I took out a loan from a finance company for 6,000.They wanted some security so i listed a computer,tv treadmill and lawmower.They are now suing me but i no longer have any of the items i put down as security because they were old and over the past two years i threw them out.So what happens when they asked for these items ?
Most likely they just wanted leverage to threaten you. What they really want is the money, and what really matters is whether or not you can pay anything. They would be better off suing and getting a lien on your car than trying to take your junk. Do you really think they expected your junk to have any real value against a $6000 loan? Even if you could turn it over to them, what would it have reduced your debt by? They are not running garage sales. $100 wouldn't even pay someone to sell it. Did you provide serial numbers, or just list them generically? For $100 and a Saturday spent at garage sales, you could give them better junk than you had.
I did not give them any serial numbers.They just asked me to put down somethings they could use as security.There estimate was the stuff was worth 4,000.So what happens when they sue me and i no longer have this stuff?
How can a computer, tv, treadmill, and lawmower, used at that, be worth $4000? It might have been worth $1000 new. If they actually thought you had something worth $4000, they would have at least gotten the serial number, or made some attempt to determine it's real value and that you had it. They would have taken the reasonable actions one takes to protect a security interest worth $4000. Still looks like a routine set-up to be able to claim you "lied" on the application, to be able to threaten "criminal charges". Maybe useful in getting a debtor to cough up cash by begging from relatives. What does their BBB report say? What sort of terms did you get, on what was in reality a signature loan?
They'll file a suit to obtain a money judgement. If they obtain it, then they can garnish wages, put leins on other real property, or go through the legal wranglings to secure your OTHER valuable "stuff". Generally speaking that's what happens when you don't fulfill your agreements.
What other valuable stuff would they want? If they could get the car or house wouldn't they already have done that? Other than the car or house... what else is worth the hassle?
They can't get the car or the house unless they first file suit and win a judgement. Then they could record a lien, which would block sale of the encumbered property until they signed off.
