Legal Question in Credit and Debt Law in California

Co-signing a vehicle

my sister co-signed a car for an ex-boyfriend. He disapeared, with the car and cannot be located. She was visited by who i believe is a person representing a collections agency, who threatended to arrest her if she didnt turn over the vehicle. (her ex-boyfriend has not been paying the car and states that my sister has possesion of the car). As a co-signer, i know she has to pay if the other party fails to pay. But does how the collections process work, and does she face criminal charges if she does not turn the car over, or cannot pay. What steps must a collection agency make prior to seeking legal action? Under what obligations are private persons representing a collection agency under when identifying themselves. (the subject who visited my sister refused to give her any information other than a name and telephone number of a person he was representing)And lastly, what steps should my sister take to help rectify the situation she is in? She has no contact infrmation for this ex-boyfriend as it is believed that he has moved out of state. Does she face any criminal charges at this point? thank you.


Asked on 8/25/05, 4:51 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Co-signing a vehicle

It is a violation of the federal Fair Debt Collection Practices Act for a debt collection to threaten criminal charges to collect a consumer debt. Your daughter has a claim against the collection agency for emotional distress and other damages. Yes, she might be on the hook for defaulting on the car loan, but than can't bringing criminal charges against someone for failing to pay a debt. She also should not be a subjected to this abusive collection behavior and should seek legal counsel.

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Answered on 8/25/05, 10:05 am


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