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!
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.