A double whack
Tiburon
7 Dec 2011
Playing with fire
Re: Money Lending
Usury Law – Act 2655, as amended by Presidential Decree 116, is no longer in effect. Any amount charged beyond the legal percentage per annum is considered usurious, however, pursuant to Central Bank Circular 905 adapted on December 22, 1982 – the Supreme Court declared the Usury Law is legally non-existent, and interest can be charged as lender and borrower may agree upon.
The loan shark . . .
This leech, this predator can charge a hundred fold above the acceptable norm. Here comes Mr. Gonzalo’s favored friend, the not-so inconspicuous Indian/Paki expatriate . . . Ashok Vasandani. He’s an octopus in this notorious business of squeezing every ounce of energy from employees public or private, small business owners and the street and market vendors where it hits hard the most, but according to them, which makes Ashok Vasandani look like a knight in shining armor – he provides the necessary capital and spending money, at a moments notice, where they couldn’t get from a bank.
The naiveté is so profound among these loan victims when asked, that they just shrugged it off, the thorough dominance of these Indian/Paki loan pirates.
The vigorish . . .
The ongoing rate in Pangasinan is 20% per week which means, if you borrowed one (P100) hundred pesos on a Monday you have to pay one (P120) hundred twenty pesos on the coming Friday, and that’s 80% charge for the whole month . . . a beyond exorbitant making-you-crazy 960% per annum. On top of this, some Indian loan givers will hustle the intended victim, with an offer he/she couldn’t refuse. The loan man will sell the borrower array of goods as a guarantee – from rusted pots and pans to plastic cups – the loan will be given as long as borrower buys. A double whack on the head for the poor sucker.
The life saver . . .
A God-fearing-loving person Ashok Vasandani, Mr. Gonzalo? You must be off your rocker!
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