Auto Loans car loan co-sign & primary loan signer death

[nickhead007]

My fater co-signed for a auto loan in 2002. The friend that my fater signed for the loan around 2005, and has since died in 2007. He has recently been contacted by a collection agency. The agency is trying to collect 13500$. This fee includes lawyers fees. Does he have any rights seeing that the primary signer of the loan is decesed. Thank you for your response. By the way , the vehicle is a 1996 Ford Explorer. 13500$ INSANE

 

[Michael Wechsler]

My fater co-signed for a auto loan in 2002. The friend that my fater signed for the loan around 2005, and has since died in 2007. He has recently been contacted by a collection agency. The agency is trying to collect 13500$. This fee includes lawyers fees. Does he have any rights seeing that the primary signer of the loan is decesed. Thank you for your response. By the way , the vehicle is a 1996 Ford Explorer. 13500$ INSANE

Unfortunately your father has a problem. Chances are the loan agreement says that they can go after him too as a co-signer. But is he a co-signer or a guarantor? You need to look at the agreement to see if the company must first proceed against the "primary" signator. Chances are they don't have to.

With regard to the amount of the debt, what if it was $9000 back in 2004 they are out? It's not the value of the vehicle they care about but the amount of money they are out trying to collect. I'm really sorry to hear about your father but those are the facts... good luck.