What legal recourse do I have if I took out a car loan for a relative and they refuse to pay and will not surrender property?

UPDATED: Jan 9, 2012

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What legal recourse do I have if I took out a car loan for a relative and they refuse to pay and will not surrender property?

Asked on January 9, 2012 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

if you do not have a written agreement with the relative that you obtained a car loan for and the relative refuses to pay the lender and refuses to surrender the security, your recourse is to pay the lender directly and then sue the relative who has the use and benefit of the car. Your causes of action would appear to be for breach of contract, common counts and declaratory relief regarding the obligation to the lender.

Before you do this on your own, I recommend that you consult with an attorney who practices in the area of consumer loans first.

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