My son got a loan from Security Financial and used several items as collateral. He recently lost his job, fell behind on payments, and they came to the house to tell him that they would be taking him to court to get the collateral since he couldn’t pay. He told them he sold the collateral to make previous payments to them. Now they are threatening him with jail for the “felony” of selling his collateral.
Can Security really send my son to jail for selling the collateral on this loan?
What I do know is that it is never a good idea to sell or dispose of any collateral that secures a loan without the lenders permission. However, I have no knowledge about the legal claim the collector is making.
You should contact a licensed attorney in your state and discuss the situation with them.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.