Cosigned auto loan, car repossessed, wage garnishment

[xboxrules]

i cosigned a auto loan for a friend and the auto was reprocessed and I received no notices about the car being delinquent on payments or being sold at a auction back in feburary till today I got a call saying they were going to garnish wages for leftover money owed on vehicle. what are my legal rights in nc.

 

[adjusterjack]

i cosigned a auto loan for a friend and the auto was reprocessed and I received no notices about the car being delinquent on payments or being sold at a auction back in feburary till today I got a call saying they were going to garnish wages for leftover money owed on vehicle. what are my legal rights in nc.

They can't garnish your wages without first suing you and getting a judgment. Until it's just hot air and possibly illegal under the FCRA (google it).

Beyond that, you are on the hook for the deficiency balance one way or the other. If you want to avoid litigation, garnishment, the addition of the plaintiff's lawyer fees (think thousands) to the debt, I suggest you figure out a way to pay the money that you guaranteed to pay when the borrower defaulted. That's what co-signing means.

 

[xboxrules]

I failed to explain what I meant as far as the repossession I understand what's expected of a cosigner my issue was the lender gave me no opportunity to take over payments on the loan even though my name was also on the title. I found out only after the car had already been sold at a auction therefore they gave me no opportunity to take over payments now I'm stuck with a debt and no car if they would have got in touch with me I would have gladly took over the payments at least I would have had the car. So my question is should they have notified me before they sold the car?

 

[adjusterjack]

You didn't mention that you were also on the title which likely made you a co-owner and co-borrower rather than just a co-signer.

You would have to read the loan contract to determine if you should have been notified of the default.

I'm guessing that the other owner's name was first and the other owner's address was used on the title and on the loan contract where your information may only have been on the loan application.

Read the loan contract. If it is silent about notifying the second borrower of the first borrower's default then, no, they might not have had any obligation to notify you.

 

[xboxrules]

The contract does state that I would be given the option to take over payments in the event the buyer stop paying the loan. It only refers to me as cosigner says nothing about co-borrower. To be honest I don't know the difference.

 

[adjusterjack]

The contract does state that I would be given the option to take over payments in the event the buyer stop paying the loan.

Then you might have a defense to litigation if they didn't follow the terms of the contract without good reason.

How much money are they demanding?

Is it a collection agency or the original lender?

It only refers to me as cosigner says nothing about co-borrower. To be honest I don't know the difference.

It might be a distinction without a difference but, in my mind, if you are on the title as an owner, you're a co-borrower. If you're not on the title, you're a co-signer who just guaranteed the loan.

Either way, you owe it if the other party didn't pay it. The lack of notice might be a helpful technicality or it might not.