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Assigned Case - Bank of Luzon v. Reyes
Assigned Case - Bank of Luzon v. Reyes
BANK OF LUZON
Plaintiff,
JOSE REYES
Customer No. XXXXXXXXXXXXX
Defendant
X-------------------------------X
COMPLAINT
3. Plaintiff BL issues credit cards using a card operating system that is both
information security and quality management compliant as certified by the
British Standard Information Security Management System and
International Standard Organization for Quality Management System.
8. Through the use of his aforesaid credit card, defendant had incurred credit
charges, with Total Outstanding Balance (TOB) of P263,817.11 per
Statement of Account (SOA) dated September 6, 2009, hereto attached
as Annex “D”.
10. The plaintiff made several verbal and written demands on the defendant
for the payment of his credit card, by sending him demand letters and also
the pertinent statements of account showing the amount owed and the
date required payment is due from him. Notwithstanding the defendant’s
receipt of these demands, he unjustifiably refused and failed, as he
unjustifiably continues to refuse and fail to pay his plainly just, valid,
outstanding and overdue obligation to the plaintiff. Photocopies of the
demand letters sent by personal delivery are hereto attached as Annexes
“E” and “F”.
11. In view of the defendant’s willful, unjustified and continued failure and/or
refusal to pay his outstanding, overdue and unpaid obligation, the plaintiff
was constrained to engage the services of the undersigned counsel to
protect its interests for an agreed attorney’s fees equivalent to 25% of the
total amount due, exclusive of appearance fee, for every court hearing,
which expenses should be reimbursed by the defendant to plaintiff.
PRAYER
FE LAUREL
Counsel for the Plaintiff
5 Zamora St. Pasay City
IBP No. XXXXX-Pasay City-1/12/09
PTR No. XXXXXX-Pasay City-1/12/09
MCLE Compliance No. II-XXXXXX-08/26/08
Roll No. 33453
I, MEL VELEZ, of legal age, Filipino with office and postal address at 5TH floor BL
Card Center, 8753 Paseo de Roxas, Makati City, after having been sworn in
accordance with law, hereby depose and say that:
MEL VELEZ
Affiant
BANK OF LUZON
Plaintiff,
JOSE REYES
Customer No. xxxxxxxxxx
Defendant,
x---------------------------------------------------x
AFFIDAVIT
4. As part of the terms and conditions for the issuance and use or
availment of the BL card issued to the defendant, the latter expressly agreed that
she will keep track of her total obligations with the plaintiff so as not to exceed
the approved credit limit. In addition, he also expressly agreed to pay the
plaintiff, without necessity of demand, on the date indicated in the monthly
statement of account containing a summary of all purchase/charges made
through the use of said credit card. He further expressly agreed that the said
charges or balance thereof, remaining unpaid after the due date indicated in the
statement of account shall bear a finance charge at the rate of 3.5% based on
the average balance and a late payment charge at the rate of 6% for every
month or a fraction of a month’s delay.
The Ledger of Account dated September 06, 2009 with total amount due in the
sum of P263,817.11 marked as Exhibit “D”.
The Ledger/Statement of Account dated July 06, 2008 with total amount due in
the sum of P100,150.88 marked as Exhibit “D-1”.
The Ledger/Statement of Account dated August 08, 2008 with total amount due
in the sum of P104, 902.87 marked as Exhibit “D-2”.
The Ledger/ Statement of Account dated September 07, 2008 with total amount
due in the sum of P100,518.27 marked as Exhibit “D-3”.
The Ledger/ Statement of Account dated October 05, 2008 with total amount due
in the sum of P103,438.53 marked as Exhibit “D-4”.
The Ledger/ Statement of Account dated November 05, 2008 with total amount
due in the sum of P109,413.11 marked as Exhibit “D-5”.
The Ledger/ Statement of Account dated December 07, 2008 with total amount
due in the sum of P116,131.47 marked as Exhibit “D-6”.
The Ledger/ Statement of Account dated January 05, 2009 with total amount due
in the sum of P121,543.86 marked as Exhibit “D-7”.
The Ledger/ Statement of Account dated February 05, 2009 with total amount
due in the sum of P156,607.37 marked as Exhibit “D-8”.
The Ledger/ Statement of Account dated March 06, 2009 with total amount due
in the sum of P169,259.02 marked as Exhibit “D-9”.
The Ledger/ Statement of Account dated April 06, 2009 with total amount due in
the sum of P182,954.60 marked as Exhibit “D-10”.
The Ledger/ Statement of Account dated May 05, 2009 with total amount due in
the sum of P195,661.68 marked as Exhibit “D-11”.
The Ledger/ Statement of Account dated June 07, 2009 with total amount due in
the sum of P211,588.04 marked as Exhibit “D-12”.
The Ledger/ Statement of Account dated July 05, 2009 with total amount due in
the sum of P227,776.30 marked as Exhibit “D-13”.
The Ledger/ Statement of Account dated August 05, 2009 with total amount due
in the sum of P244,804.24 marked as Exhibit “D-14”.
6. Because the defendant defaulted on his obligation for the use of his
credit card, demands were made for his to failure to pay his obligation, a copy of
demand letter dated August 17, 2009 addressed to defendant Jose Reyes and
received by guard Ruel and August 26, 2009 addressed to defendant Jose
Reyes and received by Defendant himself are hereto attached and made an
integral part hereof as Exhibit “E”,”E-1,”E-2” and “E-3” respectively.
MARIBEL CRUZ
Affiant
BANK OF LUZON
Plaintiff,
JOSE REYES
Customer No. XXXXXXXXXXXXXXXXX
Defendant
X-------------------------------X
JUDICIAL AFFIDAVIT
Q1: Mr. Witness, you mentioned that you are Liaison staff at FE
LAUREL & ASSOCIATES; as such, what your duties and
responsibilities?
A: Yes, Ma’am.
Q3: What information do you have in your records regarding said Jose
Reyes?
A: Yes Ma’am, that’s the receiving copy of the letter which was
delivered to Jose Reyes.
Q5: In the receiving copy a, name J Reyes and signature are indicated
herein. Do you know whose name and signature this belongs to?
A: Yes Ma’am,
MIKE SANTOS
Affiant
ATTESTATION
Neither I nor any other person then present or assisting him coached him
regarding the latter’s answers.
ATTY. FE LAUREL
BANK OF LUZON
Plaintiff,
JOSE REYES
Defendant
X-------------------------------X
ANSWER
4. The Terms and Conditions for the use and availment of BL Credit Card
was never fully explained by the complainant to the defendant considering
that the provisions are difficult to read and understand.
5. the defendant denies having received and demand letter from the
complainant and as such, he should not be considered to have defaulted
in payment.
7. Defendant has been making payments on his obligations with the plaintiff.
However, considering the financial difficulties by the defendant at present,
he was expecting a restructuring of his unpaid balances since he had
already approached the plaintiff to ask for assistance to settle his
obligations.
8. Defendant does not have the slightest intention of evading whatsoever his
obligation to the plaintiff. It is a matter of simple accounting of records
between his and the plaintiff and a restructuring of the loan if possible.
Hence, the instant case, should the same push through, may be coursed
through mediation proceedings for the purpose.
PRAYER
ANTHONY CRUZ
Counsel for the Defendant/s
Roll of Attorney’s No. 57359
IBP No. 810801/01-09 10/RSM
MCLE Compliance number (N/A)
Compliance period up to April 2010 per
MCLE Governing Board No. 1, s. 2008
VERIFICATION
I, JOSE REYES, after being sworn in accordance with law, depose and
say: that I am the defendant in the above-entitled case; that I have caused the
above Answer to be prepared and I have read and know the contents thereof and
the allegation therein are true of my personal knowledge
SUBSCRIBED and sworn to before me in Makati City, this 28th day of May
2010 by JOSE REYES with HDMF Transaction Card No. 1040-0021-5864 issued
at Makati City on October 11, 2008.
Registry Receipt
Copy Furnished:
FE LAUREL
Counsel for the Plaintiff
5 Zamora St., Pasay City
SERVICE EXPLANATION
For lack of messenger, a copy of this Answer was sent by registered mail with
return card to Atty. FE LAUREL
TONY PEREZ
REPUBLIC OF THE PHILIPPINES
NATIONAL CAPITAL REGION
METROPOLITAN TRIAL COURT
BRANCH XX, MAKATI CITY
BANK OF LUZON,
Plaintiff,
- versus -
Civil Case No. ____________
JOSE REYES,
Defendant.
x-------------------------------------------------x
JUDICIAL AFFIDAVIT
Witness:
JOSE REYES, of legal age, Filipino, and resident of Apple Village, Dasmarinas Cavite.
Examining Lawyer:
MARIA R. DELA CRUZ
6th floor Makati City Hall Building,
Poblacion, Makati City
Place of Examination:
Public Attorney’s Office, Makati District
6th floor Makati City Hall Building,
Poblacion, Makati City
Formal Offer: Your Honor, we are offering the testimony of Defendant Jose
Reyes who will be testifying to refute the material allegations in the complaint of
Bank of Luzon (BL) against him. Defendant, in the course of his testimony, will
identify documents pertinent to this case and will also testify on other allied
matters.
5. Q: When were you issued a credit card by the BL, if you could still recall?
A: Sometime in the late 90’s, Ma’am.
6. Q: When you were issued a credit card by BL, how much was your credit
limit, if you could still recall?
A: I can no longer remember the exact amount, but I am quite sure that
my credit limit increased from the time it was issued to me. The latest
being Ninety Thousand Pesos (P90,000).
8. Q: Now, what did you do with the BL credit card issued in your favor?
A: I used it in my purchases.
9. Q: And what did you do after you used said BL credit card issued in your
favor?
A: I religiously paid my obligation with BL on time.
10. Q: Would you recall an instance when you failed to religiously pay your
dues for having used your BL credit card in your purchases?
A: Only in 2009 when I began experiencing financial difficulty that I was
not able to pay my dues with BL. The factors that contributed thereto were
when my mother and two siblings fell ill and I had to finance their
medications. Notwithstanding the financial difficulty I experienced and
continue to experience at present, I made payment though not for the
whole amount in order to somehow reduce my obligation with BL.
11. Q: When was the last time you made payment in favor of BL?
A: Sometime in 2010. I made payments from time to time though as I
have said earlier, they are not in full as I really found it difficult to pay the
amount in full considering the financial quandary I am in, Ma’am.
12. Q: What is your proof that you made payments in favor of BL from time to
time?
A: I have here copies of bank validations which tend to show that I have
paid BL on various occasions, Ma’am
13. Q: Considering that you were not able to pay the full amount of your
outstanding obligation with BL, what happened to it?
A: I noticed that it almost doubled due to the high amount of finance
charges and late payment charges BL imposed, Ma’am.
14. Q: How much finance charges and late payment charges did they impose
Mister Witness?
A: They imposed 3.25% financial charges on my unpaid account every
month plus late payment charge of 6% of the amount due for every month
or fraction of a month’s delay.
15. Q: What was your reaction when you learned that such amount of finance
charges and late payment charges were imposed by BL on your
obligation?
A: I was shocked, Ma’am.
18. Q: But BL also claimed that the imposition of financial charges amounting
to 3.25% and late payment charge of 6% were expressly provided for in
the Terms and Conditions governing the Use and Issuance of the BL
credit card, which were printed a he back of the letter supposedly sent to
you together with the credit card, are you aware of that?
A: No, Ma’am, I am not aware of such terms and condition attached to the
card.
19. Q: Do you recall if there was anyone from BL who explained to you such
terms and conditions governing the use of BL credit card?
A: No Ma’am. I do not recall anyone from BL explaining to me said terms
and conditions governing the use of BL Credit Card.
20. Q: How about signing any document containing the terms and conditions
governing the use and issuance of the BL Credit Card, do you remember
having signed any such document?
A: No, Ma’am.
21. Q: But are you aware now of such terms and conditions governing the
use and issuance of the BL Credit Card?
A: Yes, Ma’am. I am made aware of such terms and conditions only now,
when this particular case was filed against me. To reiterate, no one from
BL explained to me the alleged terms and conditions. And even if the
same was written at the back of the letter supposedly delivered to me with
the credit card, the provisions therein are written in so fine prints and in
breathlessly long sentences perhaps for the purpose of being ignored
altogether.
22. Q: Now you said that you became aware of the terms and conditions
governing the use and issuance of the BL Credit Card only after this
particular case was filed against you, did you find any provision therein
with respect to payment charges?
A: Yes Ma’am there exists a provision concerning payment charges but I
cannot find anything therein that states an imposition of financial charges
at the rate f 3.25% per month and the imposition of late payment charge of
6% of the amount due for every month or fraction of a month’s delay.
23. Q: Now Mr. Witness, had the imposition of financial charges amounting to
3.25% and late payment charges of 6% explained to you, would you have
agreed to the same?
A: No Ma’am because the 3.25% financial charge and 6% late payment
charge is just too much and I believe it’s illegal.
25. Q: Now you’re saying that the financial charges and late penalty charges
imposed by BL is too much, how much charges the do you consider
justified?
A: A total interest of 12% per annum is justified and there must be no
compounding interest because I believe BL has no basis for its imposition.
26. Q: What can you say now with respect to the allegation made by BL to the
effect that you have an outstanding, overdue and unpaid obligation with
them in the amount of two hundred sixty-three thousand, eight hundred
seventeen pesos and eleven centavos (P263,817.11)
A: That is way too excessive Ma’am. I acknowledge that I have an
outstanding obligation to BL but not to that extent
28. Q: BL also claims that by reason of your willful, unjustified and continued
failure and/or refusal to pay your outstanding, overdue and unpaid
obligation with them, they were constrained to engage the services of a
counsel to protect their interest, and they want you to pay the attorney’s
fees that is equivalent to 25% of the total amount due plus their counsel’s
appearance fee every Court Hearing. What can you say about that?
A: I should not be made to pay the fees of their counsel, Ma’am. If BL
incurred expenses in hiring a counsel for the purpose of filing the instant
case against me, they should be made to bear the consequence thereof. I
did not ask for this case, all I wanted is a simple accounting of records
between me and BL so that the real amount of my outstanding obligation
be reflected
29. Q: Considering what you have said Mister Witness, what do you want the
Honorable Court to do with the case filed against you?
A: I hope that this case will be decided with fairness. I acknowledge that I
have an obligation with BL, I just hope that my obligation be limited to my
principal obligation coupled with a reasonable amount of interest
30. Q: Do you affirm and confirm the truthfulness and veracity of all the
statements you stated in this judicial affidavit?
A: Yes Ma’am.
JOSE REYES
Affiant
SUBSCRIBED AND SWORN TO before me this 19th day of February,2013 at the Public
Attorney’s Office in Makati City, Philippines. Affiant exhibiting to me his GSIS
Multipurpose ID No. 123-1234-1234-1
NOTARY PBLIC
ATTESTATION OF COUNSEL
I, MARIA DELA CRUZ, single, Filipino, of legal age with office address at 5 th floor, new
Makati City Hall Building, JP Rizal St. Poblacion Makati City, after having been sworn to
in accordance with law, hereby attest that:
IN WITNESS WHEEOF, I have hereunto set my hand this 12 th day of February 2013 at
Makati Cty, Philippines
SUBCRIBED AND SWORN to me this 12th day of February 2013 at Makati City,
Philippines. Affiant exhibited to me here IBP ID with Lifetime Membership NO. 12345
FAY ABRENICA
Copy Furnished:
Atty Fe Laurel