Co-Signer Screwed!

[shoodogg]

What is the name of your state? Missouri

In 1998 I was renting a room from a young family. They needed to buy a couch and loveseat, and since they were helping me with a place to stay, I decided to help them get credit on the couch by co-signing for the furniture.

In August of 1999 I moved out and have not been in contact with them since.

When checking my credit report, there is a negative account reflecting the credit I co-signed for this family. It seems that in 2002 they stopped paying and the account was written off as a Profit and Loss.

I realize that as a co-signer I have responsability, but I should also have rights. I was never contacted regarding this account by the collectors. I was never notified by the owner of the house. How can I fix this?

If you co-sign for something, is your name forever attached? From what I understand, if a husband and wife are divorced and the wife uses a joint credit card to rack up debt, the husband is no longer responsible, correct? Isn't this sort of the same situation? Any advice is appreciated.

-Scott

[JETX]

Originally Posted by shoodogg

I realize that as a co-signer I have responsability, but I should also have rights. I was never contacted regarding this account by the collectors. I was never notified by the owner of the house.

How do you KNOW that they never sent a letter to you at the last address you gave them?? Did you give them a 'change of address' to your current address??

How can I fix this?

Two ways:
1) Pay it, or
2) Ignore it and hope they don't get a judgment against you.
The SOL in Missouri is: 5 years for an open account (credit card) or 10 years for a written contract. If they get a judgment, it is an additional 10 years (from the judgment date) and can be renewed.

If you co-sign for something, is your name forever attached?

Nope. It is only 'attached' until either the debt is paid.... or the SOL expires.

From what I understand, if a husband and wife are divorced and the wife uses a joint credit card to rack up debt, the husband is no longer responsible, correct?

Nope. If the husbands name is on the account (joint) then the ex is still liable.

Isn't this sort of the same situation?

Yep. You are just as liable as the original signers of the contract. Just as in the CORRECT answer to your example.

[shoodogg]

Thanks for the reply. From what I see, they have already closed the account and left it as "Charge-Off". So I will just leave it alone since it will be off my record in 2 years. Thanks.