Case Digest (G.R. No. 248898)
Facts:
Bryan L. Uysipuo v. RCBC Bankard Services Corporation, G.R. No. 248898, September 07, 2020, the Supreme Court Second Division, Perlas-Bernabe, J., writing for the Court.Petitioner Bryan L. Uysipuo was issued a credit card by Bankard, Inc. in 2009 under a written agreement that imposed monthly interest of 3.5% and late payment charges of 7%. Petitioner used the card and initially paid some balances but later defaulted. By May 9, 2010 his statement reflected a balance of P1,757,024.53 inclusive of interests and late charges. A demand letter dated November 26, 2010 was sent and received, but petitioner did not pay. Bankard filed suit in the Regional Trial Court (RTC) on December 15, 2010 seeking P1,757,024.53 plus interest, penalties, attorney’s fees, and costs; Bankard was later substituted by respondent RCBC Bankard Services Corporation.
At the RTC (Pasig City, Branch 268) the trial court, in a Decision dated March 24, 2017, ruled for RCBC and ordered payment of P1,757,024.53; interest at 12% p.a. from extrajudicial demand until June 30, 2013 and 6% thereafter; interest on accrued interest at similar stepped rates from the time of filing; attorney’s fees of P50,000; and costs. Petitioner appealed to the Court of Appeals (CA).
The CA, in a Decision dated April 11, 2019 (CA-G.R. CV No. 109701), affirmed with modification: it found the contractual monthly rates (3.5% interest and 7% late charge) unconscionable, reduced them to legal rates, and held the principal obligation to be P787,500.00 (the balance due in August 2009), ordering payment of P787,500.00 plus 6% p.a. legal interest from extrajudicial demand (November 26, 2010), 6% p.a. late payment interest from August 2009, attorney’s fees of P50,...(Subscriber-Only)
Issues:
- May the Supreme Court make its own factual findings when the factual findings of the lower courts are conflicting?
- Did the Court of Appeals err in fixing the principal obligation at P787,500.00 and in tempering the contractual interest and penalty rates — what are the correct principal amount and the proper monetary and compensato...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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