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Can the loan company from my school hold my cdl as collateral?

by Dan Shepard
(Phoenix, AZ)

I got a loan to go to truck driving school and the loan company made me sign a document saying that if I did not pay on my loan they would suspend my CDL until I paid. Is this legal?

Comments for Can the loan company from my school hold my cdl as collateral?

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Sep 26, 2010
Rating
starstarstarstarstar 		Loan company wildin' out
by: Hervy

Dan I agree with Dennis,

Keep up your communication with the lender and let them know whats going on, pay them something every month.

I really don't see how they be in the position to suspend your CDL though. I think they are just wildin out. Call your local DMV and ask can a lender do anything like that to your license.

Good luck,
Hervy
Sep 26, 2010
Rating
starstarstarstarstar 		Lender wilding out for payments
by: Anonymous

Dan I agree with Dennis,

Keep up your communication with the lender and let them know whats going on, pay them something every month.

I really don't see how they be in the position to suspend your CDL though. I think they are just wilding out. Call your local DMV and ask can a lender do anything like that to your license.

Good luck,
Hervy
Sep 22, 2010
Rating
starstarstarstarstar 		Who can suspend a CDL?
by: Jimmy

Only the DMV can suspend your license. Jimmy
Sep 21, 2010
Rating
starstarstarstarstar 		False......
by: Jimmy

Only the state DMV can suspend your license. If you get a ticket/serious offense and are found guilty, it's not the court that suspends your license, it's the DMV. The loan company can and will hound you for the balance though. Jimmy
Sep 21, 2010
Rating
starstarstarstarstar 		signed
by: Anonymous

why did u sign it? i would have gone somewhere else.
you could fight it but legal.
Sep 21, 2010
Rating
starstarstarstarstar 		WHA?
by: NickV

Honestly this doesn't sound legal but I can't give you a solid answer. I don't know how they would have anything to do with your local DOT and have as much pull as to strip people of their license for faulty payments. BUT, if they made you sign paperwork stating exactly that then you may be screwed. They may be able to take that paperwork to the DOT and they may be able to do something but the whole thing sounds fishy quite honestly. What's the problem with paying it? I'm sure they told you but most large carriers will pay a percentage of that payment every month. I sure wish I could help more but the lines get shaky after you sign a document stating they can do exactly what they say they are gonna do. Still don't think its legal but I could be wrong. Good Luck
Sep 21, 2010
Rating
starstarstarstarstar 		WHA?
by: NickV

Honestly this doesn't sound legal but I can't give you a solid answer. I don't know how they would have anything to do with your local DOT and have as much pull as to strip people of their license for faulty payments. BUT, if they made you sign paperwork stating exactly that then you may be screwed. They may be able to take that paperwork to the DOT and they may be able to do something but the whole thing sounds fishy quite honestly. What's the problem with paying it? I'm sure they told you but most large carriers will pay a percentage of that payment every month. I sure wish I could help more but the lines get shaky after you sign a document stating they can do exactly what they say they are gonna do. Still don't think its legal but I could be wrong. Good Luck
Sep 21, 2010
Rating
starstarstarstarstar 		Can the loan company from my school hold my cdl as collateral?
by: Dennis Shipman

I am not an attorney, and suggest strongly you consult with one. But on its face, as you explained it, that clause is not enforceable. Try and work out a reasonable resolution with the lender, though, to protect your credit rating. These are tough economic times. Lenders know it, and may be willing to work with you so long as you communicate with them, and, more importantly, make a good faith effort to pay down this loan. Best of luck. 10-4?

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