Cross Collateral question

[Anonymous]

Hi everyone!

I recently paid off my auto load with Penfed,  When I inquired about not receiving the title, I was told I had an outstanding debt with them. 

I had a CC with Penfed that was charged off several years ago and the debt was sold to a 3rd party.  I was told I had to pay that debt off to receive the title.   After researching cross collateralization,  this is used by credit unions to "guarantee" the loan.   The amount charged off is greater than the car is worth.  My question is, "can" they reposess?   I read that my title could sit in limbo for eternity.   Has anybody been in this situation?   If they sold the debt,  are they still legally be the leinholder?   Thank you in advance for any help with this!

[Brian_Earl_Spilner]

It's more akin to filing another lein after the car was paid off. Since I've never had to deal with it, I can't really comment, but if they were to put another lein on the vehicle, they could technically seize it or use the courts to force you to hand it over.

[Brian_Earl_Spilner]

As for whether they have a right to it if they sold the debt, I'm not sure how that would be possible. They would no longer own the debt. But, if all they did was charge it off, I assume that they can still lay claim. @RobertEG would probably be the one to ask.