Legal Question in Consumer Law in California

A year ago, I helped my now ex-girlfriend to finance a car purchase by letting her use my credit. According the bank, I’m the applicant and primary borrower (cause I have credit and income), and she was put on the loan agreement as the co-borrower. She has been making the monthly loan payment on a regular basis from her account (was never late). The insurance is just in her name. The registration states Kim M. OR Karin G. with the bank as the lien holder. We are no longer together, so I asked her to refi just in her name to get me off the loan. She said she’ll try to refi in her name but doesn’t know if she’ll qualify. She said she would turn over the car to me if she can’t refi, and I can then refi in my name. However, if that scenario happens, she wants me to pay her back the 12 monthly payment she made for the car over the last year. If the car ultimately falls on me, do I have to reimburse her for the payments made? Thanks.

Asked on 3/17/16, 2:06 pm

2 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

I don't see any legal reason why you would have to pay her back if you took the car back. She's had the use of the car all this time.

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Answered on 3/18/16, 6:15 am
David Rausa D.J. Rausa, Attorney at Law

If she gets the vehicle refinanced, then it will not be an issue. Additionally, as Mr. Starrett points out, she had the use of the vehicle for the time in which she made payments, so there is no obligation on your part to pay her for that time. Good Luck.

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Answered on 3/18/16, 9:38 am

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