Legal Question in Banking Law in New York

Cosigner Responsibility

Hello

I cosigned a loan for a friend so that he could purchase a car. The loan did not come through the used car dealership. It was a loan from a bank made out as a check in my name. Subsequently my friend fell into arrears and the bank has started calling me with various threats of lawsuits. I have paid the last two monthly installments. Do I have any recourse but to keep paying until the total is paid?


Asked on 2/13/02, 10:44 pm

1 Answer from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Cosigner Responsibility

Without seeing the loan documentation, it is impossible to say with certainty. That caveat aside, from your description, it seems as though your only recourse is against your friend. You could, however, seek to have the car sold (is title in your name?) with the proceeds going to pay off the loan.

-- Kenneth J. Ashman; Ashman Law Offices, LLC; [email protected]; www.lawyers.com/alo

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Answered on 2/13/02, 11:53 pm


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