I co sign for a person & they couldn't make the payments could the business take the money from my checking a

Question

I co-sign for a friend the friend could not pay the loan & neither can I My question is Can the company take the Money from my checking account ?

Answer 1

They would try to get the money from your friend first, but as the co-signer you are just as responsible for repaying the loan as your friend is.

Depending on the type of loan, I doubt they would resort to taking money from your checking account, but they can send you bills and it will affect your credit because it is an unpaid/late loan.

Answer 2

When you co-signed you put your name on a paper swearing that you would take responsibility for the debt in the event that the person you signed for didn't honor their payment agreement. Therefore, yes you are responsible for the debt when all is said and done. It is pretty risky co-signing for a person, that is why it is usually parents that co-sign for their kids to help them get a start with establishing good credit. But, you should remember that if a person in general needs a co-signer then that means that the credit company doesn't trust them to do it and will only consider it if the person has someone else to guarantee the payments. That was you, I would advise you to get hold of that person and get them to pay as soon as possible or you will be left holding the bag. If they don't pay; then this bad experience will at least prove to be a valuable lesson in life.

Answer 3

If you have your checking account and your loan at the same Bank, I strongly suggest that you close your checking account and put it in a different Bank. The only way then is to get a Judgment against you then they can go into any Bank to take the money.

Answer 4

there is almost never a good reason to co-sign.

its almost always because the person wants a luxury they cant affortd.

how can anybody put themselves in a position of getting luxury for someone who cant afford it is beyond me.

those people need to learn to save to buy those, rims, stereos, nicer car than they can really afford, etc...

sorry man, you are potentially very screwed and you , yes you owe the money just as much as the borrower (legally anyway). so now its just a matter of who the lender can see has money, or at least a job, to repay the loan.

Answer 5

No! They can't TAKE the money that way, but they sure can sue you for it! They can hassle you over it. They can ruin your credit over it!

NEVER, EVER, EVER co-sign for a loan! And if you ever do, DO NOT lie to yourself that as long as the company can't dip into your account then you're okay. You are FAR from okay, my friend. They own you! The Bible says that the borrower is a SLAVE to the lender. YOU by co-signing VOLUNTEERED to be the slave for this ... "person." Smooth move!

Answer 6

Yep

By co-signing a loan that makes you responsible in the event your friend defaults on loan.

It is a tough lesson to learn and it hurts our feelings and our credit.

Hope you can resolve this with your friend.

Answer 7

Yes. That's the reason companies want a cosigner. They don't trust the person applying for the loan because their credit is so bad.

Check out the FTC website.

Answer 8

Yes. They would first have to go through a formal procedure where the business would present evidence to the court and have a judgment approved so that they could garnish a portion of your paycheck.

Answer 9

They will go to your friend then you are next because you co-sign your friend's loan.

Answer 10

They can choose to go after either one of you. Since you co-signed, that means you have the credit and the money. So they'll probably come after you!