If I was at fault in an accident with my vehicle and now it is in a tow yard but it was used as collateral with a personal loan company, what are my obligations?

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If I was at fault in an accident with my vehicle and now it is in a tow yard but it was used as collateral with a personal loan company, what are my obligations?

I only had liability insurance and was not required to have full coverage. Do I void storage fees from the salvage yard?

Asked on November 6, 2018 under Business Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

You are obligated to pay the loan you took out. You are also obligaed to take steps to protect the collateral you gave--i.e. to pay the storage fees and any other amounts you have to pay to maintain your rights in and to the vehicle. When you give collateral, you need to do what you can to keep that collateral available to the lender.


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