Hello all,
I recently filed bk which included about $39k cc debt with NFCU and I also have an auto loan with them. My attorney warned me that navy federal was notorious for cross collateralization and how they will attempt to hold my title even though the cc debt will be discharged. I checked my promissory note and it doesn't state anything specifically about the cc's being tied to my auto loan. I intend on keeping my car and paying it off but now I am starting to second guess that if I cannot obtain my title. However, prior to filing bk I wrote navy fed on the emessage portal and received this response: "Thank you for using Navy Federal's eMessaging Service. In most situations, a title will be released within 10 business days of Navy Federal receiving the payoff and can take up to 7 to 10 business days for delivery of the title or lien release. If the title is electronic or other conditions apply, the email or the mailed letter will detail the process of getting the physical title and ensuring that the lien release is properly recorded. The stateâ s processing requirements may also affect the timeline, as some states process titles electronically, while others don't.
We recommend to contact your local titling or registration authority for more information about their processes and timelines.
Additionally, we do not offer cross collateralization on Consumer loans. Only one piece of collateral can be on a loan at a time. If you have further questions, please let us know."
With me having this in writing (made sure to download the correspondence) can I use it to obtain my title if they try to hold it after the loan is paid off? I know the message says clear as day that they do not offer cross collateralization but having worked for financial institutions, I'm having trust issues. Has anyone successfully obtained their title after involving them in bk?
