Waiver of cross-collateralization on auto loan at credit union
Posted: Tue Mar 13, 2012 2:52 pm
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I have a client who has both a credit card balance and a car loan at a
credit union.
I learned on this list serve about the issue of cross-collateralization
(which I think is a valid hyphen) and how they consider the car security
for both the car loan and the credit card loan. Accordingly, I have
always since negotiated waivers of the cross-collateralization clause to
reaffirm.
However, a member of this group has made an argument to me that since
the reaffirmation agreement only is for the amount of the car loan, that
they cannot bring in the credit card loan and must give the pink slip
once the car loan is repaid.
Even if the car loan is paid off I'm afraid they may still not give the
pink slip. The credit union, Wescom has not responded to my inquiries
on this.
QUESTION: Is it still a good idea to get a waiver of the
cross-collateralization agreement or failing that to redeem otherwise?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 6470
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I have a client who has both a credit card balance and a car loan at a credit union. I learned on this list serve about the issue of cross-collateralization (which I think is a valid hyphen) and how they consider the car security for both the car loan and the credit card loan. Accordingly, I have always since negotiated waivers of the cross-collateralization clause to reaffirm.
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