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No, the cosigner may be the first one the lender attempts to collect from if the primary borrower defaults. That will probably be the only "warning" one receives.

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โˆ™ 2005-04-24 01:00:12
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Q: Is the lender obligated to notify a cosigner if a payment is past due in the State of Wisconsin?
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What is the difference in a cosigner and a guarantor?

A cosigner signs the debt agreement and the lender can demand payment from both the debtor and the cosigner. A guarantor does not sign and the lender needs to go through the debtor before demanding payment from a guarantor.


Why do it have to affect the co-signer when its your debt?

Because the cosigner guaranteed the to pay the loan if you do not. You fail to make a payment and the lender will be looking at the cosigner for the payment. You not only have an obligation to the lender who lent you the money but to the cosigner who also signed his name to the loan agreement.


Does the lender have to notify the cosigner if the person responsible does not make a payment?

In some states yes.


Does the lender have to notify you as a cosigner if the primary borrower fails to make a payment?

No, but if the borrower misses enough payments, the cosigner will start getting collection calls as well.


Can a cosigner ask a lender to garnish the wages of the primary borrower?

A lender can't garnish wages; that has to be done by court order. That can be accomplished, but usually only after the lender has made the cosigner responsible for the debt and failed to collect. After all, that's the responsibility of being the cosigner -- to provide payment should the primary borrower fail to pay.


Is the cosigner of a vehicle liable if the it gets repossessed?

Yes. That is the point of the lender asking for a cosigner. The cosigner will have a repossession showing on their credit as well as the primary lender.


Can you be sued in case of an accident as cosigner?

No. The only obligation the cosigner has is to the lender.


Can a lender call the home number of a cosigner in order to verify the information of the cosigner?

YES!


If a cosigner has died and the primary borrower defaults is the cosigner's estate obligated to pay the debt?

Creditors/lenders will attempt almost anything to collect a debt. It is unlikely that a lender could place a claim against a deceased cosigner's estate and be awarded a judgment. But, there are no certainties in the murky creditor vs. debtor arena.


Does the cosigner need to be contacted when the owner stops making payments?

Under federal law, I don't believe the lender has any obligation to contact you as soon as the borrower misses a payment. You need to ask the lender to do it, and get this in writing.


How and where do you add a cosigner on a loan?

The cosigner must be present at the time the contract is signed. Before a cosigner is accepted by the lender him or her must meet the lender's requirements which will include a check of their complete credit history, employment status, etc.


How should you be contacted if the car you cosigned on is being sold?

In a few states both the primary borrower and the cosigner must be notified by the lender through a "Right To Cure" notice before repossession action can occur. In Wisconsin a replevin order is necessary before a repossession can take place, but the cosigner is not always notified. In the majority of states the lender does not need to give either the primary or the cosigner notice of repossession action.

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