Legal Question in Consumer Law in Maryland

Borrower vs. Co-Borrower

I have a friend who is trying to reestablish his credit. I agreed to help him by co-signing for a used car. When we were signing the documentation I asked the Finance Mgr. why was my name always first and she said so that my friend will get a better rate if my name was listed first.Since that time we have found out that I am listed as the Borrower and he is the Co-Borrower on all of the documentation, even the Title Certificate. It appears the Dealership used some deceptive tactics. We have tried to get this resolved with no recourse. My credit is great, I don't need a co-borrower to purchase a car. All of the documentation has my address on it and not his. He also traded in his car which had negative equity. How can he trade in his car for a car where he was going to be the Co-Borrower and not the primary Borrower? If this was going to be the case, I could have gone to any dealership and gotten the car in my name with a very low interest rate and let him pay me every month. The interest rate now is around 17%. Can you tell me if I have a Case, or if there is something I can do to bring this Dealership to its Knees.


Asked on 6/11/07, 11:30 pm

1 Answer from Attorneys
Alton Drew Alton Drew, LLC

Re: Borrower vs. Co-Borrower

On first blush, you have no case. Based on what you have stated, you put yourself on notice when you observed that your name was always listed first on the documents. In addition, your friend's credit was lousy. A finance company is going to finance the person with a better chance of repaying the loan. You appraently had the opportunity after reading the documents to not sign it or ask for an interest rate in line with your credit rating.

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Answered on 6/12/07, 5:15 am


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