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  1. #1

    Angry Can a Co-Borrower Sue for Damage to His/Her Credit As a Result of Late Payments?

    My question involves collection proceedings in the State of: New York

    My uncle signed on as a co-borrower for my first year of college. Since then, my mother and grandparents made the payments on time until I graduated. Then I took over. I always pay it, but rarely on time. I'm a graduate student now and having an especially hard time being on time with payments, but I always make them. The most I have been behind is nearly 60 days, but I have never defaulted on it (default is 90 days). My late payments are effecting my uncle's credit and he is now threatening to sue me (and my mother, who is not on the loan) if I continue to make late payments.

    Can he do this? And what would be the likely outcome? I know as a co-borrower he's legally liable to make payments on the loan if I cannot, however he has only done this on one occasion, after I had suffered an injury several months ago and could not work. Also, I don't think my mother has any liability, since she is not listed as a co-borrower. I really do try, in earnest, to make this payment every month. What do you think?

  2. #2
    Join Date
    Jan 2008
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    Toledo, OH
    Posts
    16,307

    Default Re: Can a Co-Borrower Sue for Damage to His/Her Credit As a Result of Late Payments?

    I think you need to find a way to either get your uncle off the loan or get it together and make those payments on time before you ruin your relationship with him and cause a lot more family resentment.

    You might consider postponing grad school and working full time so you can get that loan paid off and stop hindering your uncle's ability to obtain credit for his own purposes. Your actions are having an adverse effect on the life of someone who was only trying to help you, you need to get that reined in.

  3. #3

    Default Re: Can a Co-Borrower Sue for Damage to His/Her Credit As a Result of Late Payments?

    I'm not looking for a lecture on family dynamics. I'm looking for a legal answer, not your moral leanings on the subject, so thanks for nothing, LawResearcherMissy.

    I guess I will have to speak to an actual attorney, not some random person on the internet who can't seem to offer an objective response.

  4. #4
    Join Date
    Jul 2006
    Posts
    5,437

    Default Re: Can a Co-Borrower Sue for Damage to His/Her Credit As a Result of Late Payments?

    Quote Quoting LawResearcherMissy
    View Post
    I think you need to find a way to either get your uncle off the loan or get it together and make those payments on time before you ruin your relationship with him and cause a lot more family resentment.

    You might consider postponing grad school and working full time so you can get that loan paid off and stop hindering your uncle's ability to obtain credit for his own purposes. Your actions are having an adverse effect on the life of someone who was only trying to help you, you need to get that reined in.
    Excellent and accurate legal advice.

    Also, poster, it would be hard for the uncle to say, "My credit is hurt because I have not paid on a loan that I am liable on."

    Otherwise, the advice you got was correct.

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