QUESTION
What should I do if a friend illegaly used me as a cosigner and now my credit is ruined?
Asked on Aug 11th, 2012 on Bankruptcy - California
More details to this question:
My friend of 30 years signed my name on an auto loan, I knew he was going to look and wanted me to co sign but I was stalling because it was risky.
They asked for my social and drivers license to just run a credit check, and they ended up signing for $9,900.00.
I knew nothing about it until i got a bill in the mail, which i called him and told him to resolve it.
Then he wasn't making the payments so they wanted the car, which i told them where it was, but we never had conversations and I never made a payment, now it is on my credit for $3,795. What do I do? Can I sue him?
4 ANSWERS
Yes, you can sue him but in all likelihood, that is pointless. He probably doesn't have 2 nickels to rub together.
First, call the police. What he did is a form of identity theft.
While you are at it, report the dealer who sold him the vehicle, too.
Using someone's name and SSN without their consent (and usually their signature) is a crime.
The bank who provided the financing may not know that your signature was forged.
However, the sales person or credit manager at the dealership did and that person is a criminal.
Don't let them get away with it.
Next, write to the credit reporting agency and to the bank who reported you.
Tell your story. No whining, just the facts. Demand that the bank remove the report from your credit or prove that you signed the credit application and financing contract.
There will be a signature. It just won't be yours. They hear this all the time, and most of the time the party who is denying signing has a convenient memory, so you may need to be persistent.
If you write to them 3 or more times over a period of a month or more and nothing happens, go see a lawyer.
Answered on Aug 27th, 2012 at 1:19 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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You can sue him but good luck collecting. Never co-sign unless you are really sure about the person and his credit.
Answered on Aug 27th, 2012 at 1:18 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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You should report the forgery to the police and inform the creditor that your signature was forged.
Answered on Aug 27th, 2012 at 1:18 PM
1 Award
Yes, you can sue him for indemnity to recover the money you are now required to pay ($3,795?).
But good luck recovering anything! If he couldn't pay for the car loan, how will he ever pay you?!
Never EVER co-sign on a loan! Least expensive option is to sue him in small claims court, but if you lose there, you have no right of appeal.
But if you win, he has the right to appeal and get a new trial in front of a superior court judge-that's the small claims court rules here in CA.
Judgment lasts for ten years and can be renewed for another ten, but be aware, that if he files BK, the judgment will be discharged and you won't see a dime. Good luck!
Answered on Aug 27th, 2012 at 1:18 PM