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A deadbeat offers his truck as collateral to both his lender and his mechanic

A deadbeat offers his truck as collateral to both his lender and his mechanic (Photo: KUTV)

(KUTV) If someone can't pay you right away, they might offer you something as collateral. But what happens when the same item is put up as collateral with others, as well?

Shawn Sampson is an owner of K&S Auto in Lehi, Utah. He replaced a blown motor on a pickup truck and, in exchange, the owner of the truck was making payments.

“He was actually doing it and doing a good job,” Sampson said.

But then, with about $1500 of the $5000 bill still owing, Sampson says the truck went missing from his lot. It turns out it was repossessed by Mountain America Credit Union because the driver had stopped paying the credit union on the truck’s loan.

Sampson says he understands the bank needing to make itself whole by reselling the truck, but what about the $1500 the owner still owed Sampson for the work that had made the truck a lot more valuable?

Sampson says Mountain America told him he's out of luck.

"I have no collateral because Mountain America has my motor in their truck,” he said. “It was worth nothing before and now it's worth money that they're going to sell and make money on.

“I'm way mad. I'm way upset.”

Get Gephardt called Mountain America to ask about all of this. In a statement, a company spoke person decided Sampson did deserve to be made whole.

"While Mountain America was in no way responsible for the amount owed, we reached out to Mr. Sampson and offered compensation to make it right,” the statement reads. “We have tremendous respect for the hard work of local business owners."

Just like that, K&S Auto was paid for its work on the truck.

There are some pretty strict rules when it comes to repossessing a car. For example, had the truck been behind a gate or in a garage, the repo guy wouldn't be allowed to legally hook it and haul it away without first working out a deal with whoever had it. Because the truck in this case was parked out in the open in a parking lot, the repo guy was legally able to snag it without telling Sampson.

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