QUESTION
Can the lender won’t provide the loan info after I signed for someone on an auto loan?
Asked on Sep 04th, 2016 on Bankruptcy - Kentucky
More details to this question:
My fiancé needed a vehicle and I tried to consign. It ended up that I needed to be primary for the loan to process but he was listed on all the paperwork as well. I did this so he could try to rebuild his credit. Ultimately, it made more sense for him to file for bankruptcy, so he did. He tried to reaffirm the debt but the judge wouldn't allow it based on his income and expenses. It was discharged in December. He has continued to make payments. I tried to log into the online account access and was directed to call their customer service. I was then told that despite being the main signor, I could not have online access any longer, nor could they send payment stubs. If I needed info, I had to call. It also no longer shows up on my credit report. I was told that because he didn't reaffirm. They weren't going to report to the credit bureau. I am baffled. That's the whole point of a cosignor to keep liability on someone if there's a failure to pay. They've been totally shady in removing my ability to access account information or receive monthly statements to pay. Based on this, if we decide to stop paying, I'm not on the hook anymore, right? If they're stopped reporting to the credit bureau, can they report that I stopped paying the loan? The car is worth about half of what is owed. At this point it may be more favorable to just let them come get this car and attempt a new loan.
4 ANSWERS
2 Awards
If you stop paying you will still be liable.
Answered on Sep 28th, 2016 at 6:21 PM
Your first mistake is to assume that the vehicle lender is obligated to report any debt to the credit bureau and thereby conclude that there will be no harm if you stop paying. Your next mistake is to assume that if a debt is not reported to the credit bureau the lender has no legal rights. The most serious mistake you have made is that your fiance's bankruptcy stopped your legal obligation to pay. We lawyers like to say that when you assume, you make an A#$ out of u and me. Read your loan contract. You are now the only one responsible for paying this loan and will suffer the consequences if you chose to breach it.
Answered on Sep 28th, 2016 at 11:38 AM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Since you signed for the loan, you remain liable for payment. Continue to make the monthly payments. Write the loan number on the checks and the month for which the payment is being made. If there is a repossession, voluntary or not, they will probably report the repo on your credit. At some point, the company will figure out that you didn't file and come after you for the balance, interest and late fees. You might try to negotiate a payoff, if you're in a position to pay the amount you offer to settle the debt.
Answered on Sep 28th, 2016 at 11:37 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First, it is the almost universal practice of lenders not to report payments to credit bureaus if the underlying debt was not reaffirmed. Their reasoning is that since the Bankruptcy debtor's obligation on the underlying debt was discharged (because not reaffirmed), they are not allowed to report a default in payment, so they should not have to report the actual payments. However, the obligation of a co-signer is generally not discharged by the bankruptcy of one of the signers, if the co-signer did not file for BR. I do think that if the creditor is trying to collect from you, you are entitled to all relevant information. I suggest you have your fiance contact the lawyer who represented him the BR to write a stern letter to the creditor, explaining the facts and demanding the information.
Answered on Sep 28th, 2016 at 11:37 AM