Jump to content

Sign in to follow this  

My Credit Union If I default on my credit card will they attach the balance to my auto loan

Recommended Posts

Can they demand full balance owed on auto loan because I defaulted on credit card? Or attach balance when auto is paid off?

Most credit union agreements have a "cross collateral clause". This means that if you default on anything they have a right to go after all deposit accounts and can assert a lien against the auto. They often have language in their agreements that give them the right to default the auto loan based on your default of another account at the same CU.


That said, how they handle the situation will vary from one CU to another. They can demand payment in full or repossess the vehicle. Will they do that is unknown.

Share this post

Link to post
Share on other sites

If you know you are going to default refi the car through someone else. ..get it out of their hands. ...then say screw the card if there are no other options

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Today's Birthdays

  • Member Statistics

    • Total Members
    • Most Online

    Newest Member

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information