Legal Question in Credit and Debt Law in Texas

Hindering Collateral

My son is behind on his car loan payments. He thought the finance company was going to give him a little extra time but now they are demanding immediate release of the vehicle. He asked for a few days to either get the money together or find alternate treasnsportation. The collector said that he had to turn over the car immediately or be charged with ''Hindering Capital''. I've never heard of this term. Is the collector just blowing smoke?


Asked on 3/30/04, 8:50 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Hindering Collateral

It sure sounds like. The collector may have gotten confused with impairment of collateral, where the collateral securing the loan is being deliberately or negligently diminished. That doesn't apply to your son, either, unless he's doing something to substantially decrease the value of the vehicle.

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Answered on 3/30/04, 9:42 am


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