I took loan out to purchase truck paid it off. I was the only signer on this loan. Then husband took loan out for a camper that I apparently signed on. He decided to let camper go back after he lost job of 22 years. I called credit union about title of the truck and was informed they were holding it until loan on camper was taken care of the amount is $4000.00. These were two different loans. Is this legal? I can not afford to pay the money toward camper or we would still have it... I was told that any loans with credit unions are connected and if one goes bad they can hold other....? This in in the state of Mississippi...
If you did indeed sign the loan papers for the camper you might be held responsible. You need to look at the language in the contract you signed. It is very common for credit unions to include language in their contracts that give them a security interest in other items.
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Unfortunately, the answer is likely yes. Credit Unions are notorious for "cross-collateralization". In other words, the collateral for each and every loan guarantees the payments of the other loans. In your case, both the camper loan and the truck loan were secured by the truck. Likewise, the camper loan and the truck loan were secured by the camper.
Nonetheless, this might not have been the practice in your situation. I encourage you to read the loan documents or meet with counsel and have them take a quick look. If the loan is , as I assume, cross-collateralized, I encourage you to contact the CU and see if there is a lesser amount they might be willing to accept as a payoff (release of the lien) and try to get the truck refinanced.
Yes. If you reaffirmed this debt- they cross collateralized the vehicle and other debt. They would have the right to do so based on your original agreement. Credit unions get special treatment.
The problem with doing business with credit unions is that every one of them requires your deposit account and every loan you have with them to be tied together as if it is a single transaction. It is part of the way credit unions are structured as financial institutions, nothing personal. So a good rule of thumb if you borrow from a credit union is to not take out more than one loan from a CU at a time. Hope this perspective helps!
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