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She didn't pay for the car!!

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wsmith444

Junior Member
What is the name of your state? DE

Hi all. Ok bare with me this gets a little involved...

3 1/2 years ago, my partner had a very manipulative friend who needed a car after totalling hers in an accident where she was driving drunk and at fault. She had no insurance or driver's license at the time. After the accident, she needed a car. She was unable to purchase one without a valid driver's license, so she asked my partner to do it and promised to make the payments. So, he did. He is the primary signer on the loan and she co-signed. Do I even have to tell you what happened?

Let me give you a little history. I know there is no excuse for some of the stupid mistakes people make, but this was a rough time in his life. He was into drugs and basically living a very irresponsible life. He was actually the passenger in the vehicle when it was totalled. He suffered a broken collar bone and other minor injuries (that hospital bill has yet to be taken care of but that's another story). After the accident, she took advantage of his vulnerable, sedated state and talked him into purchasing this car. If there was a moment in his past I could erase, that would be it!

A few months after signing, Kim was sent to jail for the accident (I think this was her 4th or 5th DUI- what a winner). At that moment, or possibly even before, the payments on the vehicle stopped. A year later, it was repossessed and sold at auction. The remaining balance is somewhere around $12,000. A collection agency contacted my partner in 2003 and he agreed to make payments, but I stopped him from doing so because I feel that Kim should be held responsible. We then decided he should file bankruptcy. The collection agency then wrote it off, no longer pursuing him or Kim for the money.

He never did file bankruptcy, and we are now in the process of buying a house. We have been preapproved for the mortgage, but the mortgage company is saying he SHOULD (but does not have to) try to get Kim to make these payments. He called her a few times before receiving a call back. They hadn't talked in about 3 years as of last week. They talked for a few minutes but then he tune changed when the car was mentioned. She said she had to go and would call him back. Well, we've received no calls back, despite calling her and leaving messages nearly every day since.

My question is, and I'm sorry it took me so long to get here, is there any way we can pursue her for this money? I know it's been a long time and they have nothing in writing stating she was actually going to be the one to make payments, only a verbal agreement from over 3 years ago. It just infuriates me that she did this to him. Does anyone have any advice? I would really appreciate it.
 


wsmith444

Junior Member
Well the harm is to his credit. Financially, he didn't have to pay a dime for this car, but it is showing up on his credit as a charge off and hurting his chances for getting a mortgage. I know that it would still reflect negatively on his credit if she began making payments, but it would still look better than what it is now, just sitting there, completely unpaid. If it's not worth the hassle of pursuing her, we'll just have to let it sit there until it drops off about 5 years from now. But I'd really like to see her pay for it... it's the right thing.
 

Tayla

Member
He was the PRIMARY signer. Unless he has a promissory note from this in-ept ex-friend stating she would make payments its doubtful HE can take her to court.
 

djohnson

Senior Member
However if they had a verbal agreement it's possible to take her to court, but the burden of proof is on him to show that there was a verbal agreement.
 

wsmith444

Junior Member
i want to thank you all for your help and advice, I really appreciate it. he is int he process of trying to get her to sign an agreement that I typed up for him last night... if I posted it here, would you be willing to look at it and see if you would change or omit anything?
 

Tayla

Member
Verbal agreements RARELY make it to a court docket. Can that idea quick!
Secondly, having an agreement signed AFTER the loan had already been issued , defaulted and sent to collections may be a very UNWiSE idea.
Get a legal aid to review the document you want to present this person, or check on the web under "Promissory notes".
 

djohnson

Senior Member
A signed document before or after doesn't matter. Even if she signs it now, it just backs up his verbal agreement. A verbal agreement can hold, it depends on proof.
 

Tayla

Member
I agree 100%. A signed document BEFORE or AFTER really *doesn't* matter. He signed the loan- the bank or loan division is going to go after him first. Since she co-signed it, they can also go after her. This having a *side* agreement that she'll pay is called an addendum to the loan- which would need to go thru the original holder(bank) of said loan. A transferring of ownership of debt still has to go thru certain procedures.
 

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