A provincial small claims court in British Columbia had granted a default order to CC Cornerstone Credit Ltd. after a defendant in the case, Janice Lozano-Juatco, failed to make a court appearance to dispute the money claim.
Several other people are also facing civil raps for non-payment of loans. The court judgment can affect the defendants’ financial standing in the banking community as these could be used as basis for other legal action.
Legal sources said the most tedious part of this collection process is enforcement. Will the company file for garnishment of her properties or bank accounts to cover the loan amounting to $3,727. What other avenues of enforcement that may be available need to be addressed, legal sources added.
“This court orders the defendant Lozano to pay directly to the claimant the sum of $3,727,” the court order states.
Amrit Dhaliwal of Cornerstone’s legal department clarified the loan process. “It is correct that we require co-borrowers’ be named in the loan documentation in order to grant a loan since our loans are unsecured. The obligation of co-borrowers, who are jointly responsible for a loan, are fully and completely explained to them by our staff prior to signing the loan documentation in the disclosure statements and other written documents delivered to borrowers and co-borrowers.
Borrowers and co-borrowers are also provided with the opportunity to review the material provided and seek independent legal or other advice as they deem appropriate.”