Can loan company repossess personal itemsbelongings with him. C

I took out a personal loan in state of SC in my name only. The agent asked for household items to be listed for collateral. The items listed were my husbands even though he was not on loan. We separated and he took his belongings with him…can they repossess his items if I’m in default of loan even though he didn’t sign loan papers?

Asked on January 17, 2018 under Bankruptcy Law, North Carolina


Eric Olsen / HELPS Nonprofit Law Firm

Answered 2 years ago | Contributor

Certain higner interest loan companies list  personal property items,  such as a tv, computer, lawn mower, etc. as secuirty for a loan primarily to intimidate a borrower into repayng the loan.  Whether its your property or not it is not at risk.  These companies would virtually never take steps to repossess household items.  This type of property is essentially worthless  and the complications involved  are too much to enforce any such agreement.  Sure anything is possible, you could be struck by lightening  but a loan company pressing repossession of household iitems is about he same odds. 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Legally, they cannot take or repossess anything which was not owned by you: you had no right or power to encumber another person's belongings or to give person (or company) A a right to person B's possessons.
However, by listing the household items, you created a presumption that you had the right to do so (i.e. that you owned them): the loan company could reasonably and legally try to take those items and your husband would have to prove that despite you claiming these as your own, they belong to him alone. If he can't do that, the loan company could get them; and if he *can* prove that you had no right to offer his belongings as collateral, the loan company could sue you for fraud, and possibly press charges for criminal fraud, too, since you lied to them in the loan application. NEVER list any property you are not sole owner of as collateral.

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