Can I be held responsible if the terms of a loan were changed without my knowledge?

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Can I be held responsible if the terms of a loan were changed without my knowledge?

I co-signed for a friend a year ago; about 6 months ago she made a new deal with them which I am still not aware of what changes were made. At that time my friend told me that she was told that I did not have to sign anything and that I would be placed off the loan. I am now receiving phone calls notifying me that she is behind in payments and that I need to contact them ASAP. Can I be held responsible even though they changed the terms of the agreement without my consent?

Asked on September 28, 2011 under Bankruptcy Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

I am indeed worried for you and I think that the best thing that you can do is to get copies of all the documents involved here as soon as possible.  Arguably if the original document was re-negotiated then the old document is not in effect and the old liabilities - like you co-signing - is also not valid any longer.  But are you sure that she did not just sign your name to a new document?  What were the terms of the new document? Maybe only a rate change but all other changes remained in effect (I would fight that tooth and nail)?  Demand that they validate the debt - send documents, history of payments, document showing right to call you.  Good luck.


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