Edmerito Ang Gobonseng v. Unibancard Corporation

Summary

This case involves a credit card debt collection dispute between cardholders Edmerito and Eduardo Ang Gobonseng and Unibancard Corporation. The Gobonsengs defaulted on their credit card payments totaling P179,638.74, which had accumulated beyond their P10,000 monthly limit. Unicard sued for collection, seeking principal, interest, penalties, and attorney's fees per their agreement. The trial court ruled in favor of Unicard, awarding the full contractual rates. The Court of Appeals modified the decision, reducing the penalties from 5% to 1% monthly and attorney's fees from 25% to 10%, finding the original terms exorbitant. The Supreme Court affirmed the CA decision, holding that contractual stipulations on interest and penalties are enforceable when not unconscionable, and that both interest and penalties can be collected simultaneously under Article 1226 of the Civil Code. The case establishes important precedent on the enforceability of credit card contract terms and judicial power to modify excessive penalty clauses.