Can a finance company use someone elses car for collateral on a personal loan?
When you take up a loan, you can choose a secured loan, meaning pledging an asset as collateral to back the loan and give you a better rate. If you are unable to meet your obligations of that loan, that collateral or asset can be seized. If you’ve chosen an unsecured loan, meaning no collateral has been pledged, the financing institution can still find ways and means to try and recover the amount of money that is due to them. You’d best check the T&Cs of your contract to determine what you’ve signed up for!
My father took out a personal loan through a finance company last year in 2006. The finance company wanted a car for collateral and he used my car title even though the car title is in my name. He passed away in April of 2007, I can not afford to pay the finance company the payment amount they were charginghim on the loan on a monthly basis. They are threatining to take my car if I can not pay it even though the loan is in my father’s name and the car title is in my name only. He did not leave a will and his house was under mortgage so there is no estate. Is there anything I can do to save MY car from repossession. I do understand that paying the bill for the loan each month is the way to do that but I recieve SSI and do not have as much income as my father had. Please help?
