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  1. #1
    Join Date
    Nov 2008
    Posts
    3

    Default Auto Title Loan

    My question involves collection proceedings in the State of Texas:
    My son borrowed money on his vehicle about 3 yrs ago. He shortly wrecked it afterwards. It sat in the driveway for a few months before he finally got a wrecking yard to come and get it. He now finds out that the auto loan maker is threatening to put him in jail because he can't produce the car and he doesn't know what wrecking yard it was taken to. Can they put him in jail if he cannot produce the car?

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Auto Title Loan

    The're probably referencing this statute:
    Quote Quoting Texas Penal Code, § 32.33. Hindering Secured Creditors.
    (a) For purposes of this section:
    (1) "Remove" means transport, without the effective consent of the secured party, from the state in which the property was located when the security interest or lien attached.

    (2) "Security interest" means an interest in personal property or fixtures that secures payment or performance of an obligation.
    (b) A person who has signed a security agreement creating a security interest in property or a mortgage or deed of trust creating a lien on property commits an offense if, with intent to hinder enforcement of that interest or lien, he destroys, removes, conceals, encumbers, or otherwise harms or reduces the value of the property.

    (c) For purposes of this section, a person is presumed to have intended to hinder enforcement of the security interest or lien if, when any part of the debt secured by the security interest or lien was due, he failed:
    (1) to pay the part then due; and

    (2) if the secured party had made demand, to deliver possession of the secured property to the secured party.
    (d) An offense under Subsection (b) is a:
    (1) Class C misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is less than $20;

    (2) Class B misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $20 or more but less than $500;

    (3) Class A misdemeanor if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $500 or more but less than $1,500;

    (4) state jail felony if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $1,500 or more but less than $20,000;

    (5) felony of the third degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $20,000 or more but less than $100,000;

    (6) felony of the second degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $100,000 or more but less than $200,000; or

    (7) felony of the first degree if the value of the property destroyed, removed, concealed, encumbered, or otherwise harmed or reduced in value is $200,000 or more.
    (e) A person who is a debtor under a security agreement, and who does not have a right to sell or dispose of the secured property or is required to account to the secured party for the proceeds of a permitted sale or disposition, commits an offense if the person sells or otherwise disposes of the secured property, or does not account to the secured party for the proceeds of a sale or other disposition as required, with intent to appropriate (as defined in Chapter 31) the proceeds or value of the secured property. A person is presumed to have intended to appropriate proceeds if the person does not deliver the proceeds to the secured party or account to the secured party for the proceeds before the 11th day after the day that the secured party makes a lawful demand for the proceeds or account. An offense under this subsection is:
    (1) a Class C misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of less than $20;

    (2) a Class B misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $20 or more but less than $500;

    (3) a Class A misdemeanor if the proceeds obtained from the sale or other disposition are money or goods having a value of $500 or more but less than $1,500;

    (4) a state jail felony if the proceeds obtained from the sale or other disposition are money or goods having a value of $1,500 or more but less than $20,000;

    (5) a felony of the third degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $20,000 or more but less than $100,000;

    (6) a felony of the second degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $100,000 or more but less than $200,000; or

    (7) a felony of the first degree if the proceeds obtained from the sale or other disposition are money or goods having a value of $200,000 or more.

  3. #3
    Join Date
    Nov 2008
    Posts
    3

    Default Re: Auto Title Loan

    Yes that is what they sent him on the penal code. Thanks for all the help as my son was scared to even go anywhere of fear he would be arrested. Nice to know its just a threat that they can't carry out!

  4. #4
    Join Date
    Nov 2008
    Posts
    3

    Default Re: Auto Title Loan

    Although I am curious about one thing. I didn't think you could go to jail either for not paying back a loan but they said this is considered as theft being they have the title and he won't give them the vehicle. Which he can't because it is wrecked. They said that the wrecking yard should had shown the VIN as wrecked but they aren't pulling up anything on the vehicle and this was about 2 1/2 yrs ago that it went to the wrecking yard. Its like the vehicle just disappeared. Therefore, they think he still has it. So that is what I was concerned about. They are calling it theft.

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