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R.spsalbos V Embisan
R.spsalbos V Embisan
ISSUE
RULING
No, it is unconscionable.
even if there was such an agreement that interest will be compounded, We agree with
the petitioners that the 5% monthly rate, be it simple or compounded, written or verbal,
is void for being too exorbitant, thus running afoul of Article 1306 of the New Civil Code,
which provides: