Can The Credit Union Keep My Car Title Till My Visa Card is Paid? – Shelley

“Dear Steve,

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.


Dear Shelley,

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.

Damon Day - Pro Debt Coach

Follow Me
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.
Steve Rhode
Follow Me

Comments are closed.