Teachers held “hostage” by a lending company

Admin Number of posts : 680 Registration date : 2007-05-29

Teachers held “hostage” by a lending company
By ED SESTOSO

BAYAWAN CITY , Negros Oriental- While most of the lending companies operating in the country are running after those clients of theirs who have overdue payments or who has not settled their financial obligations, several teachers here faces a unique problem and predicament.
Several teachers of this progressive city had sought the intervention of Capitol officials because they seem to be held “hostage by a lending company identified as Manila Teachers Mutual Aid System who has a branch situated in Dumaguete City .
Bayawan City Councilor Victoriano Alabastro took the cudgels for the teachers.
In a letter he sent to Capitol lawyer Erwin Vergara, said that the complaining teachers would like to fully pay their financial and loan obligations to the said lending company , but it refuses to accept the cash payment.
It was learned that the teachers had been long time members of the mutual aid system, but because the interest payments of their loan is much higher than the others, they decided to fully pay the amount in order to free them from further incurring financial obligations to the company.
The company refuses to accept the cash payment because based on the loan contract they had executed with the teachers that the payment is by salary deduction and that it is payable on or before due date.
But the complainants argued that it however does not prohibit any other manner of payment that includes cash payment and not solely on salary deductions.
Councilor Alabastro also pointed out that the lending company is not solely collecting through salary deduction as other clients aside from the teachers are allowed to pay in cash.
The complaining teachers are Arnold Octaviano, Lilibeth Feril, Necyl Galicia and Ma. Luisa Muyco.
The complainants also claimed that they represent the bulk of the teachers who were then members of the MTMAS.
Councilor Alabastro also said that it would appear that the lending agency aims to hold to their “membership” or “hostage” them so that they could not transfer to other companies who might offer lower interest rates to loans.
Atty. Vergara said that holding the teachers as “hostage” by way of not accepting cash payments for full payment of their obligations thus severing their ties with that company essentiallly curtails the freedom of association guaranteed under the Constitution.
The Capitol lawyer said that he would summon officials of MTMAS to explain why they had not accepted the cash payments of teachers.
The teachers said that when they approached a certain Juan Tamayo, the company’s officer in charge in their Dumaguete branch, they were told that they cannot pre pay their loan even if they want and offered to pay the balance.
The complainants claimed that the scheme and the policy were never explained to their prior to their incurring of their respective loans.
“As supposedly members of the association, we feel that the policies should have been explained to us before implementation” stressed the complainants.