Latest Posts
Home > Ask The Get Out of Debt Experts > Can My Credit Union Repossess My Car If I’m Late On Another Loan? – Colette

Can My Credit Union Repossess My Car If I’m Late On Another Loan? – Colette

“Dear Steve,

I have a personal loan ( which is 3 months past due) and an auto loan , which is current, with the same credit union. Thay are now saying that the personal (signature) loan is cross-collateralized, and the want to repossess the car. I don’t remember agreeing to cross-collateralization – the loan was made in New York State, and I am currently living in Florida. Can the car be repossessed while it is in Florida? Please help!

Colette”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Colette,

Most likely the answer is they can.

People always give credit unions the warm and fuzzy award because they are credit unions but the cross-collateralization problem is just so terrible.

Generally what I see is this problem going the other way, where people pay off their car but can’t get the title to it because they have a balance on a credit card with the same credit union.

If you feel the actions of the credit union are in error, I would contact a local lawyer in your area that specializes in consumer issues. You can use NACA.net to find one.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

Can My Credit Union Repossess My Car If Im Late On Another Loan?   Colette
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Can My Credit Union Repossess My Car If I'm Late On Another Loan? - Colette by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • marbella

    I have the title to my car that was paidoff 3 months ago to a credit union. I received a letter today from the same credit union saying they can repossess my car for cross collateralized on a credit card thats pass due 3 months… can they do that even if I the title?

    • http://GetOutOfDebt.org Steve Rhode

      Cross collateralization is a major problem with credit unions. People think they are all innocent but this one tool, makes them dangerous at times.

      If the car is pledged as collateral as security against all loans, which would not surprise me, the car might be able to be taken.

      But there is so much that needs to be known first. The state you live in and the actual agreement might not support this.

      How much is this credit card debt with the CU?

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.