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cassie · 10 · 2492

cassie

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on: May 03, 2010, 04:42 AM
My bestfriend was planning to resign from work for 7 years due to credit card problems since she does not earn that much already due to various loans in the company. She was almost 5 years using credit card and because of unavoidable circumstances she can't pay her bills anymore. For 3 years she pays only the minimum amount due but her debt is still the same and worst getting bigger. It almost totaled 500t  for several banks but the total interest earned by the bank was almost the same if totaled from the beginning. This includes the finance charge/cash adv fee/late payment fee/annual fee etc. She was asking for arrangements/amnesty but they offered her still 2% per month for the entire term. Her house was mortgaged for 25 years in Pag-ibig, can the bank get it? It would really be a big help to her specially now if she can have some suggestions on what to do because it already affects her health (depressed and stressed). Tnx & God bless!


jvcajayon

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Reply #1 on: May 03, 2010, 11:21 AM
I don't think the credit card companies will be able to touch her house.
If that house is still mortgaged to Pag-ibig, then Pag-ibig still "owns" the house until she pays the mortgage off. Only pag-ibig has the right to that house.
And since it's not a collateral to her credit card loans, the credit card companies have no claims against that house.

When it comes to bargaining with the credit card companies, she has to bargain hard. These companies will eventually deal with her since these are non-secured loans and they wouldn't be able to get anything back from her should she decide to stop paying, especially that most of her balance consists of interest and penalties as you have mentioned. Better to get a little something back than none at all..

Better ask a lawyer though.

« Last Edit: Mar 20, 2012, 10:59 PM by jvcajayon »


ManilaBoy40

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Reply #2 on: May 03, 2010, 12:14 PM

I don't think the credit card companies will be able to touch her house.
If that house is still mortgaged to Pag-ibig, then Pag-ibig still "owns" the house until she pays the mortgage off. Only pag-ibig has the right to that house.
And since it's not a collateral to her credit cards loans, the credit cards companies has no business with that house.

When it comes to bargaining with the credit card companies, she has to bargain hard. These companies will eventually deal with her since these are non-collateral loans and they wouldn't be able to get anything back from her should she decide to stop paying, especially that most of her balance consists of interest and penalties as you have mentioned. Better to get a little something back than none at all..

Better ask a lawyer though.





    "Correct me if I am wrong, but I believed credit card companies can go after your deposit accounts if you default after they get a court judgement..."  :)


mjwinxsky

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Reply #3 on: May 03, 2010, 10:51 PM
Hi cassie, this blog might help your friend http://failuretopaycreditcard.blogspot.com/.


jvcajayon

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Reply #4 on: May 03, 2010, 11:29 PM


nidaime

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Reply #5 on: May 04, 2010, 12:18 AM
Salaries can't be garnished by the court here in the Philippines. We have a law the protects us from such especially if the salary is the only means for a person to live.

  "Correct me if I am wrong, but I believed credit card companies can go after your deposit accounts if you default after they get a court judgment. "  

The key word is IF. Since the TS mentioned that the CC loans are spread to different credit cards, it would be rare for a bank to file an actual court case to collect small cc loans since they have to spend a big amount for lawyers. And most of the time, the court would side with the ordinary citizen and NOT THE BANK because the court believes that the interest on credit cards is very excessive. And even IF the court sides with the bank, it is up to the ordinary citizen on what he/she can pay to the bank whether one time big time or installment  :watchuthink:

TS, go to the link that mjwinxsky posted. It is very useful for people struggling with their credit cards and how to deal with the banks and/or collection agencies.


jvcajayon

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Reply #6 on: May 04, 2010, 01:09 AM
Salaries can't be garnished by the court here in the Philippines. We have a law the protects us from such especially if the salary is the only means for a person to live.

"Correct me if I am wrong, but I believed credit card companies can go after your deposit accounts if you default after they get a court judgment. "

The key word is IF. Since the TS mentioned that the CC loans are spread to different credit cards, it would be rare for a bank to file an actual court case to collect small cc loans since they have to spend a big amount for lawyers. And most of the time, the court would side with the ordinary citizen and NOT THE BANK because the court believes that the interest on credit cards is very excessive. And even IF the court sides with the bank, it is up to the ordinary citizen on what he/she can pay to the bank whether one time big time or installment :watchuthink:

TS, go to the link that mjwinxsky posted. It is very useful for people struggling with their credit cards and how to deal with the banks and/or collection agencies.


That's good that there is a law that protects the employee's salaries from garnishment. But may not be the case for other assets. And as you said, banks rarely sue the delinquent CC holder. Banks normally sell the bad loans or hire collection agencies to do the job for them. And this is where it can get ugly sometimes. If there are no laws or guidelines on how collection agencies do their jobs, most will resort to harassment to get the CC holders to pay up.




« Last Edit: Mar 20, 2012, 11:01 PM by jvcajayon »


fashionista

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Reply #7 on: May 04, 2010, 02:17 AM
lawyers will likely advise you to just wait for the bank to file a case, because most likely your friend will get better rates, minsan tatanggalin pa ang principal and depende kung gaano na kadami ang naibayad nya.


naomibatac

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Reply #8 on: Feb 29, 2012, 09:06 PM
The banks that your friend owned credit card debts will opt to collect by all means, and further default may result the account to be transferred to the collecting agencies. These agencies on the other hand, may file case in court.
The remedy would be settlement of debt in any way possible. Your friend may sell some of his personal properties; ask loans from friends and relatives. The purpose is to pay the debt in order not to incur more financial charges and other charges that will aggravate the credit card debt. 


vgal0579

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Reply #9 on: Feb 29, 2012, 10:20 PM
the bank cannot get your friend's house... the CC company need to file a case first then if the amount of the house is higher than his debt, then the CC company need to have "sukli"...  :hihi:

i have co-EE with credit card under BPI... BPI was our bank for salary... it is true though that BPI will hold the balance until the CC balance is paid in full... better talk to the admin department and make necessary adjustment, like cash payroll or depositing to other account...  :watchuthink:

i have another suggestion for you to read: diskartepilipinas... it will somehow help your friend a lot...  :D


 


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