Auto Loans Truth in Lending Violation

[keithr36]

My Credit Union made many errors on the TIL total amount was incorrect by a significant amount for my auto loan. they also claimed to have security on my vehicle from the credit card and line of credit agreement i previously had with them. I want to sue them for violating the TIL act and for claiming to secure my vehicle. It was a refinance in Aug 2007, filed a complaint with the NCUA earlier this year and the credit union admitted to its mistake but then tried to insist they could hold my title until mastercards and line of credit was paid off.

 

[Theresagail]

They can-- this is in your membership agreement (the original membership card) you have with the credit union. it is a cross collateralization clause--" any and all accounts now and in the future are in this clause.

 

[keithr36]

They can. But is it legal?! I dont think so. Thats what I'm trying to be sure of. when i signed a vehicle loan it was not my intent or was it clear that my unsecured line of credit or credit cards had a cross collateral clause. In addition, the was the cross collateral clause sufficiently disclosed and if the credit union didnt put a lien on my truck when I signed the credit cards or line of credit, can they do it after the fact without going to court?

 

[Theresagail]

The loan contract you signed has this in the fine print -- the member ship agreement and the actual loan agreement- Yes it is legal, Unless that clause is not in there but almost every credit union has that language in the loan contracts. It states any loans now or in the future-- Credit cards etc are open ended lines of credit -- they can go on for ever-- so yes this clause includes them. You need to look @ the loan documents again and read all of that fine print on the back and see what it says.