What happens if a debtor has paid 60% of the principal amount in a consumer loan?

In the context of secured transactions, particularly relating to consumer loans, the principle of strict foreclosure comes into play when assessing the rights of both the debtor and creditor. If a debtor has paid a substantial portion of a consumer loan, such as 60% of the principal amount, this can significantly influence the creditor's ability to enforce their rights regarding the collateral.

For consumer loans, certain protections are often in place to prevent a creditor from seizing the collateral without due process, especially after the debtor has already made considerable payments. Strict foreclosure, which would allow a creditor to forego the usual procedure of selling the collateral and instead keep it, typically requires the debtor's consent in cases where a substantial amount of the loan has been paid. If the debtor has paid 60%, they retain certain rights, and unless they have waived those rights, strict foreclosure cannot occur. This is designed to protect consumers from losing collateral without a proper and fair procedure.

Therefore, the correct answer reflects that without a waiver from the debtor, no strict foreclosure is permissible, ensuring that the debtor's interests are safeguarded after making significant repayment progress.