Can a credit union hold the title of your vehicle if the vehicle is paid off but your account is negative?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a credit union hold the title of your vehicle if the vehicle is paid off but your account is negative?

I had a account and loan through a credit union. I’m trying to get the title to my vehicle, but they want me to pay my account to and will not give me my exact payoff on the vehicle. The account wasn’t collateral.

Asked on June 23, 2011 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The answer, based on what you write would be no--unless there is some other agreement you have executed with them which authorizes this in some way; for example, if your account agreement states that if you are in arrears, the credit union has the right to not release any collateral or property used as security for any other loans with or through it. However, absent some authority in something you signed or agreed to, it would seem that once the vehicle loan is itself paid off, the credit union has no right to hold title to the vehicle; the fact that you owe them money for an unrelated reason would not give them that right. Check all your agreements and ask them to point to the agreement, term, etc. which they believe gives them the authority to do this.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption