Legal Question in Credit and Debt Law in California

Recovering loss from being a cosigner

I cosigned a student loan for a family member in good faith to help them get ahead. The member is now in jail for reasons he did not disclose prior to me making my decision and it appears that he may not have any recourse to pay and seems to be making no effort. Now I am getting hounded by the loan people and threatened unless payment begins. I have an excellent credit record and feel that this will put a black mark on me. What legal recourse do I have since I feel that I have been conned. Now I am not so sure he used the loan for school.


Asked on 8/12/02, 3:30 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Recovering loss from being a cosigner

You may have been conned, but not by the loan people. You vouched for the payment, and the have the right to collect from you, and report delinquencies against your credit.

Your only real alternative is to pay the loan, and then sue the family member for the money, and collect when you can.

Your only other alternative would be to prove that the student loan company failed to follow any proceedure regarding disbursement of the funds.

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Answered on 8/12/02, 5:58 pm


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