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traviscantu · Jan 26, 2010, 07:19 PM

Can my credit union repo my car because I am several (3 or 4) months delinquent on my credit card from the same credit union? I have been on time on my car payment and they are refusing to post my car payment to my car loan because I am delinquent on my credit card. They are threatening to repo my car even though I have not been late on my car payment at all. The credit card is a unsecured loan, so how can they come after my car?

Fr_Chuck · Jan 26, 2010, 07:34 PM

If part of the rules of the loan is if, any payment received goes to the oldest outstanding debt first.

You will have to read and re-read the fine print on the loan papers of both loans. And go in and ask them to show you in writing how they can do this.

Iknowalotofstuff · Feb 2, 2010, 10:30 PM

Credit Unions are notorious for what is know as the "member in good standing" clause. Default on any product such as the credit card could result in this clause being triggered. They could then make a demand that the car loan and the credit card balance be paid in full. If the debts are not paid or the accounts brought into good standing, the car could be repossessed. Credit Unions use this kind of leverage to collect problem debts.

OaklandJohn · Feb 10, 2010, 12:19 AM

No bro I don't think so. As long as you pay your car and can prove it you should be fine and they can't take it. Don't let them threaten you and just tell them your having hard times. I had my car repoed but I was not paying it that's why. Just so you know if your credit does suck, I ended up going to Ycreditrepair.com and bought this package for like 30$. Well worth it! Removed my repo and other stuff. Just that if you use it and remove your items don't do it again. I removed all my negative items and then now just got 1 card. That's IT!

Iknowalotofstuff · Feb 12, 2010, 06:42 AM

You would be surprised at the number of clients who have had to deal with this "member in good standing" clause. I had a client who could not pay an unsecured loan with a credit union that held the mortgage on his home. They threatened to call his up to date mortgage if he did not bring his loan into good standing,

You do not disclose your location. But this happens in Ontario Canada. If you are a CU member anywhere, check this out.

DownUnder · Feb 12, 2010, 10:46 AM

Its simple. As Fr_Chuck stated above just go in and ask to see the paper work on the loans! You may have not read the very fine print. I know that some credit unions will not cash your payroll check even if you are a member if you are late on a loan with out takeing what you owe first,It happened to a friend of mine she was two days late on making her
Credit union credit card payment and when she went to cash her check they told her in order to cash her check they would have to take her cc
Payment first,when she inquired inside about this, they showed her it was on the cc agreement she signed
And she was not even aware that she had signed this. So it pays to make sure you understand everything before signing on the dotted line.