Hiraeth: Homesickness for a Place that Doesn’t Exist.

The idea of “home” has always baffled me.

Maybe it’s because I’ve never truly felt at home anywhere.

There are places where I’ve felt comfortable, but they were never technically my “home.” Even as I get older and moved to different towns and cities, I’ve never lived in an apartment or house that I’ve felt completely settled in.

There’s always this nagging restlessness, this feeling that ‘no, this isn’t home either.’

So, where is home? Some can argue that home is inside—that it’s with you all the time. I’d like to believe that and deep down, I think I really do.

But I can’t shake this feeling. All my life, I’ve sought refuge everywhere outside of myself—my grandmother’s house, friend’s houses, the homes of relatives. I’ve always felt like a visitor because, well, I was. I’ve never felt like I completely belonged anywhere, especially the place I was supposed to belong.

Over the past 15 years, I think I’ve moved just as many times. I’ve noticed a pattern: I never stay in one place longer than two years, tops. I usually bounce within a year to year and a half. I just can’t seem to get settled, to put down roots.

This is both disturbing and enlightening to me.

It disturbs me because it makes me wonder what I’m running from. Or better yet, what I’m searching for. I like that I’ve lived in so many places and met so many people. No matter where I go, I always seem to run into someone I know. I kind of like that.

I’ve come to embrace this restless energy inside of me, because it’s propelled me to keep moving, exploring, reaching. It keeps my curiosity alive. Sometimes, I feel like it keeps me young.

And sometimes it wears me down.

I’m very tired, all the time. It tears my sleep away because it never lets my mind rest. I’m always thinking ahead, always worrying, always planning. Always trying to make things work. I’m never completely grounded in the here and now, and as we all know, this moment, right now, is the only one that truly matters.

“The only present that might exist is the one in my mind. It’s the closest we come to the absolute present.”

But then I wonder if I’m always tired because I’m always searching for a place and a time that doesn’t exist. I’m pouring all of my energy into creating the life I’ve always wanted to live, the person I’ve always wanted to be, and to some extent, the place I’ve always wanted to come home to.

Hiraeth: a homesickness for a home to which you cannot return, a home which maybe never was; the nostalgia, the yearning, the grief for the lost places of your past.

I guess that’s an apt metaphor for life.

We’re all searching for something. Some feel it more intensely, and those are the movers and shakers, the ones who really leave their mark on this world. They let that restlessness—that drive for more—fuel them. They soak in all the places and faces and names and gestures and words and glances and (not so) chance encounters and joys and tragedies of life that propel them forward. They use it all as fodder to create something bigger; bigger than themselves. Bigger than life, sometimes.

We’re really all time travelers, maybe trying to re-create a feeling we once felt or a dream we once had.

And through this yearning—this nostalgia—we come to create something even better.

“In Greek, ‘nostalgia’ literally means the ‘pain from an old wound.’ It’s a twinge in your heart, far more powerful than memory alone.”

We draw from our pain. We draw from loss and from heartache. I think the only line we can draw between right and wrong is whether or not we’re utilizing our experiences for the betterment of ourselves and the world around us. Whether or not we’re making something beautiful from something awful. Whether or not we’re able to transform pain into love.

I think home resides in the act of taking something born from darkness and baptizing it in the light of renewal. When you’re able to find peace within pain and build from it, manifesting something you never dreamed possible because it radiates so much light and purity and love—that’s when you’ve come home.

Home isn’t a place; it’s a state of being.

Home is balance. Home is reconciliation. Home is forgiveness. Home is release.

“It’s a time machine. It goes backwards, forwards. It takes us to a place where we ache to go again.”

We ache, we journey back and we take those grueling lessons that keep showing up for us, disguised as different faces and bearing different names, and we morph them into something better. We wake up and step into our power. We lay the foundation for the home we’ve either been struggling to return to, or the one we never had.

Home lies within us all. It’s just a matter of how we choose to make our way to it.

Source: Elephant Journal

Banks must disclose all relevant information

In the Philippines, the Financial Products and Services Consumer Protection Act (Republic Act No. 11765) requires banks and other financial service providers to disclose all relevant information concerning financial products and services. This law ensures transparency and protects the rights of financial consumers by mandating the disclosure of terms, conditions, and other pertinent details1.

In the Philippines, Republic Act No. 11765, also known as the Financial Products and Services Consumer Protection Act, requires banks and other financial service providers to disclose all relevant information concerning financial products and services.

Key Stipulations of the Law:

• Transparency and Disclosure: Financial service providers must ensure that all information about financial products and services is disclosed clearly and transparently. This includes terms and conditions, fees, charges, and any potential risks associated with the product or service.

• Consumer Rights: The law protects several rights of financial consumers, including:

  • Right to equitable and fair treatment

  • Right to disclosure and transparency

  • Right to protection of consumer assets against fraud and misuse

  • Right to data privacy and protection

  • Right to timely handling and redress of complaints.

• Regulatory Oversight: The Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC), and Cooperative Development Authority (CDA) are tasked with enforcing the provisions of this law. They have the authority to issue regulations, conduct market surveillance, and enforce compliance.

• Consumer Complaints: Financial service providers are required to have mechanisms in place for the effective handling and resolution of consumer complaints.

This law aims to foster consumer confidence in the financial market and ensure the stability of the Philippine financial system by promoting fair and sound market conduct.

Is there a specific aspect of this law you are particularly interested in?

Additionally, the Truth in Lending Act (Republic Act No. 3765) specifically requires the disclosure of finance charges and other related information in connection with the extension of credit.

Source: Ziggurat Real Estate

Loan Default Consequences in the Philippines: Legal Obligations and Lender Actions

 Introduction

In the Philippines, taking out a loan is a common practice for individuals and businesses to finance various needs, from personal purchases to business expansion. However, when a borrower fails to meet their repayment obligations, this results in a loan default. Defaulting on a loan has serious legal and financial consequences that borrowers must understand. This article provides an overview of the legal obligations that borrowers face, the possible consequences of loan default, and the actions lenders can take to recover their money.

 What is Loan Default?

A loan default occurs when a borrower fails to make payments on a loan as per the terms of the loan agreement. It could happen if the borrower is unable to pay a single installment or if they fail to repay the loan in full by the due date. The consequences of default vary depending on the type of loan, the terms of the contract, and the legal rights of the lender.

In the Philippines, loan agreements are governed by the Civil Code and relevant financial regulations. The loan contract itself typically defines what constitutes default and specifies the actions the lender can take in case of non-payment.

 Legal Obligations of Borrowers in the Philippines

When a person takes out a loan, they enter into a contractual obligation with the lender. Under the law, this contract binds the borrower to certain responsibilities, including:

1. Repayment of the Loan: Borrowers must repay the loan amount, plus any interest, on the schedule agreed upon in the loan contract. This is a primary legal obligation.

2. Payment of Interest and Penalties: Most loan agreements include interest and provisions for penalties or late fees in case of delayed payments. The borrower is legally obligated to pay these fees as per the loan contract.

3. Compliance with Loan Covenants: Borrowers are typically required to meet certain conditions, such as maintaining insurance for collateral or providing financial statements (for business loans). Failure to comply can trigger a default.

4. Notification of Financial Difficulties: In some cases, borrowers are required to notify the lender if they experience financial difficulties that could affect their ability to repay the loan. This can sometimes allow the lender and borrower to renegotiate the loan terms to avoid default.

If the borrower fails to meet these obligations, the lender is entitled to enforce the loan agreement through legal or extralegal means.

 Consequences of Loan Default

Loan default can lead to various legal and financial repercussions for borrowers. Some of the consequences include:

 1. Accrual of Interest and Penalties

Upon default, the loan typically continues to accrue interest and penalties, further increasing the total amount owed by the borrower. The exact rates for penalties and interest in case of default are specified in the loan agreement. These additional charges can significantly increase the debt burden.

 2. Demand for Full Payment

In many loan agreements, defaulting on a payment can trigger a demand for full payment of the outstanding loan balance. Lenders may exercise this option, requiring the borrower to pay the entire remaining loan amount, including accrued interest and penalties.

 3. Damage to Credit Rating

Defaulting on a loan can severely damage a borrower’s credit score or rating. In the Philippines, this information is reported to the Credit Information Corporation (CIC), which maintains a centralized credit database. A poor credit rating can make it difficult for borrowers to secure future loans, mortgages, or credit cards.

 4. Collection Efforts

Lenders often take aggressive steps to collect overdue debts. These efforts may include:

- Demand Letters: The lender will send formal demand letters, asking the borrower to settle their obligations within a certain period.

- Collection Agencies: The lender may assign or sell the debt to a third-party collection agency, which may resort to persistent calls or letters demanding payment.

- Harassment and Public Shaming: While this is illegal, some unscrupulous lenders resort to harassment or publicly shaming borrowers, particularly in the case of smaller loans like online loans. Borrowers should be aware of their rights under Republic Act No. 10173, the Data Privacy Act, which protects them from such abusive practices.

 5. Foreclosure of Collateral

For secured loans, such as home mortgages or car loans, the lender can initiate foreclosure proceedings if the borrower defaults. This allows the lender to take possession of the collateral (e.g., real estate or a vehicle) and sell it to recover the unpaid loan balance.

- Judicial Foreclosure: Involves filing a case in court, where the property is sold through a public auction. This process can take time due to court proceedings.

- Extrajudicial Foreclosure: If the loan agreement includes a power of sale clause, the lender can foreclose the property without going to court, but they must follow specific legal requirements such as notifying the borrower and publishing the foreclosure notice in a newspaper.

 6. Legal Action (Civil Case)

If the borrower defaults and does not cooperate with the lender’s collection efforts, the lender may file a civil case for collection of the outstanding debt. The lender can seek a judgment from the court requiring the borrower to pay the loan balance. If the court issues a favorable judgment, the lender can enforce it by garnishing the borrower’s bank accounts or seizing assets.

 7. Attachment of Assets

Under certain circumstances, the court may issue an attachment order on the borrower’s assets, which allows the lender to seize assets such as property, vehicles, or business interests. This usually happens in cases where the lender can prove that the borrower is fraudulently trying to hide assets or has no intention of repaying the loan.

 8. Garnishment of Income

For salaried individuals, a court may also order the garnishment of a portion of the borrower’s wages to satisfy the loan balance. This requires the borrower’s employer to withhold a portion of their salary and remit it to the lender.

 9. Imprisonment (for Special Cases)

The Philippines does not have a debtor’s prison, and imprisonment for debt default is prohibited under the Constitution and Revised Penal Code. However, there are exceptions, such as when the borrower commits fraud or issues a bouncing check (in violation of the Bouncing Checks Law or Batas Pambansa Blg. 22). In such cases, the borrower could face criminal prosecution, which may result in imprisonment or hefty fines.

 Lender Actions When a Loan Goes into Default

Lenders have several options for recourse when a borrower defaults on a loan. Depending on the circumstances, they can take the following actions:

 1. Restructuring the Loan

In some cases, lenders may be willing to negotiate with the borrower to restructure the loan. Loan restructuring can involve extending the repayment period, reducing the interest rate, or temporarily deferring payments. This allows the borrower to manage their finances while avoiding default. However, restructuring is typically granted only if the borrower communicates with the lender before the situation escalates.

 2. Demand Letters and Collection

The first action a lender typically takes is sending demand letters to the borrower, formally requesting payment of the overdue amounts. Lenders may then refer the debt to collection agencies if the borrower remains unresponsive.

 3. Filing a Civil Case

If the borrower continues to ignore repayment obligations, the lender may file a civil action for collection with the court. A favorable court judgment allows the lender to enforce the debt through various legal means, including garnishment or seizure of assets.

 4. Foreclosure of Collateral

For secured loans, lenders can initiate foreclosure proceedings to recover the unpaid loan by seizing and selling the collateral. The proceeds from the sale will go toward satisfying the outstanding debt.

 5. Assigning or Selling the Debt

In some cases, lenders may sell or assign the defaulted loan to a third party, typically a collection agency or a debt purchaser. This allows the lender to recover at least a portion of the unpaid loan, while the new owner of the debt assumes the responsibility of pursuing collection.

 Borrower’s Rights and Remedies

While lenders have significant recourse in cases of default, borrowers also have rights that must be respected:

- Fair Debt Collection: Lenders and collection agencies must follow ethical practices. Harassment, public shaming, and threats are prohibited by law. Borrowers can file complaints with regulatory bodies like the Bangko Sentral ng Pilipinas (BSP) or the Securities and Exchange Commission (SEC) if they experience abusive collection practices.

- Debt Restructuring: Borrowers may negotiate with lenders to restructure or re-amortize their loans to make repayment more manageable.

- Bankruptcy Protection: Under Philippine insolvency laws, borrowers who cannot repay their debts due to financial distress may consider filing for bankruptcy or insolvency to restructure their debts or liquidate assets to settle obligations. However, this is a complex legal process that requires court intervention.

 Conclusion

Loan default in the Philippines can lead to serious legal, financial, and personal consequences, ranging from damaged credit scores to the loss of assets. Borrowers must understand their legal obligations and take proactive steps to avoid default, such as communicating with lenders or exploring debt restructuring options. At the same time, lenders are empowered to take legal action to recover debts, but they must comply with legal procedures and respect the borrower’s rights.

Source: Ziggurat Real Estate