What to do if I co-signed a vehicle for my sister but later found out that it’s all in my name and she is behind in payments?

UPDATED: Jan 30, 2013

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What to do if I co-signed a vehicle for my sister but later found out that it’s all in my name and she is behind in payments?

I just recently found out that my license was suspended because there’s no proof of insurance on the car. She’s driving it and I was told that she shouldn’t be. Should I sue the dealership for not making sure it was a co-signed deal and how should I go about getting the car from her beause she’s not cooperating. She’s telling me that I have to pay her back all the money she paid on it. Is this true?

Asked on January 30, 2013 under Business Law, Florida


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Sounds like something hokey happened and illegal.  Did you sign where it said co-signer? Did you ensure it did and do you have a copy? If not, you need to inform the authorities this is a fraudulent transaction. You owe your sister nothing. If she was in on the fraud, you need to sue her, the dealership and insurance company for not ensuring you were notified or been given the option to act as a surety. Contact the entity who regulates the dealership.

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