JUBILEE MITSUBISHI/MEMBERS CHOICE CTFCU JUBILEE SUBARU 2007 Suzuki Forenza Internet

When you signed the note you actually pledged to repay the loan AND you agreed that if you defaulted then the balance could be added to any other loan you have with the same CU. In fact, you won't get the title to the payoff of your car until the entire balance is paid (your vehicle plus the defaulted balance). It's called cross-collateralizing.

If you had a mortgage and no other car loan, they would have added it to the loan on the mortgage.  Many people fail to read the entire loan agreement, but it's in there. Even if you go back and read your terms and conditions, the cross collateralizing is specified between all of your loan accounts AND your deposit accounts. In other words, lets say that you have a savings account (share account) with your CU and you default and never bring the payments current. In addition to repossessing the car, they can take the funds out of your savings to satisfy the loan. This is the danger of default with a CU loan.

You co-signed the loan.  As such you were on the hook for that loan.  You already have a loan with the SAME company.  Umm, what exactly did you expect?  Did you actually think the balance was going to magically disappear?  Perhaps you should have taught your daughter to pay her bills on time!