MenuConsumer secured lending is a commonplace part of many household budgets. Major purchases like homes and cars are almost always financed, while other consumer transactions, like the purchases of furniture, electronics, appliances, and HVAC equipment are sometimes financed. A lender will often seek to retain rights in collateral as additional assurance that the loan will be paid. Sometimes, a consumer will pledge property they already own as collateral to a new loan, such as a home equity line of credit. In the legal lingo, these are all "secured transactions" aiming to create secured debts.
Unperfected
When a secured loan is unperfected, the creditor has failed to properly take one or more steps to make its interest in the collateral safe from later third parties. Lack of perfection doesn't prevent repossession from the borrower, but may allow the bankruptcy trustee to avoid the lien for benefit of all creditors.
