Legal Question in Credit and Debt Law in Florida

Can a credit union hold my car title for not paying on another account?

Hello,

I just finished paying off my Car Loan to my Credit Union. I had a really bad run of terrible job markets and was unable to pay on my Visa Card I also had with the credit union and they ended up charging it off. Well I pay off my car and they say they will not send me the title to my car unless I pay off the amount that was charged off on the credit card.

Furthermore, when I pay it off, it will not reverse the charge off, it will just show a charge off with a zero balance, so this won't even help my credit one bit. I asked for them to send me a copy of both contracts. I want to see where this is stated that they can do this.

Is it legal for them to withhold my car title because I didn't pay off a credit card with them?

Thank you!


Asked on 3/13/03, 6:36 pm

1 Answer from Attorneys
George Savage George S. Savage, P.A.

Re: Can a credit union hold my car title for not paying on another account?

The credit union may claim that they have a cross default provision so that since you defaulted on the credit card, they can hold the title. However, this doesn't seem likely or probable. You paid off the car and they must give you the title. Send them a letter demanding same and say you may need to seek an attorney if they do not correct immediately.

Best of luck.

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Answered on 3/14/03, 11:28 am


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