Legal Question in Credit and Debt Law in Florida
I have a car loan that was co-signed for by a friend 4 years ago. I have never missed a payment and have remained in good standing. Recently the co-signer and myself had a falling out and he is threatening to repossess the vehicle from me. Can he do that when I have made all the financial investment in the vehicle thus far? The bank said they "didnt think so" and the sheriffs department said to check with a lawyer.
1 Answer from Attorneys
No, he can't. The bank, when it made the loan to the 2 of you, retained a security interest in the car. In other words, you put up the car as collateral for the loan. It's the security interest that allows the bank to legally repossess your car if you fail to make payments or other wise breach the finance agreement. If you have a paper title, you'd see that your bank have the first lien on the car.
Your co-signer has no security interest in the car. However, he may have ownership interest in the car, depending on how the car is titled. But if the car is titled in your name only, the co-signer has no legal right to the car just because he happens to have co-signed the loan.
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