Legal Question in Credit and Debt Law in California
Terminating Cosigner Obligations
Cosigned used car loan for a ''friend''. Friend has bearly paid half of payments and I've been forced to make payments to keep the account in good standing. Friend drives the car and I have no access to it. Friend refuses to release car to me. What can I do legally to get the car back and sell it before it loses anymore value?
1 Answer from Attorneys
Re: Terminating Cosigner Obligations
You options are somewhat limited given that you seem to want to protect your credit. Your main options involve either (1) suing your friend for damages for indemnity/breach of contract; and (2) suing for possession of the vehicle. You cannot get of your contract with the lender, so you are on the hook for the during.
Option one means just filing a suit to seek reimbursement for what you have paid out for the payments. If the amount is less than $5000, you can do this in small claims. A judgment is only as good as your ability to collect and only addresses your friend's prior failure to pay.
You could also file an action for possession of the vehicle, and that is very difficult to do without and attorney and cannot be done in small claims court.
If you need additional assistance, please call me for a consultation.
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