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creditor threat to show up with co. sheriff

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B

basser

Guest
What is the name of your state? Oklahoma
I took out a small loan when my job started slowing down. They asked what I had for collateral and I said I had an old computer with a few programs to go with it. They said that would be fine. Shortly after recieving the loan I was laid off and have been trying to find a job that gives me enough hours to make ends meet, which so far has been unsuccessful. So I had fallen behind on the payments. I soon recieved a letter from them stating that I needed to make a payment and they also stated that I never even made one payment, which I had. They would come out and if I wasn't home they would talk to the neighbors and tell them all about my loan and their problems with it. Yesterday they showed up and left a note on my porch saying that they will be out today or tomorrow with the county sheriff to pick up the collateral. I do not mind giving it to them but I feel like they are using illegal actions in this case, by threats of bringing the sheriff, by picking up the collateral without going to court first, I don't remember signing a security agreement with them and now they are stateing that the "old" computer they agreed to loan the money on is a brand new one. I hate it that I cannot repay the loan, but it doesn't seem like I will be able to anytime soon. Like I said, I don't mind giving them the old computer and programs, I have them boxed up and ready to take to them, but, is what they are doing illegal? and when I take the collateral to them can I insist on a release on the loan? They are the original creditors not debt collectors.
Thank you
 


B

basser

Guest
Yes I signed a contract with them. It is a standard form and says nothing about the legalities of them writing threats about showing up with the county sheriff with or without going to court, nor does it say anything about willfully turning over collateral or recieving a release after the collateral is turned over. All I am asking is ,, is it my right to ask for the release? and is it their right to threaten me (in writing) with the sheriff without going to court?
 

JETX

Senior Member
From your post, it sounds like you signed a promissory note with a security (the computer). If correct (and only an assumption since we cannot read the document) your breach of the agreement gives them the right to immediate seizure (repossession) of the security (the computer). They do NOT need a court order since you already gave them that right (in the agreement).

To answer your questions:
Q1) "is what they are doing illegal?"
A1) Not if the signed agreement gives them the 'security interest' in the collateralized property (see above).

Q2) "and when I take the collateral to them can I insist on a release on the loan?"
A2) Maybe. It depends entirely on the wording of the agreement. For example, if it includes any clause as to value of the collateral or difference between amount owed versus recovered value, then you could be liable for additional costs.

Q3) "It is a standard form and says nothing about the legalities of them writing threats about showing up with the county sheriff with or without going to court, nor does it say anything about willfully turning over collateral or recieving a release after the collateral is turned over."
A3) Read the agreement again. I am sure that it includes there right to seize the 'security' in the event of breach.

Q4) "All I am asking is ,, is it my right to ask for the release?"
A4) See A2.

Q5) "and is it their right to threaten me (in writing) with the sheriff without going to court?"
A5) Probably. Again, read and understand the agreement. Your situation is very much like a car loan.... the lender retains a security interest in the car (your computer) and can repossess it in the event that the debtor (you) fails to pay as agreed. They don't need a court order to repossess the car and don't in your case either.
 

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