Cousin Co-Signed a Loan

[jjc710]

What is the name of your state (only U.S. law)? Illinois.

Hi all, a few months back my cousin co-signed a loan for her mother. Fast forward now, the mother has stopped paying on the loan - and refuses to answer calls from the loan company. She has made claims with the loan company that she no longer has an income (which is not true, she receives SSI.) I know that legally the loan company can not garnish anything from her SSI check due to it being a government check, but now the loan company is trying to go after my cousin for the entire balance of the loan simply because her mother states that she doesn't have an income any longer.

What could my cousin do to get the loan company to actually go after her mother? Instead of going after her? The co-signer if a loan is only responsible to make payments if a person is not able to make payments, correct? In this case, her mother does in fact receive SSI therefore she does still have an income, should the loan company not still be going after her mother instead of just trying to make the co-signer pay for this all simply because the mother does not answer their calls? What legal options does my cousin have to try and force the loan company to at least go after her mother for part of the payments, she's offered to pay half, but there should be something to protect a co-signer in situations like this where the person who originally took the loan out still has an income has to be responsible for their obligations.

 

[Zigner]

The co-signer if a loan is only responsible to make payments if a person is not able to make payments, correct?

NOT correct. The lender can go after your cousin for the full amount. He has no legal means to force them to go after his mother.

 

[ShyCat]

What could my cousin do to get the loan company to actually go after her mother? Instead of going after her?

Nothing.

The co-signer if a loan is only responsible to make payments if a person is not able to make payments, correct?

You misunderstand the purpose of co-signing. The co-signer agreed to be responsible for the loan if the other person fails to make payments, whether they are able to or not.

 

[jjc710]

So there is literally nothing she can do other than not pay the loan herself and ruin her credit, because her mother who is able to make payments refuses to? I find that to be the most absurd thing in this world. lol

 

[FlyingRon]

So there is literally nothing she can do other than not pay the loan herself and ruin her credit, because her mother who is able to make payments refuses to? I find that to be the most absurd thing in this world. lol

This is what cosigning means. The absurd thing was that he cosigned for a deadbeat.
The fact someone needs a cosigner is a giant red flag.

 

[jjc710]

This is what cosigning means. The absurd thing was that he cosigned for a deadbeat.
The fact someone needs a cosigner is a giant red flag.

I agree. However, she took advantage of her daughter, and the loan company at the time did as well by telling her that it would boost her credit score if she had co-signed. She is 19 years old, and really has no clue how all this stuff works, and now she's pretty much ****ed, bc of her own mother. Sad world.

 

[adjusterjack]

I agree. However, she took advantage of her daughter, and the loan company at the time did as well by telling her that it would boost her credit score if she had co-signed. She is 19 years old, and really has no clue how all this stuff works, and now she's pretty much ****ed, bc of her own mother. Sad world.

Yes, it's a sad world. You just figuring that out?

It's tragic that any mother would treat her daughter like that.

But it happens all the time.