If you default on an unsecured loan, the lender can seize your car and sell it to repay the loan.

Name: If you default on an unsecured loan, the lender can seize your car and sell it to repay the loan.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is false. An unsecured loan is not backed by collateral, such as a car, so the lender cannot seize any property if the borrower defaults. However, the lender can take legal action to recover the money, which may include hiring a debt collector or taking the borrower to court.

If You Default on an Unsecured Loan, the Lender Can