Settling On a Repossession
Steven co-signed on a car loan. Now that the car's been repossessed, can he settle with the collectors for half?
QUESTION: Steven co-signed for someone to get a car, and it got repossessed. The balance is $9,300 and it’s been sent to collections. The person he co-signed for won’t work with him or pay up. Can he pay half?
ANSWER: That’s how co-signing usually ends; with the relationship damaged and the bill not paid. They won’t go after her because they knew she wouldn’t pay in the first place. Offer half of the $9,300 as settlement in full. It may take a few months to get them to take it, but when you do, get it in writing. They can go after her if they want to, but they are not shocked that the car got repossessed. They knew she wouldn’t pay. Remember to NEVER co-sign on a loan in the future.