You should consider the following rights as a co-signer:
The right to be informed: The lender must provide you with a copy of the loan agreement and other important documents. These documents will outline your rights and responsibilities as a co-signer.
The right to revoke: In many cases, you have the right to revoke your co-signer status within a certain period of time. This period is typically three days, but it can vary from state to state.
The right to cure the default: If the primary borrower defaults on the loan, you have the right to cure the default by making the payments yourself. This will bring the loan current and prevent the lender from taking action against you.
The right to sue the primary borrower: If you have to make payments on the loan, you have the right to sue the primary borrower for reimbursement. You may also be able to sue the primary borrower for damages, such as loss of credit score.
The right to have the vehicle repossessed: If the primary borrower fails to make payments and you are unable to make the payments yourself, the lender may repossess the vehicle. You will not be able to get the vehicle back unless you pay off the loan in full.
The right to bankruptcy protection: If you file for bankruptcy, you may be able to discharge the debt you owe as a co-signer. However, this will depend on the specific circumstances of your case.
If you are considering co-signing a loan, it is important to understand your rights and responsibilities. You should also weigh the risks involved before you make a decision.
