Banking question/ co-signer related

[beautybelle]

I have a question and I think I already know the answer but I just would like ot hear it form somebody else who knows more than I do about banking.

Heres what happened: My bff took out a loan about 3 years ago in the amt of 20,000.00 to pay off some hospital bills and her cousin co-signed for her. My bff found out today that the cousin paid off the loan a few days ago and didnt tell her that she was going to. "Rita" found out because she went to the bank to pay the payment today and they told her that it had been paid in full.
"Rita" called "Barb" to find out about it and "Barb" tells her that the bank had been sending her late notices, etc. in the mail and that she just wanted it "behind her".
OK here is what "Rita" asked me today. She asked me if she was still responsible to pay the loan to "Barb" instead of to the bank. "Barb" told her that she now held the bank papers and was responsible to pay her and if she didnt there would be trouble.
"Rita" told me today that she didnt ask "Barb" to pay off the loan and that she would still pay "Barb" but she didnt like the idea of "Barb" calling her and threatening her with "trouble" if she didnt.
I told "Rita" (and again thats why Im asking you guys cause Im not expert in banking) that I didnt think she was legally responsible for that loan anymore and that "Barb" couldnt hold that over her head since "Rita" didnt sign the loan agreement with her it was with the bank. Was I right?

 

[bumbershoot]

Probably shouldn't answer it b/c I'm not in banking nor am I a lawyer, but I think it would be reprehensible for Rita to NOT pay Barb back, when Barb paid RITA's medical bill loan!

When you co-sign, that loan goes on your credit, too. This loan, and it being behind in payments, was slogging down Barb's credit report and ability to get new credit. I can understand why Barb wanted it gone.

Rita would have paid the bank, right? So now she gets to pay Barb. I bet Barb charges a lot less interest than the bank was charging!

 

[Belle0101]

I have a question and I think I already know the answer but I just would like ot hear it form somebody else who knows more than I do about banking.

Heres what happened: My bff took out a loan about 3 years ago in the amt of 20,000.00 to pay off some hospital bills and her cousin co-signed for her. My bff found out today that the cousin paid off the loan a few days ago and didnt tell her that she was going to. "Rita" found out because she went to the bank to pay the payment today and they told her that it had been paid in full.
"Rita" called "Barb" to find out about it and "Barb" tells her that the bank had been sending her late notices, etc. in the mail and that she just wanted it "behind her".
OK here is what "Rita" asked me today. She asked me if she was still responsible to pay the loan to "Barb" instead of to the bank. "Barb" told her that she now held the bank papers and was responsible to pay her and if she didnt there would be trouble.
"Rita" told me today that she didnt ask "Barb" to pay off the loan and that she would still pay "Barb" but she didnt like the idea of "Barb" calling her and threatening her with "trouble" if she didnt.
I told "Rita" (and again thats why Im asking you guys cause Im not expert in banking) that I didnt think she was legally responsible for that loan anymore and that "Barb" couldnt hold that over her head since "Rita" didnt sign the loan agreement with her it was with the bank. Was I right?

As far as the bank is concerned, the terms of the loan have been fully met. For legal purposes, the loan no longer exists. It was "Barb's" choice to pay the loan in full at this point.

To the best of knowledge, gleaned from the original post, "Rita" does not owe "Barb" one single red cent.

Morally speaking? That's a different question altogether and one that wasn't asked so I won't address that.

 

[beautybelle]

Well I dont think (and this is second hand info so Im not 100% sure what goes on in another persons mind) Im just going on what she told me but, from what she says I dont think shes going to NOT pay Barb back. Rita knows she owes the money. Im thinking she just wants to know what her LEGAL responsibilities to Barb are in case of "trouble".

 

[Belle0101]

Well I dont think (and this is second hand info so Im not 100% sure what goes on in another persons mind) Im just going on what she told me but, from what she says I dont think shes going to NOT pay Barb back. Rita knows she owes the money. Im thinking she just wants to know what her LEGAL responsibilities to Barb are in case of "trouble".

I would probably suggest, to circumvent any future troubles, that the two sit down together and draw up a payment plan - payment of $$ is due by the XX of each month, with last payment being [date]. Then I'd have them both sign it, maybe have it notarized, and each have a copy.

That should go a long ways towards hurt or misunderstood feelings in the future.

 

[allison443]

I have a question and I think I already know the answer but I just would like ot hear it form somebody else who knows more than I do about banking.

Heres what happened: My bff took out a loan about 3 years ago in the amt of 20,000.00 to pay off some hospital bills and her cousin co-signed for her. My bff found out today that the cousin paid off the loan a few days ago and didnt tell her that she was going to. "Rita" found out because she went to the bank to pay the payment today and they told her that it had been paid in full.
"Rita" called "Barb" to find out about it and "Barb" tells her that the bank had been sending her late notices, etc. in the mail and that she just wanted it "behind her".
OK here is what "Rita" asked me today. She asked me if she was still responsible to pay the loan to "Barb" instead of to the bank. "Barb" told her that she now held the bank papers and was responsible to pay her and if she didnt there would be trouble.
"Rita" told me today that she didnt ask "Barb" to pay off the loan and that she would still pay "Barb" but she didnt like the idea of "Barb" calling her and threatening her with "trouble" if she didnt.
I told "Rita" (and again thats why Im asking you guys cause Im not expert in banking) that I didnt think she was legally responsible for that loan anymore and that "Barb" couldnt hold that over her head since "Rita" didnt sign the loan agreement with her it was with the bank. Was I right?

I guess Barb didn't like the idea of Rita making late payments and messing up Barb's credit, when Barb did her a favor...

Since Rita said she is going to make the payments anyway (as I agree she should) what does it matter whether she is legally responsible. The only reason to ask about that is to get out of paying, isn't it?

Team Barb!! lol

 

[allison443]

I would probably suggest, to circumvent any future troubles, that the two sit down together and draw up a payment plan - payment of $$ is due by the XX of each month, with last payment being [date]. Then I'd have them both sign it, maybe have it notarized, and each have a copy.

That should go a long ways towards hurt or misunderstood feelings in the future.

I think this is very good advice, but it sounds like Rita is looking for a way to get out of paying, doesn't it?

 

[Polyluvr]

I'd tell Rita to call a lawyer~ if Barb threatened me; Barb wouldn't see one red cent from me.

And no, if Barb didn't have Rita sign a promissory note prior to paying off the loan~ then Barb is out of luck

Barb sounds like a real caring individual ~ winner, winner chicken dinner.

 

[beautybelle]

Morally speaking, I know it wouldnt be right to just up and not pay it back and YOU know it wouldnt be right to not pay it back and I feel like Rita knows it wouldnt be right, so now that we've got that part out of the way.....

Heck I dont know what her intentions are Im just relaying to you what she told me, but I Dont think shes trying to get out of paying it. From what I know about her I dont think she would do that unless Barb continues to throw it in her face and if that happens then Im not so sure what Rita would do.

This is literally everything she told me in regards to paying Barb back.
"Im planning on paying her back because I owe the money but I didnt like her threatening me about it" and the few other things I mentioned earlier.

The only reason Im asking here about it is because I wasnt exactly sure if what I told her was right or not and needed to hear someones elses input that knows more than I do about banking (which isnt much to be honest) but from what you guys have said I think I was on the right track. Thanks.

 

[Belle0101]

Morally speaking, I know it wouldnt be right to just up and not pay it back and YOU know it wouldnt be right to not pay it back and I feel like Rita knows it wouldnt be right, so now that we've got that part out of the way.....

Heck I dont know what her intentions are Im just relaying to you what she told me, but I Dont think shes trying to get out of paying it. From what I know about her I dont think she would do that unless Barb continues to throw it in her face and if that happens then Im not so sure what Rita would do.

This is literally everything she told me in regards to paying Barb back.
"Im planning on paying her back because I owe the money but I didnt like her threatening me about it" and the few other things I mentioned earlier.

The only reason Im asking here about it is because I wasnt exactly sure if what I told her was right or not and needed to hear someones elses input that knows more than I do about banking (which isnt much to be honest) but from what you guys have said I think I was on the right track. Thanks.

You're welcome. I hope they can work something out so there won't be any hard feelings.

 

[beautybelle]

I hope so to. I love them both and they're family so its hard when money comes up especially in situations like that.
Thanks again for the help. Goodnite everybody.

 

[RNMOM]

She needs to pay that money back no question but I would do it with some documentable form of payment. Keep her checks, or use something that has a receipt so she has proof of payment. You never know what can happen in the future and she should plan to keep this documentation forever.

 

[PaulaSB12]

I have a question and I think I already know the answer but I just would like ot hear it form somebody else who knows more than I do about banking.

Heres what happened: My bff took out a loan about 3 years ago in the amt of 20,000.00 to pay off some hospital bills and her cousin co-signed for her. My bff found out today that the cousin paid off the loan a few days ago and didnt tell her that she was going to. "Rita" found out because she went to the bank to pay the payment today and they told her that it had been paid in full.
"Rita" called "Barb" to find out about it and "Barb" tells her that the bank had been sending her late notices, etc. in the mail and that she just wanted it "behind her".
OK here is what "Rita" asked me today. She asked me if she was still responsible to pay the loan to "Barb" instead of to the bank. "Barb" told her that she now held the bank papers and was responsible to pay her and if she didnt there would be trouble.
"Rita" told me today that she didnt ask "Barb" to pay off the loan and that she would still pay "Barb" but she didnt like the idea of "Barb" calling her and threatening her with "trouble" if she didnt.
I told "Rita" (and again thats why Im asking you guys cause Im not expert in banking) that I didnt think she was legally responsible for that loan anymore and that "Barb" couldnt hold that over her head since "Rita" didnt sign the loan agreement with her it was with the bank. Was I right?

Why was "Rita" paying the loan late so often? Did she feel comfortable wrecking the credit rating of her cousin?

 

[Carly_Roach]

Rita has learned a hard lesson: don't co-sign for a loan unless you are comfortable paying that loan yourself. While it would be morally correct to pay Rita back for paying off the loan, Barb isn't legally responsible to do so. Hopefully Rita is in a position to take the loss; especially if Barb is the sort of person who wants Rita to tiptoe around her if Rita expects to see any of her money back.

Sorry, but Rita is out the money. Paying off the loan was the only way Rita could maintain her own decent credit rating so, in essence, she was purchasing something: an expensive lesson about co-signing for loans for other people.

 

[JustCallMeMommy]

Legally speaking, I don't think Rita owes Barb anything.

Ethically speaking, I think it really sucks that Rita put Barb into that position. Barb did her a favor by cosigning, and she repaid her by attempting to ruin Barb's credit. Paying Barb back, at the same interest rate that Rita was paying the bank, would be the RIGHT thing to do.

 

[mtemm]

Rita sounds like quite a prize. Sounds like Barb did what she had to to protect her own credit rating, and now she will likely be out a good deal of money because of Rita. The fact that Rita is even contemplating not paying the money that Barb helped her with in her time of need is reprehensible. Am guessing it will be an expensive lesson learned for Barb.

 

[pioneer89]

Rita sounds like quite a prize. Sounds like Barb did what she had to to protect her own credit rating, and now she will likely be out a good deal of money because of Rita. The fact that Rita is even contemplating not paying the money that Barb helped her with in her time of need is reprehensible. Am guessing it will be an expensive lesson learned for Barb.

I agree. I like how Barb is suddenly the 'bad guy' after doing two huge favors for Rita. (Co-signing the loan, then paying it off to protect Rita's credit rating.)

 

[tlbwriter]

Rita sounds like quite a prize. Sounds like Barb did what she had to to protect her own credit rating, and now she will likely be out a good deal of money because of Rita. The fact that Rita is even contemplating not paying the money that Barb helped her with in her time of need is reprehensible. Am guessing it will be an expensive lesson learned for Barb.

Agree, especially with the bolded. Threatening not to pay her back "because she's throwing it in my face" is simply inexcusable, and she doesn't sound like the kind of person I'd want as a friend, let alone a "bff."

 

[allison443]

I agree. I like how Barb is suddenly the 'bad guy' after doing two huge favors for Rita. (Co-signing the loan, then paying it off to protect Rita's credit rating.)

I agree!

 

[allison443]

Agree, especially with the bolded. Threatening not to pay her back "because she's throwing it in my face" is simply inexcusable, and she doesn't sound like the kind of person I'd want as a friend, let alone a "bff."

Yes, OP, my advice is don't ever cosign a loan for you bff Rita!