Back

Philippine National Bank (PNB) vs. Manalo et. al

PHILIPPPINE NATIONAL BANK, PETITIONER, VS. SPOUSES ENRIQUE MANALO & ROSALINDA JACINTO, ARNOLD J. MANALO, ARNEL J. MANALO, AND ARMA J. MANALO, RESPONDENTS.

G.R. No. 174433, | 2014-02-24

 
 
FIRST DIVISION
 
D E C I S I O N

BERSAMIN, J.:

Although banks are free to determine the rate of interest they could impose on their borrowers, they can do so only reasonably, not arbitrarily. They may not take advantage of the ordinary borrowers’ lack of familiarity with banking procedures and jargon. Hence, any stipulation on interest unilaterally imposed and increased by them shall be struck down as violative of the principle of mutuality of contracts.

Antecedents

Respondent Spouses Enrique Manalo and Rosalinda Jacinto (Spouses Manalo) applied for an All-Purpose Credit Facility in the amount of P1,000,000.00 with...