cosigning on a loan
I had cosigned on a car loan for my son. He couldn't make the payments, so I had an individual take over the payments for the car. Crown Capital Financing did the financing, but what I didn't know is that I still am on the loan, along with my son. The person (I don't know him) that took over the payments, filled out a credit application and got approved. At no time was I informed that I still was going to be on the loan. I spoke with the Assistant Manager at Crown Capital and he told me his company was not licensed to take over a loan and not continue to have the previous person on the loan as cosigner. My problem is - I need this off of my credit - also, I was never told I would continue to be on this loan as cosigner. Can you offer advice?
1 Answer from Attorneys
Re: cosigning on a loan
I'm sorry to have to tell you this, but probably there's nothing you can do.
When anyone co-signs a loan, he promises the loan will be paid, in full, on time, and if it isn't he will be responsible.
The lender does not have to remove the guarantor, unless there is a specific agreement to do so.
Unless you can prove there was some kind of fraud against you, or that the lender had agreed to release you, you are probably stuck until the loan is repaid.
Best check with a local lawyer, though, to see whether there is anything in the specific facts of your particular case which might help.
If you can't afford a lawyer, try legal aid. Most bar associations also have panels of lawyers willing to help for reduced fees.
Good luck -