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  1. #1
    Join Date
    Dec 2008
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    26

    Default Co-Signer Recovery Rights After Paying Off a Loan

    My question involves collection proceedings in the State of: Ohio

    A party co-signs a car loan with the agreement that the primary will be responsible for paying the loan. The primary made all payments for 2 years and then stopped. Car is repossessed, but co-signor settled with the lien holder.

    There is no written contract between the primary and the co-signor, but the parties performed as if the agreement was for the primary to be responsible.

    Can the co-signor recover from the primary borrower for the amount he had to pay to the lien holder?

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Co-Signer Recovery Rights After Paying Off a Loan

    Did the deal involve the cosigner buying the car from the lender, or did the borrower keep the car even after the co-signer settled?

  3. #3
    Join Date
    Dec 2008
    Posts
    26

    Default Re: Co-Signer Recovery Rights After Paying Off a Loan

    the lender repossessed the car and auctioned it. co-signor paid the remaining balance of what was left after the auction

  4. #4
    Join Date
    Mar 2013
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    18,340

    Default Re: Co-Signer Recovery Rights After Paying Off a Loan

    Can the co-signor recover from the primary borrower for the amount he had to pay to the lien holder?
    There's no way to predict whether you CAN recover. You can certainly sue for indemnification but, face it, the deadbeat couldn't or wouldn't pay for the car, what makes you think you'll ever collect on a judgment?

  5. #5
    Join Date
    Dec 2008
    Posts
    26

    Default Re: Co-Signer Recovery Rights After Paying Off a Loan

    She works a regular job for the past 3 years. That was not the issue

  6. #6
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Co-Signer Recovery Rights After Paying Off a Loan

    So this was a girlfriend thing?

    Then sue for indemnification, get a judgment, garnish her wages.

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