Concern:
A resident reserved a unit on October 20, 2023, paying a processing fee of PHP 150,000. The deadline for submitting requirements was November 2, 2023. The daughter, due to her night-shift work, could not complete the requirements until 2024. Additional requirements (e.g., colored photocopies, proof of billing under her name, and a letter from the apartment owner abroad) caused further delays. Despite compliance efforts, the company is pressuring them with threats of cancellation, claiming no refund of the processing fee. The customer received no communication until October 21, 2024, despite having submitted some requirements on October 14, 2024. They now wish to withdraw but fear losing the fee. There is also no available customer service.

∇ Legal Contemplator

Let’s break this down step by step, carefully considering each element of this case. As I think through this, I may need to backtrack, clarify doubts, or expand on an incomplete idea.

1. The Initial Transaction

When the processing fee of PHP 150,000 was paid on October 20, 2023, it likely formed part of a contract. Processing fees are often non-refundable, but this depends on whether:

The terms and conditions (T&Cs) of the reservation explicitly state that the fee is non-refundable.
The company provided clarity on what the fee covers. For instance, does it include administrative tasks, or is it purely a reservation fee?
The obligations of both parties were explicitly communicated and accepted by both.

Questions to Consider:

Did they sign a contract?
If yes, the exact clauses are critical. Did the contract state the refund conditions or what would happen if requirements were delayed or incomplete? Without such provisions, fairness (equity) under Philippine law may become a key point.
Was the processing fee really used?
The term “processing fee” implies that the company would begin working on something. If no real action has been taken, could this invalidate their claim to the fee?

2. The Issue of Requirement Delays

The family admits there were delays in completing the requirements due to the daughter’s night-shift work. However, the company’s instructions added confusion:

They requested colored photocopies (not stated initially).
They demanded proof of billing under the daughter’s name, although the daughter rents a property.

This raises concerns:

Were the requirements and deadlines clearly stated when the reservation was made?
Was there an opportunity to request clarifications?

Relevant Considerations:

Under Article 1159 of the Philippine Civil Code, contracts are binding in whatever form they are entered into. However, Article 19 (relating to acts against good faith) and Article 20 (damages due to unlawful acts) provide remedies if one party acts unfairly or imposes unnecessary burdens.

The company’s changing and unclear requirements may qualify as bad faith or an abuse of rights under Article 19.

3. Late Communication from the Company

The company sent no communication between November 2023 and October 21, 2024. This long gap of silence might indicate negligence. Customers generally have a right to timely updates, especially when requirements are pending.

Questions Here:

Did the family follow up during this time?
If they repeatedly tried contacting the company but were ignored, it could strengthen their case.
Why did the company wait so long?
Delaying communication until the October 2024 deadline seems counterproductive.

4. Proof of Address Dispute

The company’s refusal to accept alternative proof of address (despite valid explanations) raises further concerns:

The daughter’s tenancy situation is typical. Many Filipinos renting homes lack billing accounts under their name.
The company’s demand for a letter from the overseas owner seems unreasonable, given that the caretaker provided a valid letter about rent increases.

Legal Angle:

Under Consumer Act of the Philippines (RA 7394), companies must deal fairly with consumers. Denying reasonable alternatives for proof of address may be construed as a violation of consumer rights.

5. Threats of Cancellation and Non-Refundability

The company’s statement that they would cancel the reservation without refunding the PHP 150,000 is troubling:

Is it justified?
The family complied with the requirements to the extent possible, even submitting on October 14, 2024. The company’s refusal to accept legitimate documents seems arbitrary.
Was there a “grace period”?
Even if deadlines were missed, many contracts include provisions for leniency.

If no processing has occurred, unjust enrichment might apply. Per Article 22 of the Civil Code, a party cannot unjustly benefit at another’s expense. If the company cancels without refunding despite no substantial processing work, they may be liable for returning the fee.

6. Customer Service Absence

The lack of customer service complicates things. It prevents the family from raising concerns or negotiating terms. Does the company’s silence breach consumer protection laws?

7. Resolution Pathways

Let’s consider possible next steps.

A. Negotiation

The family could propose to withdraw and request a partial refund based on their compliance efforts. This could minimize financial loss while avoiding prolonged conflict.

B. Filing a Complaint

If negotiation fails, filing a complaint with the Department of Trade and Industry (DTI) could be effective. The DTI mediates disputes between consumers and businesses, often at no cost.

C. Legal Action

If the case escalates, the family could:

File a Small Claims Case (if the amount falls within jurisdiction).
Argue bad faith and unfair practices under Articles 19, 20, and 21 of the Civil Code.

Final Thoughts and Uncertainties

It’s clear the company’s behavior—changing requirements, refusing reasonable alternatives, and delaying communication—is questionable. However, some areas remain unclear:

Exact contract terms are critical. If the T&Cs strongly favor the company, the family’s legal arguments may weaken.
Evidence of communication efforts is key to proving bad faith or negligence.

Final Answer:

Attempt negotiation with the company, emphasizing compliance efforts and fairness.
If unsuccessful, file a formal complaint with the DTI.
Consider legal action if necessary, focusing on bad faith, consumer rights violations, and unjust enrichment.