Legal Question in Credit and Debt Law in Pennsylvania

Re: Default on co-signed loan

Attorneys have one piece of advice regarding co-signing loans. Don't do it unless you 1) are prepared to pay the note yourself and 2) you can completely trust the other party. Co-signing is a misnomer. When a person co-signs they are completely responsible for the debt. The other party has already been determined to be unsuitable for credit and therefore the creditor required that someone elese, the cos-signor, guaranty the debt.

In the credit instrument it will explain that the co-signor is responsible for payment even though the creditor does not contact that person at all.

You should either speak with an attorney or negotiate and arrange to pay the debt with the creditor, rather than any collection agency. The creditor may be willing and able to completely remove the mark from your credit report.

As to the credit card interest rate. Some banks are just not worth doing business with. My advice would be to decide if you want to do business with an institution that treats its customers so shabbily. Pay off that debt and if you still need a credit card get another vendor.

Regards,

Roger Traversa

email: [email protected]