Security interests, which operate similarly to liens, are used as financial collateral by lenders. In this case, they were used to secure the value of the companies’ heating, ventilation, and air conditioning units. They’re a common practice found within the home equipment rental industry, but usually, the interests equal the approximate amount of the equipment.
In a statement of defence filed on behalf of Krimker, all allegations made against the CEO are denied. It notes that, as a corporate officer, he is a legally separate entity from the companies and that his role does not see him involved in “day-to-day operations." The consumers' claim, however, alleges Krimker was the “directing mind” of the operation, allowing him to “incorporate multiple companies through which he acts to evade liability," and is therefore jointly liable.
Donev agreed to the replacement and signed a document with ‘Simply Green Home Services’ that the salesperson gave to him the claim states. The agreement did not include the total amount of money Donev would later become liable for or any kind of payment schedule, it continues. Bonnick’s case is not dissimilar to Dunev’s – the 70-year old woman signed an agreement with MGA Services in July 2017. After years of disputed charges and attempts at cancellation, a separate company – Crown Crest Corporation – placed a $14,448 interest on Bonnick’s home title
The interests barred homeowners from selling, mortgaging or otherwise dealing with their properties without the suppliers' consent, or payment of the security interest, the claim states.
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