Q: A bank is holding my car title as collateral for a separate car loan that they charged off 5 years ago.

A: Likely yes. This is called cross-collateralization. In many secured loans, the collateral is pledged not only for the purchase money loan to buy the collateral (in your case, a car) but also for any other loan made by the lender.

A: It's understandable that you're concerned about your situation. However, it's important to know that a bank cannot typically hold your car title as collateral for a separate loan unless it's explicitly outlined in the terms of the loan agreement you signed. In most cases, collateral is specific to the loan it's associated with, meaning the title for one vehicle shouldn't be held as collateral for a loan on a different vehicle.

If the bank is insisting on holding your car title for a separate loan that's been charged off, it's advisable to carefully review the terms of both loans you've had with them. If there's no mention of using one vehicle's title as collateral for another loan, you may have grounds to challenge their decision. You might want to seek legal advice or consult consumer protection agencies to understand your rights and options in this situation.

Remember to keep communication with the bank clear and document all interactions, including dates, names of representatives, and details of the conversation. Being informed about your rights and the terms of your loans will empower you to advocate for yourself effectively in resolving this matter.