A while back i used a nfcu personal w/ collateral loan to import an older vehicle and used the loan for the purchase of the vehicle (12k). The title process was incredibly delayed and the whole thing a huge mess from which i learned greatly from but during this process i recieved notification that nfcu raised the apr on my loan a few perfect converting to a regular personal loan since title wasnt recieved yet for collateral reasons. I didnt think anything of it because the jump in APR wasnt enough to bother me and i planned on paying off very soon anyways. Long story short i ran into a need for some money and the vehicle didnt work as planned so since the loan was converted i sold the vehicle. 6k of the selling price was paid on the loan itself and 6k used for other things needed at the time. This makes the nfcu loan paid for the next 2 years with no payment due. I called nfcu regarding the situation and they are still asking about the title even though the loan was converted up. They claim theres no legal recourse or anything involved they just said they would lower the apr if they did in fact have a title. Im assuming the only time collateral comes into play is if the loan is defaulted and no payment is made but im obviously not an expert at all. The loan was for 5 years and i plan to finish paying off in 8-9 months i just want to hear from someone more experienced if what i did was illegal in any way or if i should be worried about any issues from the situation.
Thanks!
