Posted on: 03rd Jan, 2012 02:06 am
I had an auto loan at my credit union with which I also have a Visa card. I lost my job and have fallen behind my credit card payments. However, somehow I managed to pay off my auto loan. But now the credit union refuses to return the title to the auto because I am still behind on the visa card. Can they be forced to return the title in spite of the fact that I still owe on the Visa card?
As far as I can understand, you should try and set up a payment plan with the credit union so that you will be able to pay off the defaulted amount quickly. Meanwhile, you should also negotiate with them so that they give you the car title back.
Unless the two debts were tied together, I do not see how that is legal. Even if you have one primary account with the CU and you have several different loans, credit cards, they should not intertwine, since the auto was most likely an installment loan. On installments, you pay over time, then the debt is now paid in full, and title to be transferred. Contact a local attorney, they should be able to consult with you for free over phone. Good luck!
Hello Venom,
The loan has to be reaffirmed, paid as agreed or settled according to the terms of the lender.If none of the above apply, the credit union is still a lien holder on the title and the title will not be cleared until that is done.
If the loan was reaffirmed and paid according to the terms the credit union has to release the title within a reasonable amount of time. The time limit depends upon how long it takes the payoff transaction to be finalized, for example a check or money order clearing, and so forth.
:idea:
The loan has to be reaffirmed, paid as agreed or settled according to the terms of the lender.If none of the above apply, the credit union is still a lien holder on the title and the title will not be cleared until that is done.
If the loan was reaffirmed and paid according to the terms the credit union has to release the title within a reasonable amount of time. The time limit depends upon how long it takes the payoff transaction to be finalized, for example a check or money order clearing, and so forth.
:idea:
Venom, the title to your vehicle is relevant only to the automobile loan. You'd be wise to contact the National Credit Union Administration (ncua(dot)gov) and register your complaint about the held-hostage state of your auto title.
The two accounts (credit card/loan) are separate and distinct, and you did not give them permission to retain the lien on the automobile in the event of your default on the credit card.
If they were holding on to your savings account as a result of your late status, that'd be one thing - that's allowable. But this is (to me) a breach of your loan contract, and if the NCUA can't solve this (and they ought to be able to quickly), then you may want to discuss this with legal counsel and move on from there.
I apologize for some of the "advice" you've received here, which is so far off-base as to be utterly useless.
The two accounts (credit card/loan) are separate and distinct, and you did not give them permission to retain the lien on the automobile in the event of your default on the credit card.
If they were holding on to your savings account as a result of your late status, that'd be one thing - that's allowable. But this is (to me) a breach of your loan contract, and if the NCUA can't solve this (and they ought to be able to quickly), then you may want to discuss this with legal counsel and move on from there.
I apologize for some of the "advice" you've received here, which is so far off-base as to be utterly useless.
>>I apologize for some of the "advice" you've received here, which is so far off-base as to be utterly useless.
Amen!
Amen!
It seems to be a common thread in our discussions; that folk who have no clue about topics, but who are convinced that their chatter is valuable...will add to the confusion among people.
I hope not a lot of people have been unduly influenced and caused to lose money, time and effort resulting from these inane commentaries.
I hope not a lot of people have been unduly influenced and caused to lose money, time and effort resulting from these inane commentaries.