which states require a creditor to attempt collection from the primary borrower before attacking the cosigner?

Question

the FTC website says all over that some states protect cosigners in this way, but doesn't say which states. I'm in MO being harrassed about a debt from 2003 that as a cosigner I never even received a bill for. I've made numerous written contacts to the company asking what the debt is for (fiance totalled his car and we were told the GAP insurance would cover 100%) and gotten no response.

i work 2 jobs just to pay my rent and my school tuition. he makes more $$ than me and lives with his mom paying no rent. it makes me angry that i'm being threatened by thugs because i have otherwise perfect credit and they think i'll cave in before he will.

please don't lecture me about the danger of cosigning. i've learned my my lesson and i'll never do it again. at that time we were getting married, we lived together, and i trusted him implicitly. i had no idea cosigners could be held responsible if the primary party was completely able to pay and chose not to do so. now i know...

I'm dealing with a collection agency. The original company--GMAC--says they have no record of what the charges are for--only the type of car they were on. Apparently once they write you off they toss all of the paperwork.

http://www.ftc.gov/bcp/conline/pubs/credit/cosign.pdf

the asterisk info is what my question refers to. I just feel like if I am sued that the primary borrower should at least have to be named as a co-defendant and be responsible for 50% or more

Answer 1

Many people do things for those they love - there is nothing wrong with that. It was nice of you to help someone you had loved and it's a shame it turned around and bit you.

Like Studly, I haven't seen the law you were talking about, but I'll do some searches for it also.

I don't know if you are dealing with the original creditor or a collection agency, but your state has no "state" FDCPA statutes that hold the original creditor the same as a collection agency. (there are only a handful of states that do)

Since you stated that the GAP insurance was supposed to cover the total amount, you "really need" to get the paperwork from that insurance company proving it was paid.

You should also check your credit reports to see if they are reporting on it. If they are, dispute it.

edit+++++
I have not been able to find anything, so far, in your states statutes that mention that.
But, with that being said, there may be ways (by using some state statutes) that you can make yourself a harder target, which may make them take the spot light off of you and start going after him.

I would suggest that you might click on my profile and go to the last link listed. Post your question in the credit forum. There are many knowledgeable people on there that will be able to help. Plus there are probably quite a few that are knowledgeable in your states laws.

AND find out what happened with the GAP insurance. Find out if they paid the original creditor directly or if they gave the money to him. If they gave the money to him, find out if he paid the original creditor or used the money for other uses.

Answer 2

I'm not aware of the law you are referring to...I need to research it a bit. But I don't seem it as that big a loophole. It seems all they have to do is attempt to collect from the primary debtor, and if that fails they can go after you.

For now, you need to send the collection agent a letter demanding they validate this debt. You said you already asked "I've made numerous written contacts to the company asking what the debt is for..."...do you have proof of this? Certified letters? If so, that constitutes a validation demand and they are supposed to cease collection attempts until they supply you with proper validation.

But the bottom line is as co-signer you will be on the hook for this. You will end up having to sue the primary loan holder to recover.