Seize vehicle without lien +?

[GP2GP]

What is the name of your state? South Carolina

While I was in Europe a contractor started a carpet replacement job for my wife. Long story short he ruined all the carpet and abandoned the job before it was finished but not before he went to my wife’s work and conned her into a cash payment before she saw what he dad done. BIG mistake, now we are out $4200 materials and labor.

In an effort to stave off legal action as long as possible he has signed several documents. One was an agreement to pay a third party to re-install the carpet. When the third party installed the carpet, low and behold he didn't have the money to pay them. Of course I paid them.

Then he agreed to sign a promissory note and pay me $500 per month but he could not make the first payment until December 1st (this was early November). As expected, he never showed up to make a payment. I am not going to call him simply because I don’t need to hear anymore lies.

He is operating his business under the radar. He has no checking account, he has no vehicles or real estate in his name. He has no business license but has the name of his business professionally painted on the side of the truck.

For the promissory note I got the longest one I could find on the internet and buried a clause on the third page that he was putting up all of his vehicles, tools and personal effects as collateral for the note. He signed it without reading it, I even had him initial each page.

I am preparing to send him a registered letter to notify him he is in default.

My questions:
Since his truck and trailer have the name of his business on them can I have a collection agent seize them even though I don't have an official lien on them and they are not in his name? (I had him sign the note personally and as a representative of his business)

He has no clue that he even put up any collateral. Other than notifying him that he is in default and that I am turning the matter over to a collection agency, do I have any other obligation to him other than filing at the courthouse?

For someone operating a business without a license and a contractor without a contractors license, is there any recourse with the licensing officials?

Any advice would be appreciated.

Not that it is relevant. My goal has shifted from getting my money back to putting this crook out of business. I have since discovered other people he has similarly ripped off. Regardless of the outcome of the promissory note, after mid April I am notifying the IRS about his business and supplying them with copies of receipts where we, and other people, paid him cash and checks.

[racer72]

Since his truck and trailer have the name of his business on them can I have a collection agent seize them even though I don't have an official lien on them and they are not in his name? (I had him sign the note personally and as a representative of his business)

Not unless you want to be arrested for theft. Only specific licensed businesses have the right to use a mechanic's lien, you do not. You are also not licensed as a credit lending company or organization. Also, if the vehicles are not his, as you previously stated, they are not his to take.

He has no clue that he even put up any collateral. Other than notifying him that he is in default and that I am turning the matter over to a collection agency, do I have any other obligation to him other than filing at the courthouse?

Before you take any action, you better have a judgment in hand. The best you can hope for with your contract is to have is considered a failed private financial arrangement, only the courts can grant you the right to seize assets. What you want to do is a form of loan sharking. That is not legal.

For someone operating a business without a license and a contractor without a contractors license, is there any recourse with the licensing officials?

Only if he is passing himself off as licensed. Because you failed to take this into consideration prior to hiring the guy, the fact he is not licensed is now a moot point.

Before digging yourself into a possible nasty legal situation, I would advise having your contract reviewed by an attorney and verify that it is legal and would hold up under scrutiny in a court of law. You could find yourself needing legal counsel for other reasons if you try to enforce a possible illegal contract.

[GP2GP]

Originally Posted by racer72

Not unless you want to be arrested for theft. Only specific licensed businesses have the right to use a mechanic's lien, you do not. You are also not licensed as a credit lending company or organization. Also, if the vehicles are not his, as you previously stated, they are not his to take..

Even if he agreed to the mechanics lien when signing the note? What about the tools in the vehicles?

Originally Posted by racer72

Before you take any action, you better have a judgment in hand. The best you can hope for with your contract is to have is considered a failed private financial arrangement, only the courts can grant you the right to seize assets. What you want to do is a form of loan sharking. That is not legal...

I find it hard to consider it loan sharking. This guy is a professional con artist. But I do concur that I must go through the courts. I guess more aptly put would have been, do I stand a chance of having the authority granted in court to sieze the vehicles used in his business, even though they are not in his name?

Originally Posted by racer72

Only if he is passing himself off as licensed. Because you failed to take this into consideration prior to hiring the guy, the fact he is not licensed is now a moot point....

Prior to doing the work he told her he was licensed and bonded and she took him at his word. Upon furhter investigation, he was neither.

Originally Posted by racer72

Before digging yourself into a possible nasty legal situation, I would advise having your contract reviewed by an attorney and verify that it is legal and would hold up under scrutiny in a court of law. You could find yourself needing legal counsel for other reasons if you try to enforce a possible illegal contract.

For sure I will do everything to the letter of the law. But doing so sure puts you at a disadvantage when dealing with scumbags like this.

Thank you very much for your time!