Problem
Recovering the Borrowed Funds: The Basket Case
As a collection agent working in Everyday Bank's collection department, you have seen some very strange situations but none of them is quite as odd as the case of Henrietta Basket. About two years ago, Mrs. Basket borrowed $20,000 to purchase a used cargo van, which she planned to use for her part-time, flower arranging business. At the time the loan was granted, Henrietta was also working full time at an amusement park about 30 miles from the house she lived in with her husband Wicker, who worked as a blackjack dealer at the local casino. The loan was signed by both Henrietta and Wicker, and a chattel mortgage was taken over the cargo van, which was the collateral for the loan. The loan application stated that the couple had several credit cards with no balances (none of them were at Everyday Bank) and a small mortgage on the home with another bank. The credit bureau indicated that their credit was excellent. About 3 months ago, the couple began missing payments on the loan, and all attempts to contact them by phone, e-mail, or by letter were unsuccessful. The only business they had with Everyday Bank was the loan and an account the loan payments came out of. You reviewed the history of the loan payment account and noted that about 1 year ago the couple had a balance of $1,000 in the account, at which point a cheque for $5,000 was deposited and the only other transactions were the monthly withdrawals for loan payments until the money ran out.
You contacted both employers and learned that both Henrietta and Wicker left their jobs a year ago and had not been seen since. Henrietta's former employer asked you to let him know if you find Henrietta because she owes him money as it cost him $5,000 to put a new transmission in the cargo van, she sold him before she quit. On your lunch hour, you drove out to the house the couple lived in and found it abandoned. The door was unlocked, so you went inside. It was evident to you that the house had been used for a cannabis growing operation, and the interior was totally destroyed. From your investigation, you realize that Mr. and Mrs. Basket have probably left the country with the funds they have obtained from the sale of the cannabis growing operation, so attempting to locate them will be impossible.
There are several activities you could do that would result in Everyday Bank recovering part or all of the funds you lent to the couple. Based on the details noted above and the fact that you know you will not be able to find the Baskets, explain 3 different things you can do that may result in Everyday Bank quickly obtaining some or all of the money that the Baskets owe the bank.