Some Filipino money lenders, their borrowers and their guarantors are in trouble in Saudi Arabia.
This has prompted the Philippine Embassy in Riyadh to issue a reminder to Filipinos that “5-6” or lending money at usurious rates is considered a criminal offense in the Middle East kingdom.
The warning came after reports said that some Filipinos who contracted loans or acted as guarantors for loans were in jail and were seeking assistance from the Philippine Embassy in Riyadh and the Consulate in Jeddah.
The Department of Foreign Affairs reported Friday that the embassy reminded Filipinos in Saudi Arabia that guarantors faced penalties together with the borrower if a case was brought to the police.
The embassy strongly appealed to Filipinos to avoid engaging in these types of transactions to avoid serious problems in the foreign land.
Although lenders reportedly try to clothe loans in the form of private promissory notes, it may be noted that installment payments amount to more than the cash borrowed.
Should the borrower default and the lender goes to the police to complain, the borrower as well as the guarantor can face imprisonment until the amount is fully settled.
Usually, all the persons involved in the loan are detained,” the embassy said. Tina G. Santos