Yes.Even in the suspension of the Usury Law and the elimination of interest ceilings, the parties are usually unrestrained to specify the interest rates to be enforced on financial obligations. As a general rule, the interest rate acknowledged by the creditor and the debtor are valid upon them. This rule, however, is not without exception.
Currently, the Supreme Court once again dealt with the validity of interest acknowledged by the parties, declaring 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 your case, 100 % interest per annum is considered unconscionable and illegal.
One Response
attorney meron po akong document from Credit Bureau na ang utang ko lang sa isang bank is 9,000.00 and tumawag ako sa bank to settle the amount pero according to collections officer 49k na daw ang utang ko, if 6% per annum ang charge hindi po dapat aabot un ng 49K. Ayaw po nila akong payagang i-settle ung amount at makakuha ng certificate of complete payment unless i-settle ko daw ng buo ung utang ko 🙁