I had a car loan through a credit union in Florida where I live..it was paid off in March of 2010…I also had a Visa through them, that went into default and was charged off…They refuse to release the car title..they sent the visa out to a collection agency, and the credit union said they will not release the title of the car until the visa bill is paid
Can they repo my paid car, for this unpaid visa bill?
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Unfortunately it is absolutely true they can hold your car title hostage. Credit unions practice something called cross-collateralization where your assets, like the car, serve as collateral for your credit card account or other loans. If the other accounts are not in good standing they will hold your car title till they are.
It’s a very interesting practice since it’s not something you’d imagine that the local friendly credit union would do. But they do.
I would be surprised if they actually repoed your car but they will hold on to the title.
Please post your responses and follow-up messages to me on this in the comments section below.
- Strategic Financial Solutions and Ryan Sasson Stumble and Get Pounded - February 13, 2024
- These Emotions Stop You From Getting Out of Debt - January 11, 2024
- 16 Common Myths About Getting Out of Debt That Everyone Gets Wrong - January 8, 2024