Latest Posts
Home > Ask The Get Out of Debt Experts > My Credit Union Won’t Give Me My Car Title Because I Have a Credit Card Balance

My Credit Union Won’t Give Me My Car Title Because I Have a Credit Card Balance

“Dear Steve,

Worked for this credit union who in the past had federal investigators in when there were bogus loans. Worked there for 15 yrs.

I paid my car loan off with my credit union but they won’t give me the title. I owe on a visa account there and they are pulling the cross collateral trick.

Thing is I worked there and they classify all the visa and mastercard loans to the feds as “unsecured”.

How can they do this when “technically” they are when using the cross collateral line?

When I got the visa is was listed as unsecured in the file because I saw the approval from the VP of lending.


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 Rhonda,

The cross collateralization trap is a nasty one. But it seems it would be more of a accountholder agreement issue then a bank reporting function.

My Credit Union Wont Give Me My Car Title Because I Have a Credit Card BalanceIf you feel the credit union is being unfair or breaking the law and they are a federally chartered credit union then you could file a complaint with the Office of Consumer Protection at NCUA, click here.

State-chartered credit unions are regulated at the state level.

One way to break the cross collateral in some cases would be with bankruptcy. But in your case the car is paid for and the unsecured loan is using the car title as collateral. If you discharged the unsecured loan in bankruptcy the credit union could ask for the car as collateral.

If you were still maxed out on the car loan and the credit union credit card debt you could include both in bankruptcy and discharge the credit card debt and reaffirm the car loan and pay that back.

It seems the best approach at this point would be to either negotiate a settlement with the credit union or get on a payment plan to satisfy the credit card debt. Otherwise it seems your options leave you exposed to losing the car in a bankruptcy.

I wish I had better news but this credit union cross collateral issue is just some nasty crap that catches many.

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

Big Hug!

My Credit Union Wont Give Me My Car Title Because I Have a Credit Card Balance
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.

My Credit Union Won't Give Me My Car Title Because I Have a Credit Card Balance 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.

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.


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.