Yes, it's legal but they're ethics suck if they did't inform you of the debt prior to loaning the money for the purchase. Credit union managers are sometimes lower than used car salesmen. They should have added the charge off into the payemnts for the vehicle. Check your contract to see when the title must be released, if it says that the title will be released within a certain number of days after the last scheduled payment and has nothing about prvious debts, you can file a complaint with the state agency that regulates credit unions. Send the same letter to the credit union's board of directors. The loan officer should have informed you of the old debt and its consolidation into the car loan and the amount should have been added into the loan documents,
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