Del Castillo, J.
Civil Law
In LBP v. Oñate, the Court noted that Bangko Sentral ng Pilipinas Circular No. 799, Series of 2013, which took effect on July 1, 2013, embodied Monetary Board Resolution No. 796 dated May 16, 2013 providing that in the absence of express stipulation between the parties, the rate of interest in loan or forbearance of any money, goods or credits and the rate allowed in judgments shall be 6% per annum. Hence, the Court held in this case that 12% annual interest for both the debited amount and undocumented withdrawals shall apply only up to June 30, 2013. Thereafter, or starting July 1, 2013, it ruled that the applicable rate of interest shall be 6% per annum compounded annually until fully paid. (GR No. 192371, January 15, 2014)
In Spouses Eduardo and Lydia Silos v. PNB, the Court ruled that any modification of stipulated interest must be mutually agreed upon; otherwise, it has no binding effect. Moreover, the Court said it cannot consider a stipulation granting a party the option to prepay the loan if said party is not agreeable to the arbitrary interest rates imposed. (GR No. 181045, July 2, 2014)
Source: JUDICIARY ANNUAL REPORT 2014-2015
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