Commercial
Remedial
Ponente: REGALADO, J.
Decision Date: 1989-06-29
GR Number: G.R. No. 72714
Digest Team
4 months ago
Avg. Rating:
Summary:
This case involves a dispute over a car purchased on installment from Violago Motor Sales Corporation. The petitioner executed a promissory note and a chattel mortgage as security for the payment of the car. The promissory note included an interest rate of 12% per annum and the total amount payable was P22,246.00 more than the cash price of the car. The promissory note and chattel mortgage were later assigned to Filinvest Credit Corporation and then to Servicewide Specialists, Inc. The latter filed a case for replevin and damages against the petitioner for non-payment of installments. The trial court ruled in favor of Servicewide Specialists, Inc., ordering the petitioner to deliver the car or pay the outstanding balance plus interest and attorney's fees. The petitioner appealed to the Intermediate Appellate Court, which affirmed the trial court's decision.
Doctrine:
The court held that the usury law is not applicable to a conditional sale based on an installment plan, as the increase in price serves to cover the expenses of such transactions and encourage cash sales. The court also found that the purchase discount added to the cash price of the car was within the allowable rate prescribed by the Financing Company Act. Additionally, the court ruled that there was no violation of the Truth in Lending Act, as the disclosure statement provided to the petitioner contained all the required information.
Facts:
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Issues Ratio:
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Dispositive:
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Other Notes:
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