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Bank Refuses to Release Vehicle Title

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dawn1208

Junior Member
What is the name of your state? AZ

When living in South Dakota I took out a loan for a truck and also opened a credit card account with a locally owned bank.

Now that the truck is paid off they are refusing to release the truck title until the credit card is paid in full. Is this legal???
 


Who's Liable?

Senior Member
What is the name of your state? AZ

When living in South Dakota I took out a loan for a truck and also opened a credit card account with a locally owned bank.

Now that the truck is paid off they are refusing to release the truck title until the credit card is paid in full. Is this legal???
Yes, it's in the small print of your contract. Most small banks, and credit unions use this as a second layer of protection. If you were to default on your credit cards, they would have the vehicle as an asset they could sell to off-set the default.

I believe it's called "cross collateralization" which is why one should separate banks for loans.
 

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