Legal Question in Business Law in Ohio

Re: unsecured loan

Non payment of a loan, unless fraudulently obtained, is not a crime. You can be sued civilly for the amount owed, but not prosecuted.

Re: unsecured loan

Dear Unsecured Borrower: 'Sorry to hear of your unemployment status.

Now, as to your concerns over the loan:

By definition, unsecured loans are not �collateralized�, i.e. they are not attached to or secured by any collateral to guarantee repayment. Such loans are unsecured because upon default of the borrower, the lender has nothing to attach even upon suit, In most states, the lender may not attach the borrower�s real or personal property. Unlike a mortgage, where the real property is the guarantee or collateral, there is no such guarantee in unsecured loans.

Lenders assume certain risks in making unsecured loans; they do so only upon ascertaining that the borrower has a good credit rating. Borrowers risk destroying good credit scores upon default.

Often also called 'signature loans', the lender has little more than the borrower�s signature. Lenders cannot sue and obtain judgments to permit their attachment or possession of your home, auto, RV, or any other personal property. Their only resort is to harass you with a barrage of letters and ominous �phone calls, and report your default to the credit reporting services, to destroy your credit. Tell them you do not wish to be called and will report such violations to the FTC and FCC, since annoying, repeated collection calls are a violation of law.

While an unsecured or business loan may seem attractive at the outset, it is only a short-term, temporary resolution of a financial problem, for which the borrower will pay a high premium or interest. And, while the lender assumes the risk, it is, at best, a calculated and experienced one.

If you have any further concerns, consult an experienced Attorney to guide, assist and advise you.

Good luck!

Sincerely,

J. Norman Stark