iseedit - 5/12/2016 05:32
JimmyP - 5/12/2016 18:27 That is correct. Lenders are quick to attach to collateral because it is a threshold for getting the loan. When the loan is satisfied, there is no compelling reason to take the time to release the collateral and, if you come back, they don't need to go through the process again. I don't think they are intending to do wrong, it just can work out that way. Many times, you find that the collateral is still attached when you go for a loan elsewhere.
All collateral that banks hold, helps their bottom line - They use it for bank examiners and their books. Helps with other non-performing loans. So, in reality, they are using your items for their good.
I'm not sure, what happens if the bank has your collateral and they go into receivership, even though you don't owe any money or have a loan against the collateral ?