Cosigned for a Private Loan - Borrower Lied on Application

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KEann1

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My question involves collection proceedings in the State of: NY

I cosigned for a student loan for someone who told me they were going to apply to recoup some of the money they spent out of pocket for a previous semester. The story if very long and complex but they are in collections now. I recently looked at one of the applications she filed and realized that she lied about being a student on the application. She created a false class schedule and used that as part of the application. This is for a semester that is almost a year after she graduated. The loan company approved it without verifying she was even a student. Do I have a case against the loan company for approving this loan just based on a schedule she created on her computer? Don't they have an obligation to verify an applicant is in fact a student? SInce they never verified she was a student, she wouldn't have been approved. Can I file a police report against her for fraud and get removed from the loan that shouldn't have been 1given out?
All help is appreciated.


Here is a much longer version of the story as well

I8co-signed on some student loans for my best friend who used it for "medical expenses" for uterine cancer. She showed me copies of her CD accounts that had money in them but she couldn't cash in at the time for various reasons. one of them having to do with a court case having to do with her father who supposedly raped her but he was suing her and she was counter suing. There are about 18 of us who wholeheartedly believed her. Well the loans came due and I would get a call and I would call her because the companies weren't calling her. I would receive a call with her in my apt and her phone would not ring. She worked things out with the loan companies or so I thought with medical forbearance. I do not know how much of anything that was said to happen between the loan company and my friend actually happened.

I know I co-signed for her and am legally responsible. I am hoping to work out a deal with the loan company and perhaps have all late fees waived and have the loans consolidated. I would also like to go after her to recover my damages. She owes me more than $8,000 on top of the loans. We have been told by her mother that she never had cancer, nor did her father do anything to her. She is seeing a "mental health expert" according to her mother. I have the supposed police report from what happened as well as her supposed bank records of the CDs she was going to use to pay off the loans. I also have a copy of one of her medical invoices. I know this is incredulous and I'm sick over it. Her ex-boyfriend who has known her since they were little kids even still believes her.

My credit was impeccable before this and I need to make it all right. I am heartbroken that someone I love who is like a sister, could do this to me. It would actually make a great 48 hours case. There is so much more to the lies and deceit too.

I have to add that it wasnt just a matter of believing her, I watched her inject herself with a chemo pack and wear a heart monitor. She had bottles of pills up to date written to her from pharmacies. I took her to the hospital for treatments. We all did.

I called the loan company and the loans are with collections agencies. I spoke to a woman on one of the loans that said she would be able to reduce it and work with me on the amount, but I have to pay it all at once or else the company will take me to court and have my wages garnished. I told her I was willing to make payments and wanted to make this right but she said her company doesn't accept payments. I don't have the money to pay these loans off all at once. She told me to use my Credit Card, I told her I couldn't do that though. She actually called my Aunt about this which I think is illegal because when my aunt asked what it was about she told her she wishes she could tell her but federal guidelines prohibit it. I don't think they are allowed to call anyone, especially since I haven't lived at that number in over 12 years. As I said I know this is a lot and I didn't want to pull you into my stupidity again, Mike made me realize it is my best option. . . I will be in and out of training all evening. If you know of an attorney that I can call about this, or if you have any advice, it would all be appreciated. I just want to make it all right and I realize I am really really stupid for caring so much about others.

I found one of her applications in my office and she told me she was able to get approved from this company by providing previous records from school showing when she attended and use the money for past expenses. Well i was looking at her paperwork and she made up a schedule showing she was attending classes for a semester almost a year after she graduated. She was approved for a loan for bachelor's classes after she had her bachelors degree. They never verified that she was a student.
 
Do I have a case against the loan company for approving this loan just based on a schedule she created on her computer? Don't they have an obligation to verify an applicant is in fact a student?
No, and no. They approved this loan because you co-signed. That, not the fact that they thought she actually was a student, was their security.
Can I file a police report against her for fraud and get removed from the loan that shouldn't have been 1given out?
You can file a police report, but that will not get you removed from the loan. You can only be removed with the consent of the lender or by court order, and you are not going to get either. Your recourse is against the borrower.
 
You didn't verify anything either when you co-signed. It would have been prudent of you to do so, since you were putting your good credit on the line.
 
You're right I didn't, but I wasn't the one who requested a student schedule for proof of student status. I was also told the loan was for prior semesters. If she couldn't have been approved based on that, then I would never have signed for it.
 
You're right I didn't, but I wasn't the one who requested a student schedule for proof of student status. I was also told the loan was for prior semesters. If she couldn't have been approved based on that, then I would never have signed for it.

So the lender made a bad loan, it happens all the time. You made a bad decision as well by cosigning for another person's debt.

This is an expensive lesson for you to learn but hopefully you never ever cosign for anyone ever again. Legally you are responsible for this debt.
 
The person that used phony documents to get the loan, may have committed fraud.

I'd contact the nearest US Attorney's Office and speak with them. Bring your documents, and see what happens.

People that do what this person is alleged to have done are also defrauding the Feds and taxpayers. Drop a dime on this thief, don't let her walk while you are made to pay.


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