Bank threatning to repo when payment not late.

[Silver26]

Just curious if this is even possible.. The past 2 months I have been going into my old CU to make the car payment in cash. I have never been late or missed a payment on this loan. The last 2 times I've gone in to make the payment they have had to call the risk management dept and get my payment cleared that way.

This time the Bank manager helped me and initially refused to take my payment saying I had to make a payment on the credit card that I have with them first and then I can make the car payment. I said No that's not true if i come in to make a payment on my car loan you must accept the payment on the loan. He said well I will accept it but were going to repo your car because of the credit card you haven't paid on. My attorney told me that as long as I continue to make payments on the car loan that im fine and they cannot repo the car and i will be able to reaffirm the loan without issue.( he deals with this CU on a daily basis and i guess is pretty well known with their BK Dept) I just want to check with you guys and make sure that's correct. Thanks sorry its long..

[lrprn]

A question first, Silver....have you already filed for bankruptcy? If you have, is your case discharged and closed?

[justbroke]

Interesting. Sounds like the cross-collaterized the car with the credit card. Hmmm...

This means that the credit card IS the car loan. If you don't pay the credit card, it's like not paying the car loan. You need to, somehow, remove the cross-collateralization.

This (cross-collateralization) seems to only be a problem with credit unions.

[StartingOver08]

I am sure your attorney does this anyway because he works with the CU regularly - but just make sure the cross-collateralization is dropped in the reaffirmation agreement for the car that is signed by you and the CU. Make sure you check the balance - sometimes the CU likes to add 'extra' to the car balance in the reaff

[Silver26]

we are waiting to file until after we get our taxes. I wont reaffirm the car if they CC it. My attorney has stated multiple times while they try CC in the end they accept the reaffirmation of just the vehicle. I'm just concerned there going to repo it before I even get to that point. It doesn't make sense to me for them to remove their only bargaining chip and take a 25+K loss rather then just a 7k loss, but I don't really know how banks work.