2 of the most avoided cases by a lending company is the BP 22 and Replevin case. It’s an SOP for lending companies in the Philippines today to require a car loan borrower to provide court case clearance should he or she be found to have previous filed financial related charges as well as civil case or any other case. Although rule states that 10 years age court cases may be subject for neglect which means no court case record, there are times that the number of counts matter and bottom line is, you will be required to get a court case clearance.

If you are to apply for the car loan without taking your car or any other types of collateral and non-collateral loan, it is strongly suggested as a first move if you know you already paid whatever shortcomings in finance or via the BP 22 bouncing check case so secure a court case clearance first to prevent disapproved loan application. You can read my posts on the top reasons for loan application disapproval. On the other hand, let the lending company find out and if records appear in your financial status, apply at once. This will take from 2 days to more than 1 week to get the said clearance. Again, this is provided that you have already settled your financial problems with banks or any other financing companies or lending companies in the previous years.

Why I came up with this post is due to an experience where a client of mine applying for car collateral loan had 3 court cases, 2 counts BP-22 or bouncing check case and 1 replevin case (creditors’ rights law in wikipedia). The problem is that, again, it is a requirement to produce a court case clearance in these types of financial problems, the client will not have enough time to deal with it handling other business matters. It’s a dilemma when this happens so for loan agents out there who are doing a professional job like me, it’s definitely one of the most I would like to avoid. I have learned my lesson. A client will always make way to avoid being questioned while not willing to provide what is required of him for reasons only the loan borrower knows.

As a short tip on how and where to get your court case clearance, just ask the lending provider on where your case was filed and the regional trial court in that locality is where you will secure a copy of the said clearance. You may also ask for a lawyer to do that for you but I am not sure how much fees will be charged on you for that particular service. You can’t go for pro bono lawyer in the Philippines this case to avail free service because finance cases like this will always involve money.

I am documenting these experiences so that others may learn from it whether you are a loan agent / consultant (or a borrower) and make a good service to satisfy clients like what I make sure to do as part of my free service. I am having problems with this client and to this date, January 30, 2014, he is still willing to take the loan but is not willing to produce the required document due to lack of time. Anyway, this client has already provided the court clearance required of him for the BP 22 case but is still trying to reason out with the lending company regarding his alleged and unproven replevin case. I already told him my position to this situation and I hope his ways work for him as I don’t want to argue with the marketing officers at the office just to have the loan approved. Next time, I already know what to do just in case I find out court case for a client – do ask the client at once to apply for and get a court case clearance.

Don’t forget to check our Philippines loan forum for more information, tips and guides in applying for a loan. If you are an agent, we also have a marketplace where you can promote and post your advertisements to find clients.