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!


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 to find one.

Please post your responses and follow-up messages to me on this in the comments section below.


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2 thoughts on “Can My Credit Union Repossess My Car If I’m Late On Another Loan? – Colette”

  1. I have the title to my car that was paidoff 3 months ago to a credit union. I received a letter today from the same credit union saying they can repossess my car for cross collateralized on a credit card thats pass due 3 months… can they do that even if I the title?

    • Cross collateralization is a major problem with credit unions. People think they are all innocent but this one tool, makes them dangerous at times.

      If the car is pledged as collateral as security against all loans, which would not surprise me, the car might be able to be taken.

      But there is so much that needs to be known first. The state you live in and the actual agreement might not support this.

      How much is this credit card debt with the CU?


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