Get Out of Debt Guy - Steve Rhode

Three Out of Four Co-Signers Have to Pay Money on Loans

1-844-335-1967

Question:

Dear Steve,

In 2012 My ex girlfriend of 16.5 years needed a car she was unable to qualify for the loan by herself and was asked to sign so I did, big mistake but I lived with her and this was not unusual request.

Anyway about a year later we split up due to her cheating and she kept the car. I moved and forwarded my mail. I never received anything from the bank regarding issues and was unaware of the delinquency.

She moved to Texas from CA. The car was repossessed and I was not notified . I was not given a chance to take over payment or anything now this is on my credit files as charge off. I don’t understand how this was an oversight all my other pertinent mail from banks etc forwarded without notice so how come not this.

I have been searching about this matter and have not found out much about joint ownership. We were not married and I have a huge blemish now . I have no idea where my ex is either nor do i really want to. I would like this off my report as it is not fair i have never used that car as my own. I live in CA. Thanks

Can I get this off my report and should I have been notified by Chase Bank that car was in default and repossessed and sold.

Leah

Answer:

Dear Leah,

Unfortunately when you co-signed for the car you became 100 percent liable for the debt without any of the benefit.

As a liable party the status of the loan may be reported on your credit report and you may even be sued of the delinquent debt.

However, some state laws prohibit a lender from attempting to collect from the co-signer without first attempting to collect from the other party.

I am not aware of any requirement that the bank must notify you about the goings on of the loan.

“The lender is not required to notify you that the loan has become delinquent. It’s up to you to ensure the person you cosigned for is going to make the payment on time and in full. If they don’t, it’s going to damage your credit history and credit scores.” – Source

As the Attorney General of Minnesota says, “The bottom line is this: cosigning a loan is a generous act with potentially serious financial consequences. You generally should only cosign a loan if you have the ability and willingness to pay off the loan in the event the borrower defaults.”

The Federal Trade Commission reports, however, that three out of four cosigners end up paying money on cosigned loans.

Bottom line, there is nothing good about being a co-signer. Never do that again.


Big Hug!
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