First rural bank Small Claims Court case successfully settled

January 05, 2009 – The first small claims case hearing involving a rural bank in the Philippines was successfully conducted in twenty minutes and the case decided on in one-and-a-half hours in a Small Claims Court (SCC) in Davao. The case involved a microfinance client with an outstanding loan of Php 18,000 (from an original loan of Php 40,000) from a rural bank; the client agreed to settle the amount with the bank within the next eight months.

The SCC concept originated in the United States and was formulated for adoption in the Philippines with assistance from United Stated Agency for International Development (USAID) and the American Bar Association (ABA)-Rule of Law Initiative (Asia Division). The project is currently being tested in pilot courts all over the country. Recently, the USAID-supported Rural Bankers Association of the Philippines – Microenterprise Access to Banking Services (RBAP-MABS) Program collaborated with the Rule of …