fbpx

Can My Credit Union Repossess My Car If I’m Late On Another Loan? – Colette

“Dear Steve,

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!

Colette”

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Colette,

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.

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
See also  Should My Daughter Let the Title Loan Company Repo Her Car?

Comments are closed.