What should i do?

[Pelon]

I co-signed for a car for my now x-girlfriend. She has not made a payment in like a year. They are coming after me now. I received a letter stating that i owe them $11,506.06. I do not want to pay but i understand that i am their target now. She called the bank & told them to pick up the car as a repo but they do not want it. It is a 2004 Daewoo Laganza. They called me at work before & threatend me with check garnishments. I am scared & do not know what to do. Can someone help me on what i should do next. The letter i received recently says that i have 30 days to reply in writing or calling them. I live in Arizona. Is there any way around this. I was thinking of filling for bankruptcy but i really don't want to. Help me.

Angel

[Methuss]

First, is this a collection agent or the original creditor that is calling?

Unless you signed a wage assignment (which would be illegal in a motor vehicle sale) no one can garnish your wages without a court order. If a collection agent made such a threat, they just did an FDCPA violation. If it was the OC, well, the only rules affecting them are unfair and deceptive trade practices.

First, they will repo the car. That's a given, but they are trying to scare you into paying for it. Once they repo the car they may try to come after you to pay the balance. Don't fall for this. They can only make you pay the difference between what they sell the car for and the remaining balance of the loan.

I personally would consider sueing your ex-girlfriend for the damages she has caused. Just because you co-signed, does not mean you can't recover damages for her willful negligence in handling this car note.

Your other option is to have her deliver the car to you, sign it over, and sell it to recoup most of your losses before the finance guys get their hands on it. Repo cars go into auction where they rarely sell for their real street value.

[efish]

Pelon,

Unfortunately, you were a co-signore, which makes you equally repsonsible. If you have a much better job, or they have an easier time contacting you, that is probably why they are going after you. I would call or write the company and make sure they have all of her information and good contact phone numbers, so they can at least try and get ahold of her. Also, make sure they know she has they car. How are they going to repo it from you if she has it.

Tell them the next time they call you that you do not wish to be contacted at your work. Tell them it is harrassment and if they contact you again you will sue them, because they are violating your rights. I would however, suggest that you write them a letter anyway with all of the things I suggested up top. They cannot harrass you. Also, note in your letter that you only wish to be contacted in writing. Go to the sample letters section to get a good idea. It will get better, I promise if you just listen to the folks on this site and do your homework.

[Methuss]

I guess the thing that bugs me most about this is the sheer number of people that co-sign on car loans for girl/boy-friends, they break up, and the co-signer gets stuck with the bill. I don't understand why people get suckered into this. If it is the other party saying "you don't love [or trust] me unless you co-sign" then that's not a healthy releationship anyways.

[reno2360]

Unfortunately the ex-girlfriend cannot "sign" the car over to him as she does not own it. You don't really own the car until you have the pink slip. She cannot obtain that until the loan is paid off as the lienholder has it.

This big lesson here is never to co-sign anything. He should sue her though as it really is a low life move to leave this guy hanging with a huge bill like that.

[Pelon]

I agree on the co-signing thing. it was a mistake but i really felt sorry for her & at the time she had a great job. My gut feeling told me not to but i did anyway. The people contacting me are the collection agency. they sent me a letter that says to respond within 30 days. We have called the bank & told them that we cannot afford it & to see if they can pick it up. They sent someone out to look at it but nothing ever happened after that. They told her that if we didn't want it, they would pick it up & write it off i guess but nothing. At this time the car is not running but she told me that she wants to fix it then she can start paying on it since she has no vehicle but she cannot afford it at the time. I am stuck, i don't know what to do. So from what i understand, i can sue her then?

[reno2360]

I was repeating the suggestion from another reply. If I was you I would seek out the free consultations offered by most attornies and grill them with questions. I would think you would need to check with an actual attorney about suing her for any damages caused to you by being held responsible for the car payments not being made.

If the car is repossessed, it will not just be "written off". You will then be liable for interest, the payments and the cost of the repo. If repo'd your car will be auctioned off and you will still be responsible for the remaining balance. If this car isn't running they will not get much for it and they don't really care. You are a long way from getting of this. Please check with an attorney on how to best handle it. For a balance that big you will most likely be sued.

By the way, this car is so new, why is it not running? Are the repairs perhaps covered by warranty?

Good luck and don't delay.

[Methuss]

Unfortunately the ex-girlfriend cannot "sign" the car over to him as she does not own it. You don't really own the car until you have the pink slip.

Not true. The title is in the owner's name, not the bank. The finance company is only a lienholder on the property. It is still YOUR property. How do you think you trade in a car that isn't paid off at a dealership? They are just doing all the paperwork for the transfer that anyone can do at the DMV.

Also since this is a collection agency you can get a short repreive by sending them a DV notice. They have already violated the FDCPA by threatening garnishment when they have no legal ability to do so. In your DV letter tell them that you will record any and all telephone calls. That will stop them from calling you as most CAs won't take the risk. It also means that if you call them you can record without saying anything on the phone about it...since they already have the notice of such intent in writing.