Can credit union withhold the title of a paid off car because of a loan that is not current and has a cross-collateral agreement?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can credit union withhold the title of a paid off car because of a loan that is not current and has a cross-collateral agreement?

I have a personal and a car loan with the bank. I am current on my car loan, but late on my personal debt. My bank is threatening to reposes the car, even though I am current on it, until I am current on my loan. They also said they won’t give me the title until my personal loan is paid off. Is it legal?

Asked on May 31, 2012 under Bankruptcy Law, Massachusetts

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

One needs to read both agreement to see how they interact with eachother.  I think that you may ahve used the equity in the car as collateral for the personal loan.  And if they are so intertwined then maybe you are stuck.  But I might contact the state department that monitors the credit union (like the state banking department) or the state attorney general's office.  And bring the agreements to an attorney to read.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption