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I bought a business from someone for $20,000. After paying him everything, yesterday he messaged me, saying that my car is under collateral and he will seize the car if I don’t pay him an extra $5,000. The car is in my dads name. Should I report this to the police? Perhaps I should just leave it because he is asking me for money based on nothing. Is the car safe ?

closed as off-topic by Pete B., Bob Baerker, Dheer, Nathan L, Chris W. Rea Oct 31 '18 at 15:44

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    what country is this? – Kate Gregory Oct 31 '18 at 5:58
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    I'm voting to close this question as off-topic because it is a question about business law. – Pete B. Oct 31 '18 at 10:39
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    The short answer is: "No", but depending upon your sales agreement this person may be in the right. Which is why you NEED a lawyer. – Pete B. Oct 31 '18 at 11:32
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    Sounds like a scam - are you sure you 'bought a business'? Likely outcome is that you bought worthless paper and this scammer is just going in for more. Get a lawyer + go to the police immediately if you want your original 20k back. – Grade 'Eh' Bacon Oct 31 '18 at 15:13
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    I'm with @Grade'Eh'Bacon. The collateral shenanigan is so ridiculously outrageous that it throws the previous transaction into doubt. – stannius Nov 1 '18 at 15:23
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No, not like this. You may be totally liable for any debt of the business, but seizing things is an official act. Also this is in this case seizing THIRD PARTY collateral as you said the car does not even belong to you.

In this particular case, there is a criminal background. It is called extortion. Report to the police.

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