Asked by shaianne roache on Jun 22, 2024
Verified
As discussed in Giles v.First Virginia Credit Services,Inc. ,the case in the text,creditors that act improperly in repossessing collateral:
A) lose their security interest in the collateral.
B) must return the repossessed collateral.
C) are liable to the parties injured.
D) lose priority in bankruptcy proceedings.
Security Interest
A legal claim or right granted to a creditor over the borrower's assets as a security for the repayment of a loan.
Repossessed Collateral
Assets that have been taken back by the lender from the borrower, usually due to default on a loan.
- Comprehend the judicial outcomes for entities engaged in secured transactions when they fail to comply with regulations.
Verified Answer
MK
murali kumarJun 25, 2024
Final Answer :
C
Explanation :
This case reinforces the rules that require creditors to act properly when they repossess collateral.
Learning Objectives
- Comprehend the judicial outcomes for entities engaged in secured transactions when they fail to comply with regulations.