- Statute
- Philippine Civil Code
- Article
- Art. 1413
- Topic
- Void and Inexistent Contracts
- Status
- In force, as amended
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE II CONTRACTS
- Chapter
- CHAPTER 9 Void and Inexistent Contracts
- Year
- 1949
- Cited by
- Multiple Supreme Court decisions
The provision
Interest paid in excess of the interest allowed by the usury laws may be recovered by the debtor, with interest thereon from the date of the payment.
Intellegal Wiki · In plain terms
Under this provision a borrower who paid interest beyond what the usury laws allowed may recover the excess, with interest from the date of payment. In practice, though, the Philippines suspended usury ceilings in 1982 (Central Bank Circular 905), so there is no longer a fixed statutory rate cap; today courts instead strike down interest they find unconscionable, and a borrower can recover amounts collected under such a void rate.
An editorially maintained plain-language explanation of this provision — not legal advice.
Note on current application: this provision remains in force. The interest-rate ceilings of the Usury Law were suspended by Central Bank Circular No. 905 (1982), so there is no fixed statutory ceiling; Philippine courts may still reduce interest rates found to be unconscionable or iniquitous.
Cases applying this article
- Isabela Colleges v. The Heirs of Nieves Tolentino-Rivera G.R. No. 132677
- Esperanza Baello v. Ceferino Villanueva G.R. No. 30873
- Agripina Gallion v. Narciso L. Gayares G.R. No. 29503
- The Heirs of Lucio Acosta v. Spouses Aniceto Macatangay G.R. No. 206208
- Cueno v. Bautista G.R. No. 246445
Related provisions in this Chapter
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Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.