the CARD within the payment period as stated in the SOA or within thirty (30) days from actual date or dates of purchase whichever occur earlier, shall render him in default without the necessity of demand from BCC, which the Cardholder expressly waives. The charges or balance thereof remaining unpaid after the payment due date indicated on the monthly Statement of Accounts shall bear interest at the rate of 3% per month for BPI Express Credit, BPI Gold Mastercard and an additional penalty fee equivalent to another 3% of the amount due for every month or a fraction of a month's delay. PROVIDED that if there occurs any change on the prevailing market rates, BCC shall have the option to adjust the rate of interest and/or penalty fee due on the outstanding obligation with prior notice to the cardholder. The Cardholder hereby authorizes BCC to correspondingly increase the rate of such interest [in] the event of changes in the prevailing market rates, and to charge additional service fees as may be deemed necessary in order to maintain its service to the Cardholder. A CARD with outstanding balance unpaid after thirty (30) days from original billing statement date shall automatically be suspended, and those with accounts unpaid after ninety (90) days from said original billing/statement date shall automatically be cancel (sic), without prejudice to BCC's right to suspend or cancel any card anytime and for whatever reason. In case of default in his obligation as provided herein, Cardholder shall surrender his/her card to BCC and in addition to the interest and penalty charges aforementioned , pay the following liquidated damages and/or fees (a) a collection fee of 25% of the amount due if the account is referred to a collection agency or attorney; (b) service fee for every dishonored check issued by the cardholder in payment of his account without prejudice, however, to BCC's right of considering Cardholder's account, and (c) a final fee equivalent to 25% of the unpaid balance, exclusive of litigation expenses and judicial cost, if the payment of the account is enforced though court action. Venue of all civil suits to enforce this Agreement or any other suit directly or indirectly arising from the relationship between the parties as established herein, whether arising from crimes, negligence or breach thereof, shall be in the process of courts of the City of Makati or in other courts at the option of BCC.[4] (Emphasis supplied.)
WHEREFORE, finding merit in the allegations of the complaint supported by documentary evidence, judgment is hereby rendered in favor of the plaintiff, Bank of the Philippine Islands and against defendant-spouses Ileana DR Macalinao and Danilo SJ Macalinao by ordering the latter to pay the former jointly and severally the following:
- The amount of PESOS: ONE HUNDRED FORTY ONE THOUSAND FIVE HUNDRED EIGHTEEN AND 34/100 (P141,518.34) plus interest and penalty charges of 2% per month from January 05, 2004 until fully paid;
- P10,000.00 as and by way of attorney's fees; and
- Cost of suit.
SO ORDERED.[11]
In any event, the sum of P141,518.34 adjudged by the trial court appeared to be the result of a recomputation at the reduced rate of 2% per month. Note that the total amount sought by the plaintiff-appellee was P154,608.75 exclusive of finance charge of 3.25% per month and late payment charge of 6% per month.WHEREFORE, the appealed decision is hereby affirmed in toto.
No pronouncement as to costs.
SO ORDERED.[12]
WHEREFORE, the appealed decision is AFFIRMED but MODIFIED with respect to the total amount due and interest rate. Accordingly, petitioners are jointly and severally ordered to pay respondent Bank of the Philippine Islands the following:
- The amount of One Hundred Twenty Six Thousand Seven Hundred Six Pesos and Seventy Centavos plus interest and penalty charges of 3% per month from January 5, 2004 until fully paid;
- P10,000.00 as and by way of attorney's fees; and
- Cost of Suit.
SO ORDERED.[13]
I.
THE REDUCTION OF INTEREST RATE, FROM 9.25% TO 2%, SHOULD BE UPHELD SINCE THE STIPULATED RATE OF INTEREST WAS UNCONSCIONABLE AND INIQUITOUS, AND THUS ILLEGAL.II.
THE COURT OF APPEALS ARBITRARILY MODIFIED THE REDUCED RATE OF INTEREST FROM 2% TO 3%, CONTRARY TO THE TENOR OF ITS OWN DECISION.III.
THE COURT A QUO, INSTEAD OF PROCEEDING WITH A RECOMPUTATION, SHOULD HAVE DISMISSED THE CASE FOR FAILURE OF RESPONDENT BPI TO PROVE THE CORRECT AMOUNT OF PETITIONER'S OBLIGATION, OR IN THE ALTERNATIVE, REMANDED THE CASE TO THE LOWER COURT FOR RESPONDENT BPI TO PRESENT PROOF OF THE CORRECT AMOUNT THEREOF.
The stipulated interest rates of 7% and 5% per month imposed on respondents' loans must be equitably reduced to 1% per month or 12% per annum. We need not unsettle the principle we had affirmed in a plethora of cases that stipulated interest rates of 3% per month and higher are excessive, iniquitous, unconscionable and exorbitant. Such stipulations are void for being contrary to morals, if not against the law. While C.B. Circular No. 905-82, which took effect on January 1, 1983, effectively removed the ceiling on interest rates for both secured and unsecured loans, regardless of maturity, nothing in the said circular could possibly be read as granting carte blanche authority to lenders to raise interest rates to levels which would either enslave their borrowers or lead to a hemorrhaging of their assets. (Emphasis supplied.)
Art. 1229. The judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. Even if there has been no performance, the penalty may also be reduced by the courts if it is iniquitous or unconscionable.
There Is No Basis for the Dismissal of the Case,
Much Less a Remand of the Same for Further Reception of Evidence
Sec. 6.Effect of failure to answer. -- Should the defendant fail to answer the complaint within the period above provided, the court, motu proprio, or on motion of the plaintiff, shall render judgment as may be warranted by the facts alleged in the complaint and limited to what is prayed for therein: Provided, however, that the court may in its discretion reduce the amount of damages and attorney's fees claimed for being excessive or otherwise unconscionable. This is without prejudice to the applicability of Section 3(c), Rule 10 of the Rules of Court, if there are two or more defendants. (As amended by the 1997 Rules of Civil Procedure; emphasis supplied.)
Statement Date | Previous Balance | Purchases (Payments) | Balance | Interest (1%) | Penalty Charge (1%) | Total Amount Due for the Month |
10/27/2002 | 94,843.70 | | 94,843.70 | 948.44 | 948.44 | 96,740.58 |
11/27/2002 | 94,843.70 | (15,000) | 79,843.70 | 798.44 | 798.44 | 81,440.58 |
12/31/2002 | 79,843.70 | 30,308.80 | 110,152.50 | 1,101.53 | 1,101.53 | 112,355.56 |
1/27/2003 | 110,152.50 | | 110,152.50 | 1,101.53 | 1,101.53 | 112,355.56 |
2/27/2003 | 110,152.50 | | 110,152.50 | 1,101.53 | 1,101.53 | 112,355.56 |
3/27/2003 | 110,152.50 | (18,000.00) | 92,152.50 | 921.53 | 921.53 | 93,995.56 |
4/27/2003 | 92,152.50 | | 92,152.50 | 921.53 | 921.53 | 93,995.56 |
5/27/2003 | 92,152.50 | (10,000.00) | 82,152.50 | 821.53 | 821.53 | 83,795.56 |
6/29/2003 | 82,152.50 | 8,362.50 (7,000.00) | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
7/27/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
8/27/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
9/28/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
10/28/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
11/28/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
12/28/2003 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
1/27/2004 | 83,515.00 | | 83,515.00 | 835.15 | 835.15 | 85,185.30 |
TOTAL | | | 83,515.00 | 14,397.26 | 14,397.26 | 112,309.52 |