Question about loan default notification

[NotJimmy]

An Auto loan was made thru a national credit company with the buyer in Colorado and a cosigner in North Carolina. The buyer moved to North Carolina and defaulted on the loan after two years. The auto was repossessed in North Carolina and sold at auction. The cosigner was never notified at any point along the way that there was any problem with payments. He was never asked to make late payments, never notified that the auto would be or was repossessed. He was never notified that the auto would be sold at auction. Now the credit company demands full payment from the cosigner for the remainder on the loan. What should the cosigner do? Are there any options? Shouldn't the cosigner have at least been given the opportunity to salvage something, make payments and have the auto?

 

[aahlee]

It is assumed the co-signer is an ADULT and would keep tabs on the money he owes...he didnt.

I figure they DID notify him in Colorado, but the mail came back undeliverable or no fowarding address.

 

[NotJimmy]

Thank you for your reply and your right, an adult should keep track of the money he owes. However it was the buyer who borrowed the money. The account was in his name. He was the one with account information and thanks to the ridiculous emphasis we place on privacy in this country he was the only one with access to that information. Had I been given a "heads-up" that something was wrong I could have intervened. I didn't even have a copy of the contract. Besides, the company had no problem finding me once it was too late. Please, if this is the level of response I can expect from this forum I'm wasting my time. I got screwed by trusting one person and now I think I'm being screwed by a company.

 

[aahlee]

the buyer SHOULD have, emailed or faxed or let the co-signer know each and every month it was paid, with the cancelled check...


I guess you'll never loan anyone else any money or co-sign for a loan or your kids apartment leases, unless you can keep better tabs on the money you could lose.

PS...what level of response were you looking for? The car company did nothing wrong, it was the buyers name on the contract when it should have been in BOTH of your names until the loan was paid off, then they would have had to make you an equal partner in this mess.