Legal Question in Credit and Debt Law in North Carolina

My daughter has 3 loans in my name and she was paying them on time until her circumstances changed. I keep getting threatening calls from the Credit Union because they are in my name. Is there anyway that these loans can be transferred into her name legally? I had great credit scores until they started reporting the debts as mine. thanks for your help.

Asked on 1/28/13, 11:05 am

3 Answers from Attorneys

Kenneth Love Ken Love Law

If you took out the loans or co-signed them, there is no way to take them out of your name. That is unfortunately, the risk of co-signing or taking on debt for someone else.

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Answered on 1/28/13, 3:38 pm

I agree with Attorney Love. These loans are in your name and you are responsible. If yoour daughter is late or delinquent then this affects your credit score. The only way to stop this is for you to pay back the loans and have your daughter execute a promissory note and pay you.

If your daughter is late, there is no way that the credit union will transfer the loans into your daughter's name. Possibly, your daughter could apply for loan somewhere else and use the proceeds to pay off the credit union. You indicate that your daughter's circumstances changed but you don't say how. If there was a job loss or illness and she is not working or out of work and can't pay then she will not be able to get a loan either.

I'm sorry. Co-signing or putting something in your name sounds like a good deal but when things go wrong as they often do, they can have really devastating consequences. And credit unions, while great to deal with, are really difficult when it comes to money owed to them because credit unions are member-owned. When one member does not pay, it hurts all the members.

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Answered on 1/28/13, 4:43 pm
Lynn Coleman Attorney-Mediator

I agree with attorneys Hunter and Love. You cannot force a credit union (or a bank, or a credit card issuer, or any lender) to do this, at this point.

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Answered on 1/28/13, 6:18 pm

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