I got this one cousin who used up my name to apply for his car loan. I hesitate but just to satisfy him, I did gave all the proper documents needed to hire purchase the car to him and I did sign the loan form but at that time I thought the loan wont be approved because I dont have any car license(thats 1 of the requirement to hire purchase a car). And all of this was done not at the bank but at a bus stop !(thats where i sign the form, really..). And eventually the loan got approved. Its OK with me then as long as my cousin pay up the instalment. But now after 2 years, the cousin got some financial problem and didnt pay the car instalment, and I have received notice from the bank lawyers. What should I do?
2006-06-15 07:50:41 · 23 answers · asked by brightdarkness 3 in Business & Finance ➔ Other - Business & Finance
Ok, first things first, what you did was VERY unwise. You borrowed money for your cousin and made no legal requirement on him to pay anything. The only thing you can do without getting sued is to make payments to the bank and makeup the past due balance. Hopefully you will learn from this experience.
You have a loan with the bank that you applied for and signed a contract with. The bank is not required to verify that you have a license to give you a loan. There is no requirement about where the documents can be signed.
You could possibly sue your cousin, however since you don't have any written contract with him, it will be difficult. Maybe he will just give you the car.
2006-06-15 07:59:08 · answer #1 · answered by davidmi711 7 · 1⤊ 0⤋
How old are you? If you were a minor when you signed the papers you may have an out. I can't see how they approved the loan though if you you weren't of age or employed gainfully.
I think the best option for you is to see a lawyer on consultation. I don't really see it not costing you somehow. Where is the vehicle? If it is your loan, your name should be on the title to the car. I would think this is mandatory for any financial institution.
It sounds like you have really gotten yourself into a can of worms. Maybe the best you can hope for out of all this is a cheap lesson in trust and accountability.
You need to share more details with someone qualified to help you in this matter. Good luck.
2006-06-15 08:00:54 · answer #2 · answered by nighthawk 4 · 0⤊ 0⤋
You cannot sue a bank for your own stupidity and your cousins deceit. You are liable for the loan. Go get the car and sell it and then if there is anything still owed make payments and admit to the bank what happened.
2006-06-15 07:55:17 · answer #3 · answered by yes_its_me 7 · 0⤊ 0⤋
legally, you took co-responsibility with your cousin for the car loan. If he defaults, you are the next one held responsible. sounds like you should have made a better judgement call. these situations are alwasy risky, and it will definitely effect your credit and your future. All you can do is get your cousin to pay the loan, or you must pay it yourself. Good luck.
2006-06-15 07:58:54 · answer #4 · answered by elderkesler 2 · 0⤊ 0⤋
Sounds like you took out a loan for your cousin. You should be suing him, not the bank. There's probably not a lot you could do, unless you were willing to lie and accuse your cousin of fraud.
2006-06-15 07:53:48 · answer #5 · answered by wordnerd27x 4 · 0⤊ 0⤋
You (co-)signed the loan papers. You HAVE to make the payment, if your cousin doesn't. You could try to go to court, but you'd lose. This situation comes up all the time and unless your cousin defrauded you, you HAVE TO PAY. Sorry.
2006-06-15 07:53:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
it particularly is an oversimplification for political video games. The low-earnings minority loans are an fairly small component of the housing/credit disaster. And the failure fee on low earnings loans with Fannie/Freddy is smaller than the massive loans with the investment banks. as with every growth, the run-up in housing costs and next loss of fee performed a greater section. That and the securitization of mortgages into bonds, which bumped off them from the books of investments banks and allowed them to make further and further loans previous their reserves.
2016-12-08 09:26:41 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If it's all legally done, the forms you signed were legal and everything then you can sue, but won't get anywhere, If however it was illegally done, then you have more chance of suing.
I'm afraid to say though, this looks like it was your fault, so don't hold out too much hope.
2006-06-15 07:54:27 · answer #8 · answered by Mummy of 2 7 · 0⤊ 0⤋
NO you can not sue your cousin yes but not the bank. You knew and let him get the car in your name your a sucker. Go get the car it is in your name any way and PAY the bank.
2006-06-15 07:57:25 · answer #9 · answered by Anonymous · 0⤊ 0⤋
i suggest suing your cousin who defualted on the agreement you set up at the bus stop. if you signed legal documentaiton then you gave permission right there. It might look bad on your credit report but dont be afraid of letting them repo the car, that might send a message to your cousin that your not there to pick up the slack
2006-06-15 07:55:25 · answer #10 · answered by Mike is me 5 · 0⤊ 0⤋