Co-signer for a car loan

[Jacob Kenney]

Jurisdiction

Oklahoma

Alright so here's the deal. I co-signed for my friend of many years to help him get a car since his old one broke down and his credit wasn't the greatest. Yeah I know, stupid idea, but what's done is done. He was having trouble making his payments on time so I told him that I would make his payments for him and he can just give me the cash later. That had been going well for awhile but now I'm in a different state because of the military, he's in Oklahoma and I'm in Washington state. Recently he hasn't been responding to texts, calls or Facebook messages and I'm at a loss as to what to do. I realize I made a monumental mistake by trusting him this much and I need advice as to what my options are in this case.

 

[adjusterjack]

Start with the unfortunate news that your options are very limited.

All you are is a guarantor of his loan. You have no rights to the car.

If your credit score means anything to you, you have to continue making the payments if he doesn't and all you can get to do is sue him where he lives for the payments that you've made.

That means traveling to Oklahoma to go to court, maybe even more than once and you don't get any money for travel costs.

On the other hand, you can quit paying and let the car get repo'd. That trashes your credit and when the lender sells the car at auction for less than it's owed, the lender will come after you for the balance when it can't get any money from your deadbeat ex-friend.

You might want to talk to somebody at your base's JAG office and see if defaulting on a debt could get you in trouble with the military.

 

[Disabled Vet]

You can call the bank..... Since he is behind on the payments tell them to repo the car. Then you can take over the payments and keep the car. Or at least get the car and sell it. Lesson learned.....

 

[adjusterjack]

Just thought of something. Check out the SSCRA and see if there's any relief in there:

The Soldiers and Sailors Civil Relief Act (SSCRA)

 

[army judge]

If your soon-to-be-former-friend and recently revealed deadbeat is in the military, contact his 1st SGT.

There are rapid remedies available if he's active duty.

 

[Jacob Kenney]

Thanks for all the quick replies everybody. Looks like my options are slim as he is not in the military. Fortunately we do have enough money in savings that we could pay off the car right now if we wanted to. If we were to do that what would be the chances of successfully suing him since my name is on the contract?

 

[adjusterjack]

I don't think paying off the car is a good idea. If you have to, keep making the monthly payments until you return to Oklahoma and can deal with him locally.

Another possibility. Stop making payments right now and tell the lender where to find the car. You may bleed a little now but it's better than bleeding a lot later. Your deadbeat friend doesn't deserve a free car.

 

[army judge]

Your name on the loan papers, OP, means NOTHING if your name isn't on the title.
Should you pay off the note, you've simply gifted a deadbeat with a free car.