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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Who to Sue After Paying Off a Cosigned Loan

    A woman in New York convinced a friend to cosign a student loan for her son. The son was late with payments on a number of occasions, and each time the cosigner spoke with the mother about the problem not the borrower. All of his contacts have been with the mother.

    The son defaulted on the loan, and the cosigner paid it off. He now wants to sue to recover the money he paid. Should he sue the mother, the only person with whom he ever spoke about the loan, the son, or both?

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

    Default Re: Who to Sue After Paying Off a Cosigned Loan

    He can try to make a contract-based claim against the mother, alleging that his agreement was with her and that she should be liable even though the contract he signed with the lender was for the benefit of her son. He can also sue the son based upon a theory of unjust enrichment. The court will review the allegations and facts and determine whether the defendants should be held jointly liable for the debt.

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