What Rights Do Creditors Have?
A lender giving you credit believes that you will live up to the terms of the agreement. Since you are borrowing the creditor’s money the creditor has rights in the money borrowed. The creditor has a right to expect you to pay as agreed. The creditor can also require immediate repayment of the loan if you miss a payment(s). When May a Creditor Seize Your Property? A creditor will usually only seize property after all reasonable efforts to receive payments have failed. If a debtor fails to pay a secured debt, such as a conditional sales contract or a chattel mortgage, the creditor may take and sell the goods given as security without a Court judgment. The conditions on which a creditor may seize property are written into each contract. • In a conditional sales contract, the creditor owns the property bought on credit until the debtor makes the final payment. The creditor is, therefore, taking back his/her own goods. • In a chattel mortgage, the debtor signs a contract allowing the credi
