Consumer Law, Warranties cosigner

[rncl]

I cosigned for my cousin regarding her student loan last 2003.
On 2005, I started to pay the loan (cosigner's responsibility) because she have not paid the loan yet. Last year, I just learned from my aunt that she didn't go to school with that loan and that she used the money to fix their house.
I know its my responsibility to pay as a cosigner but it is not fair for me to pay if she didn't use the money for school.
What can I do now? Until now, I'm still paying every month just not to ruin my credit history

 

[calalily]

You can sue her in civil court but there is a limit on how much you can sue for. Keep paying until the suit is over and if you are awarded money use it to pay down the debt. How much did you co-sign for? Maybe talk to someone about filing possible fraud charges too.

 

[rncl]

It was originally about 16,000 and now it is about 20,000. That is why it is so hard for me already to pay this amount that is not mine. If I will refinance it, it will surely under my name now.
Thank you for your answer and your advice.

 

[calalily]

I would still sue her for the maximum amount allowed in small claims and see if the student laon corporation will file criminal fraud charges as she never used the money for school. If they won't or can't file, talk to the police in your town about filing criminal charges.You may want to talk to an attorney on a (first initial consultation) consultive basis to see if you should file a civil lawsuit for the whole amount, but you will have to pay the lawyers fees, unless he is willing to charge those to the cousin if you win.

 

[edman8636]

Hypathetical

This is interesting and perhaps similar to my situation, perhaps someone can help with clarifying a point...

1. What if there was no fraud. In other words, what if she attended school, as was her original intent, but then came under hard times and could not pay, as promised. Does the co-signer have options to sue?

2. If the money was used as intended, but then default occurs> co-signer sues, debtor files chapter 7, but the co-signer continues to press for a lawsuit, what are the debtors options: pre and post discharge? What if the BK is discharged - can the co-signer continue to sue?

3. Lastly, what if the co-signed document was actually for a business, but she personally guaranteed the loan. Provided there was no fraud, if she files chapter 7 after co-signer sues, she lets the business goes solvent (no chapter 7 filed), can the co-signer sue the business? Can co-signer sue the debtor after a chapter 7 is filed?

 

[ronijo4783]

Cosigner with ex

Okay. I cosigned with my now ex-boyfriend about two years ago. I did it because he led me to believe that we would be togeather for a long time since we had already almost bought a house togeather. After he got the student loan, which he said he would pay and was just using my name now just to make sure he got the loan, he bought a boat and a bunch of other stuff that was in no way related to school needs. I told him not to do it or atleast save half of it for school. However, three weeks after he got the money and his boat, he dumped me for no reason....well he told me about 5 different reasons that really didn't make sense. it was a month later that i found out he cheated on me with our best friend. He also made it very difficult for me to move out. I almost had to have the cops escort me in his house just to get my stuff out. In the end, he just made me pay almost $400 which he claimed was for bills, just to get my stuff and leave. He has also promised me to get my name off the loan from the beginning. Last year when i ran into him, he told me he was in the process of refinancing the loan to get my name off. But that apparently did not happen. Then he told me a few months ago that he was going to file for bankruptcy. Now, the loan has gone to a debt collection agency who has contacted both of us. They told me that when they contacted him, he said he had the money but refused to pay, and they said he was very rude about it. Now they say that i have to pay the loan. I feel like i have to since im the cosigner but the debt collector told me that i can take legal actions against him since he is breaching the contract and refusing to pay even tho he has the money. What are my options and where can i go to find more information? Ive also tried to talk to him but everytime he agrees to meet me, two hours before we are to meet he decides he's too busy. What can i do?

 

[shoegal7]

I understand your situation. I was living with a boyfriend of 5 yrs at the time and i cosigned on a private sutdent loan for him to go to school. He started the computer program, but never finished and computer training.com just took the money. We broke up over a year ago and he had always promised that he would do the payments. He moved away to his home state and we no longer were getting along. When i was contacted by sallie mae I found he had done no payments and now i was liable. I asked him to do a 50-50 payment at least with me, but he refused because he said he wanted to see "my ship sink" meaning he wanted to see me suffer with his debt as though he was doing it our of spite. He changed his number and address and no one, me or sallie mae can contact him. When I cosigned i did not understand what i was doing I was young and was just trying to do him a favor. I feel like not only he took advantage of me, but computer training.com did for not allowing me to fully understand what I was getting myself into. The amount is building intrest fast! and the payment I CANNOT afford each month. I am a student myself right now living on my own.
I want to know what rights do I have as a cosigner? Should I sue him or computer training.com?

 

[calalily]

You will have to sue him. There are limits to small claim amounts that vary from state to state so check your state's laws. If you have student loans, you may be able to "consolidate" his loans with yours and defer payments until you graduate but the interest will still accrue during that time. Ignorance is not a defense when co-signing for loans, or actually for anything concerning legal matters.

 

[shoegal7]

I have already looked into the consolidation. thank you. I hope to get better more indepth advice. Anyone else?
It is hardly ignorance, I did not ask for a personality assessment, i asked for legal advice.

 

[calalily]

You said,"When I cosigned i did not understand what i was doing I was young and was just trying to do him a favor. I feel like not only he took advantage of me, but computer training.com did for not allowing me to fully understand what I was getting myself into." That is where the ignorance part came in...it wa not a personality assessment. Bottom line, you co-signed; you have to pay and can sue him...There is no "better more indepth", advise. Just because you don't like the answer you got, doesn't make the answer wrong.