Can the Credit Union Refuse to Give Me My Car Title?


Dear Steve,

9 years ago I had two loans with the credit union and one of my cars was repo’d.

I have paid the other car off in full many years later and they won’t give me the title.

I am find handing over my car that is paid off. But now they are telling me that if I just turn the car into them they will then consider it and report it as another repo…. is that true or even legal? I paid it off.



Dear Brad,

It sounds like the issue you are running into is the credit union cross collateralization conundrum. Credit unions will hold the title of an asset until all loans are paid in full. So it sounds like until you resolve the issue with the other unpaid car loan you may find it difficult to get your title to the paid vehicle.

You may even lose the paid off car to satisfy the debt on the outstanding loan.

This process of cross collateralization< that credit unions use, make everything more problematic. [adinserter block="4"] [adinserter block="5"]

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