Legal Question in Credit and Debt Law in Pennsylvania

I got a loan for a friend for $10,00.00 to buy a truck. I took the check to the car dealership and the friend got the truck. He did not pay on the loan. The truck was repoed and sold at an auction for $6,00.00 meaning I owed $4,000.00 to the bank. What recourse do I have. The dealership is witness to this.


Asked on 12/25/10, 9:25 pm

1 Answer from Attorneys
Rachel Hunter

Is the loan in just your name and is the truck in just your soon to be ex-friend's name? If so, the answer is none. You can sue the friend, but it will difficult to collect. Better to make a deal with the bank and see whether your friend will chip in towards the settlement. Can you pay any amount? Sometimes lenders will make deals or let you pay over time.

You learned an expensive lesson and I hope you do not do this again. Never co-sign or take out a loan for someone else.

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Answered on 1/11/11, 8:47 pm


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