Can the Credit Union Refuse to Give Me My Car Title?

Question:

Dear Steve,

9 years ago I had two loans with the credit union and one of my cars was repo’d.

I have paid the other car off in full many years later and they won’t give me the title.

I am find handing over my car that is paid off. But now they are telling me that if I just turn the car into them they will then consider it and report it as another repo…. is that true or even legal? I paid it off.

Brad

Answer:

Dear Brad,

It sounds like the issue you are running into is the credit union cross collateralization conundrum. Credit unions will hold the title of an asset until all loans are paid in full. So it sounds like until you resolve the issue with the other unpaid car loan you may find it difficult to get your title to the paid vehicle.

You may even lose the paid off car to satisfy the debt on the outstanding loan.

This process of cross collateralization< that credit unions use, make everything more problematic. Steve Rhode Get Out of Debt GuyTwitter, G+, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

The post Can the Credit Union Refuse to Give Me My Car Title? appeared first on Personal Finance Syndication Network.

About Damon Day

As a Debt Coach and a Financial Advocate, I have saved my clients Millions of Dollars by exposing the debt relief scams that other consumers fall victim to. I work directly for my clients to create custom debt relief strategies based on their own unique circumstances. Consumers who speak with me first, come out far ahead of those who don't, every single time. Guaranteed. +Damon Day