Cross colateral loan help ??

What is the name of your state?What is the name of your state? California

I have an auto loan and credit card through my credit union.

They suspended my checking and savings.

I just traded my car in and secured a new loan with a different finance company. So now im driving my new car and the dealership sent a check to my credit union, the credit union called last night saying that because I have a visa card with them that is outstanding and in collections that they will not release the cars title to the dealership. Can they do this?
So what will happen, I already have my new car about 6k miles already on it, and am making my first auto loan payment in a week.
I have signed all new loan docs, and released liability on the old vehicle to the DMV. The Debit is about 2000 but I dont have that money to send the credit union. I asked them for signed documents authorizing the reciept of my visa and my auto loan, but they have yet to send me them. I did all the signing by fax...so im not sure if they have my signature on file...what shoudl I do and what may happen or be the outcome of all this ??

[Ladynred]

Yes, they can do it and unfortunately you are likely screwed.
You need to go thru the documentation from the credit union for your original loan and for the VISA and checking/savings accounts. On the car loan, you are looking for cross-collateralization verbage. If they do not SPECIFICALLY include that verbage, then they can not cross-collateralize that loan with anything else.

Read this article, then go thru your papers:
[url]http://www.cunamutual.com/cmg/freeFormDetail/0%2C1248%2C6684%2C00.html[/url]