Cosigning on a loan now in collections

by Amanda
(Alma Ga.)

I cosigned on a loan with a person over six years ago and no longer have contact with this person and now I have a company trying to take a lien out on my property!!! I have no idea where this person is and the company says the loan is from 2004 but if my calculations are right I didn't even associate with this person then, I firmly believe the loan company renewed the loan in 2004 without my consent of putting my name on it again, I DO NOT recall signing any loans for this company in 2004!!! The company is since closed down and I don't know where to get the original paper work, they are telling me I have to pay it or they are going to take a lien out on my property if I don't give them information on how to find this person. Can They Do That??????

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Dec 16, 2010
"Cosigned" loan in collections
by: Gerri


You are right to be cautious here. It could be that this is a debt buyer trying to find a way to collect on a debt that is too old. Please follow our advice in Debt Collection Answers (you can read the first chapter of Debt Collection Answers online for free) and request verification of the debt.

While you are awaiting that verification, I recommend you talk with a consumer law attorney. While you may have cosigned the debt longer than six years ago, the statute of limitations may run from the date the loan went into default, which may have been more recently. You need to double check that.

There's a good chance that this collector is simply trying to pressure you into paying this debt, so do your homework and don't be afraid to stand up to them. They can't place a lien against your property unless they take you to court (and that threat alone may be illegal). If it gets to that point, you can always go to court and challenge their lawsuit if they don't have adequate documentation.

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