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navy federal cross collateralization possible issue

Aboveitall
New Member

navy federal cross collateralization possible issue

Not sure if this is the right area to post this but here we go....

I had a personal loan from nfcu that fail delinquent as well as major credit card debt with them.

They have sent me numerous letters to pay off in full which i just can’t afford to right now.

I also have a car loan with them that I never missed a payment on and only have about five payment left.

Now that we are coming to this point i have a few questions:

Will nfcu repo the car after i finish paying?

I see a lot of people said nfcu usually add your other debt to your car loan but they haven’t done that to me.

Has anyone been in this situation and easily received the car loan?

I don’t want to fall and request it because I fell that will have them look into my account.

When do they normally exercise the navy federal cross collateralization clause?

Is it random or happens to everyone with debt?

Is there a way out of this navy federal cross collateralization clause without filing bankruptcy?
Message 1 of 7
6 REPLIES 6
RobertEG
Legendary Contributor

Re: navy federal cross collateralization possible issue

Each of your accounts represents its own, separate contracted debt.

Thje vehicle is only subject to repossession based on your contract as securement of your auto loan.

 

They cannot simply attach assets that are securing another debt with them without first obtaining an order by a court that permits them to attach assets or garnish pay.  That would require that they first obtain a judgment on either the personal loan or the credit card debt, and then additionally motion the court for attachment of assets or garnishment of pay as a specific, court ordered payment towards the judgent debt.

 

Since they do not yet have a judgment on either the personal loan or the credit card debt, then any attachment of assets or garnishment of pay to force payment of those debts would be far down the winding road.

Message 2 of 7
Saeren
Mega Contributor

Re: navy federal cross collateralization possible issue

They actually can and do cross-collateralize, you agree to it in the documents. 

 

The way I understand it is that once you pay off the car, they will slap on the rest of the outstanding debts and you will be required to pay that in order to get the title and in my limited research it does look like they have been known to repossess vehicles at times. 





Message 3 of 7
ls2016
Frequent Contributor

At Re: navy federal cross collateralization possible issue

I have a friend that defaulted on a $15k credit card with NFCU, but paid off her NFCU car loan during the same time. She filed bankruptcy that included the credit card debt, kept her car, but is unable to get the title, which NFCU has. It has been over 4 years now and they still refuse to release the title. Luckily, the car is not worth aynthing. Anyway...I'm just sharing my friend's experience.
Good Luck!
Current FICO 8s: Ex 726, Tu 746, Eq 716
Current FICO 9s: Ex 748, Tu ?? Eq 725
Total TLs: $160,000
32 (30-60 day) mortgage lates remain
Message 4 of 7
Aboveitall
New Member

Re: At Re: navy federal cross collateralization possible issue

When did NFCU let her know they was not releasing the title?

Message 5 of 7
gdale6
Moderator

Re: At Re: navy federal cross collateralization possible issue


@ls2016 wrote:
I have a friend that defaulted on a $15k credit card with NFCU, but paid off her NFCU car loan during the same time. She filed bankruptcy that included the credit card debt, kept her car, but is unable to get the title, which NFCU has. It has been over 4 years now and they still refuse to release the title. Luckily, the car is not worth aynthing. Anyway...I'm just sharing my friend's experience.
Good Luck!

Well this is actionable as a BK was filed but since its not worth much when it dies your friend should call and demand that they remove their property from theirs before they file suit. I bet the title comes quickly.

Message 6 of 7
simplegirl
Valued Contributor

Re: At Re: navy federal cross collateralization possible issue

Yes they definitely repo cars if you stop paying at anytime they will take it without you knowing. They repoed my car 2 days after my birthday and after i made a payment since i was 60 days behind.








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