Stolen item as collateral

[Alexandoy]

Let me share this story of a friend who was borrowing money from me. He would pawn his watch if I could lend him a big amount. The watch looked original and during that time the watch is considered to be more than a jewelry item. But I declined because I did not have $200 that he needed. He went to another friend and got a loan.

After some time the friend called me. He was in search of the borrower because the cops came to inquire about the watch. Oh no, it was stolen from the owner. The borrower was gone and fortunately the lender was not arrested and the case was settled amicably by giving back the watch to the owner. That is a neat lesson to me.

 

[btaliat]

People can be so cunning at times. And in oder to fall for their tricks, if we need to be watch out. Though I have never asked people to give me collateral before I give them loan. I only lend based on trust and what I can afford. But from your story, I have learnt to first verify the collateral first before accepting it. If the matter was not amicably settled, the lender might be in trouble by now on a matter he was innocent of. Can you imagine?

 

[Mika]

I once read in newspaper that a guy forged papers and used someone's property as a collateral for a bank loan. The fraud case would have never come to limelight unless the original owner tried to sell his property. The fraudster was apprehended and sent to jail. Sometimes even the bank employees engage on such cases.

 

[Lens1000]

That's a food for thought. Fraudsters are everywhere and they are discovering new fraud techniques each new day. I will call this technique " stealing and collateral techniques "
. It's a shame that some people thinks and make researches on how to play on the intelligence of others and they do it with impunity.
These days one need to be very cautious

 

[Richee84]

In deed this a great lesson to all. It's such a pity that the other guy fall for it but that God he was not arrested but just ask to return the watch. I think it's u give out what u know u can afford to loose in case the person did not repay back than collecting collateral from a friend.

 

[Abigael]

Wow, that is such a big lesson to learn indeed. Carelessly taking just any collateral could land you in trouble. That is why even big institutions asks for proof of ownership for your collateral. If it is a car, then you should show your log book and all the other documents that show the car is really yours.

 

[sincerem]

A neat lesson indeed, it shows that, you shouldn't borrow money to someone who is too desperate for loan collateral to solve his or her demanding needs. I'm careful about taking such kind of collateral cos humans are simply unpredictable they act dangerously. That's why we ought to be careful about offering money to strangers.