Cosigner rights

[jacksgrill]

What is the name of your state? North Carolina

My husband cosigned a loan for a friend to purchase a dirt bike several years ago. (dirt bikes do not require titles such as cars) The friend rode the bike a few months then sold and pocketed the money. My husband was just notified yesterday by a collection agency stating there has been no payments made on the loan since Oct. 2005 and he has one week to pay the loan. I have a few questions:

1.) Can we demand the loan details in writing before accepting we owe this amount?
2.) Are there any statute of limitations on collection of debt?
3.) Are there time limits in which the creditor has in which to contact the cosigner of the outstanding debt?
4.) By the friend selling the bike and not applying any of the proceeds to the loan be considered theft?

Thank you in advance for helping us understand what our rights are.

SBWhat is the name of your state?

[racer72]

1. We no, your husband yes. Your husband can ask for a verification of debt.

2. Yes. 2005 is well within your states SOL.

3. No.

4. Nope. It is fraud and only the original creditor could sue for it. But they don't have too, your husband is just as liable for the debt and will likely be easier to collect from.

[justalayman]

one more thing:

your husband can sue the friend(?) for whatever this costs your husband.

[jacksgrill]

Thank you, to the both of you for your helpful comments. I would like to make one correction on my question regarding SOL. I had meant to ask if there is a SOL in NC for a creditor/collector to take the debtor to court. In the little bit of research I have done I came to realize they can continue to collect, just not sure if they have a time restriction for taking the matter to court.

[racer72]

Originally Posted by jacksgrill

Thank you, to the both of you for your helpful comments. I would like to make one correction on my question regarding SOL. I had meant to ask if there is a SOL in NC for a creditor/collector to take the debtor to court. In the little bit of research I have done I came to realize they can continue to collect, just not sure if they have a time restriction for taking the matter to court.

The answer to #2 above answers your SOL question. The creditor can continue to try to collect on the debt forever unless the debtor files for bankruptcy.