Purchase Money Security Interest

[Noangelmom]

Has anyone had any experience with this term? Lawyers from Best Buy sent my lawyer a letter including a reaffermation agreement stating that they have a lein against some collateral ..........??????????? What!?!?!? I have no idea what they are talking about! The only thing I can think of is the microwave DH bought in March or the TV we bought last year? No clue what this is all about. I'm going to call my lawyer today, but I want to know if we reject the reaffirmation (which we will) will they come take whatever it is they think is collateral? Apparently our "balance" is $321.36, and they want half. THere is no way I am reaffirming, but seriously, why would BB take the time to go after $160?? Do they not have better things to do?

Filed 5/13/10
341 7/8/10
no asset case determined 7/13/10
discharge 9/8/10

[dollarshort]

They won't (too expensive for them)!!!! They are hoping you will sign the reaff and pay up. Tell them you want to surrender the merchandise! The likelyhood of them coming to get a tv you bought last year or a used microwave...better chance of getting struck by lightning. I can't believe they are haggling over 1/2 of 321.36 though...I guess times are tough all over!

Has anyone had any experience with this term? Lawyers from Best Buy sent my lawyer a letter including a reaffermation agreement stating that they have a lein against some collateral ..........??????????? What!?!?!? I have no idea what they are talking about! The only thing I can think of is the microwave DH bought in March or the TV we bought last year? No clue what this is all about. I'm going to call my lawyer today, but I want to know if we reject the reaffirmation (which we will) will they come take whatever it is they think is collateral? Apparently our "balance" is $321.36, and they want half. THere is no way I am reaffirming, but seriously, why would BB take the time to go after $160?? Do they not have better things to do?

Filed 5/13/10
341 7/8/10
no asset case determined 7/13/10
discharge 9/8/10

[catleg]

This is just a bluff. Check the 'Repossession' forum for more discussion about BB sending these letters. Your instinct is correct, this letter does not warrant a response.

[nceguyfromne]

Don't lose sleep over this.

When you signed up for your Best Buy card, you granted HSBC Bank, via the contract you signed, a purchase money security interest (PMSI), which basically means the items you charge to the card are legally considered collateral, like your house or car would be for a defaulted mortgage or auto loan. However, unlike a mortgage or auto loan, they do not want your stuff back; they are hoping you will give them money. Technically you can give the items (which are now worthless) back to them and that will be the end of it. Most people, however, simply ignore them. Whatever you do, DO NOT reaffirm. You are no longer financially responsible to them and want to keep it that way.

By refusing to reaffirm or pay them, there is a chance (but only an EXTREMELY small one) they could go to court and get a Writ or Replevin, which is a court order for you to return the items. No matter what, though, you are not financially responsible to them; that responsibility was discharged in bankruptcy. A court order to return the items is their only option UNLESS you volunteer to do otherwise. However, this would be very expensive for them and in the case of a $300ish balance it is all but 100% certain they won't. My attorney received the same exact letter from the same bank and "law firm" for a jewelry charge card and he advised me to just ignore them. He told me he would send them a letter stating the items I charged were gifts and no longer in my possession. That was the last and only time I heard from them.

Also... notice how that letter does not list what that collateral is... because they have no idea.

[tcreegan]

ignore BB

Hello noangelmom,

BB is infamous for this tactic. Just ignore them.

BB = Big Bully

Tom in Colo

ps: I can see why they do it, probably works on some folks and doesn't cost much to implement. Must be profitable for them.