What is my recourse?

[ginou1977]

What is the name of your state?What is the name of your state? Florida
In January 1999, I co-signed 2 loans for a friend who was having plastic surgery ($ 3,500.00 x 2). In fact, on one I was the guarantor and on the other I was the borrower. At that time, I had perfect credit and hers had been messed up by a divorce. She was working for a major airlines (and still is, to this date) was making more money than I was. She swore that she would repay the debts in no time because she could work lots of extra hours. In addition, she use to help one of her close friends that owned a store and made good money. Like a fool, I trusted her.
Now, 5 years later, one account has been assigned to a CA which is threatening to put a lien on my house and drag me to court. The other one is MBNA with an outstanding balance of $ 2,795.10 and and interest rate of 27.98% from 15.99%, 3 years ago.
It reached the point where she is not picking up her phone anymore and both the CA and MBNA are calling my house several times a day.
Needless to say that my credit is in the worst shape...
Please let me know what my recourse. I know I acted like a moron but I am 'beyond' frustrated...

 

[Ladynred]

We always want to help friends and family but too often it ends up biting us in the butt for being nice.

When were either of these last paid - to the original creditors ??

If a CA is threatening you, they are breaking the law, especially if they are making threats of legal action they cannot take or do not intend to take. The Fair Debt Collections Practices Act governs what a CA can and cannot do and if they are violating the FDCPA, you can sue them for those violations. You also have recourse to stop them from harrassing you on the phone.

If it truly is the original creditor doing the harrassing, then there's not much you can do, the FDCPA doesn't bind them and they get away with the murder that CA's are prohibited from doing.

FL has a 100% homestead exemption - they cannot touch your home.

 

[ginou1977]

Is it wise to sue her in small claims?

Thanks a lot for your reply.
My so-called friend is 6 months behind on the account that the CA is trying to collect and the MBNA is 3 months past due.
Is it wise to sue her in Small Claims court for the MBNA account and have her wage garnished, as it's the one that's under my name? It really messed up my credit. Although I refinanced my mortgage early last year and paid off all my credit cards, that does not help. I don't see a way out of this hole...
Please give me your input...I am desperate...