Evelina R. Abad v. Bank of the Philippine Islands

Summary

This credit card debt collection case involved Evelina R. Abad's unpaid obligation of P434,128.08 to Bank of the Philippine Islands. The Supreme Court affirmed the Court of Appeals' decision finding Abad liable based on her judicial admission of indebtedness. The courts reduced the original unconscionable interest rates to 24% per annum total (12% each for finance charge and late payment charge) from the final demand date, and imposed 6% per annum interest on these charges from judicial demand pursuant to Article 2212 of the Civil Code. The case demonstrates judicial intervention in unconscionable interest rate provisions while upholding contractual obligations when judicially admitted. The decision reinforces the principle that factual findings of lower courts, when supported by evidence and affirmed on appeal, deserve finality from the Supreme Court.