My question involves a banking matter in the State of: Florida
My credit union is threatening repossession of a car. There are two debts in question. The car was purchased through a personal loan secured by the car itself. The car loan is current. The credit card issued by the same credit union is two payments behind. I have been told by their collections office, both verbally and by letter, that the car may be repossessed because credit union laws allow cross-collateralization. Does anyone know if this is legal? I have been told that this not legal but the credit union assures me that they have the right. I have read the language of the credit card contract and it is confusing to me. The credit card paperwork was signed a couple of years prior to the personal loan for the car. I have gone all through the personal loan contract and cannot find any language referring to cross-collateralization. Need help!