Legal Question in Business Law in California
Loan
Ex-fiance co-signed for car loan. He now wants name off loan. I have had possession of the car since purchasing in 10/2003. The length of the loan is 5 yrs. I have made ALL the payments and am in good standing with the credit union (paid up to date). The car is registered in both names but insured only in mine.
Who's responsibility is it to have his name removed? I will continue to make payments but he is being very insistent on disassociating himself with me.
3 Answers from Attorneys
Re: Loan
See if the lender will do it, especially if you have another account with the credit union. Why keep him on the loan? It only complicates life!
Re: Loan
One other thing . . . you might want to condition his removal from the loan on signing over his portion of ownership to you.
Re: Loan
Removing a name from a loan for a car or anything else requires either (1) paying off the loan (by refinancing or otherwise) or (2) the permission and cooperation of the lender. If you have two people "on the hook," why let one of them off? Well, it actually can be done in some cases, but generally involves what amounts to a refinancing. It's possible your credit union will be very cooperative if you have a big balance and do other business there. However, the loan may be re-written at today's interest rate, which may be higher. The credit union may also want the car re-titled at the DMV to show you as the sole owner, which would be a good move and the "ex" should be happy to sign off if he really wants total disentanglement.
In any event, your starting point is to find out what your credit union will do for you.
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