I Co-Signed for My Daughter’s Car That Was Repoed. But the Lender Won’t Accept a Settlement. – Carmen

“Dear Steve,

I co-signed for my daughters car loan. She lost her employment at almost the same time I lost mine. The company called me a I returned the car back to them.

After that I called to settle the account and they ignore all the letters, faxes and telephone calls.

They want to settle for $9000.00. I do not have kind of money. My daughter purchase the car for $13,000.00 and pay for 2 years. They sold the car. Now they want to charge $15,000.00 for the balance. This is a rip off.

Now I work for the government and I need to settle the account. What I can do..? I am ready to take a plane to FL to resolve the matter.

What are my options? I told them we can give $1000.00 down and pay $300.00 a month. That’s the best we can do. We do not make money like before.

What I can do if they do not want to settle. I need options.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.


Dear Carmen,

I’d need some additional information to figure out if the $15,000 demanded is reasonable or not. It sounds like they sold the car at an auction and received very little for it and they have added on some additional fees and charges as well to bring the balance claimed up to $15,000.

There is no requirement for them to settle. A settlement occurs when the creditor and debtor come to a mutually agreeable resolution. It does not sound like you’ve reached an agreement.

Your options are:

  1. If you file bankruptcy it will break your obligation to repay.
  2. Come to an agreement for an acceptable repayment plan.
  3. Do nothing and hope they don’t sue you and go for a wage garnishment.
  4. Wait, save up money and offer them a settlement at a later date.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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