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Cross Collaterize???


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I got a "final demand" for payment from my credit union on a disputed account & at the bottom is this statement: PLEASE UNDERSTAND THAT YOUR CREDIT UNION DOES CROSS COLLATERIZE.

:?: What the heck does that mean and more importantly how can it impact me? :?:

Thanks -- Washington

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Cross-collateralization usually means that whatever collateral secures a loan will secure future loans as well. For example, if you take out an auto loan and later get a mortgage, the car may become security for the house as well. This is a vast generalization, however. If you are concerned about what they mean with respect to your specific situation, give them a call.

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