Can a co-signor on a car loan report the car stolen if the other signer runs away with the car?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a co-signor on a car loan report the car stolen if the other signer runs away with the car?

I am 18 and defaulted on my payment 1 month. My dad co-signed on the car for me and so the default affected his credit as well as mine. I am caught up on my payments now and this is the first and only time I have/will default. I am very good about making my payments on time, but because of this incident my dad has removed items out of my engine in order for the car to not start. I’m getting the car fixed and then taking it and continuing to make the payments. Is my dad able to report the car stolen? Does he have the right to sell the car without my consent?

Asked on April 13, 2012 under Bankruptcy Law, Missouri

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The co-signor on the loan that you have where you have the main repsonsibility for making payments on it does not have the contractual or legal right to report the vehicle stolen if in fact it was not unless you have a separate agreement in writing allowing such. Likewise, the co-signor does not have the right to sell the car without the primary borrower's consent and the consent of the lender.

If you take the car that you are making payments on where you are the person primarily obligated under the loan for it, there is no theft of the car from a legal perspective.

The obligation of the co-signor lies lies with the lender where if you fail to nmake payments on the loan and the primary borrower, the co-signor then is required to make up the payments. If that happens, the co-signor can then look at you for repayment with accrued interest.

 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption