Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions.
While I haven't seen your paperwork, the answer is likely yes. Credit Union loan agreements almost always have a cross-collateralization clause. Simply put, it means that the collateral for one account or loan (such as your car), also becomes collateral for any other loan or account with the Credit Union. In other words, if you were to refuse to pay the balance due on the overdrawn account, then they can repossess the car just as if you hadn't paid the car loan itself. Accordingly, they would not need to give you the title while the checking account is overdrawn.
I am truly sorry that my answer may be bad news for you, but please understand that it would be unfair to you (and unprofessional of me) to provide you with anything less than an honest response. However, if your concerns were not satisfactorily addressed, then please let me know, and I will be happy to clarify my answer.
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