‘m sorry if this is a long story. I’ll try to keep it short.
Basically, before I met my husband, my husband co-signed on two credit applications with his friend Chris. Chris was his employee at the time. My husband was mislead by the co-signing process. He understood he would be a reference, but he had no idea that his credit would be affected or that he would be responsible for these debts. One account was for a car, another account was for an engagement ring. My husband was angry about being named as a co-signer, but Chris made regular payments, until my husband and Chris had a falling out. Basically, this Chris guy did several horrible things to him and to me (I had met my husband by this time). Chris stopped paying. My husband got deployed, and he is currently deployed. Since he has been deployed, he has never made any payments at all. The car was repo’ed. I am getting letters and calls from collections agencies wanting $6000 after auction for the car and $2000 for the ring. We don’t have this kind of money right now. I called Chris, and he said he would make payments. This was last month, and I called and neither have had payments made on them. I called again, but now he isn’t answer. My husband’s deployed and he can’t take care of it. He agreed to pay the bills, and he agreed that if he couldn’t he would let us know. In short this guy has an alcohol problem. My husband and I have no idea what to do. Should we take him to small claims court and sue him over this? What are our options? We don’t have $8000 offhand, and we don’t want to make payments on a car and a ring that we will never see or have. What is there that we can do?
Originally posted 2009-08-27 19:43:34.
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Due to the fact that your husband is currently active duty, you qualify for certain programs under the Servicemembers Civil Relief Act (SCRA)
Example:
6% Interest Rate. If a service member’s military obligation has affected his/her ability to pay on financial obligations such as credit cards, loans, mortgages, etc., the service member can have his/her interest rate capped at 6% for the duration of the service member’s military obligation. However, this ONLY covers debts incurred BEFORE entering the military (this would be your joint accounts or his accounts).
Other areas that are covered include, rent, installment contracts, mortgages, liens, assignment, leases.
You can find more information at this link…
Hope this answers your question
This answer probably won’t make you feel much better for this I’m so sorry. Perhaps, the only thing I can do is explain to you is this: NEVER loan money to family of friends. Basically when your husband cosigned with Chris (on the line below Chris’s signature) he agreed to pay these loans IF Chris didn’t pay them. At the time he and Chris were no doubt very close friends and he trusted Chris. If he hadn’t he would have never stood good for Chris on loans for a car and engagement ring.
The first sign of Chris not being able to afford the car or the ring, let alone a wife is he NEEDED a cosigner. There are cases SOME people who would NEVER do what Chris has done to your husband. I know several men who needed a second chance needing a cosigner. They proved themselves and quite successful today. These types are few and far between.
95% of the guys today are like Chris. Easy come. Easy go. He doesn’t care about his friendship with your husband, because #1 Chris doesn’t care about himself enough to care about others. #2 Chris will be a “Big L” (loser), until he makes up his mind to be a morally good person with integrity.
In other words a morally good person would do anything to keep their friendship with someone who had put their credit on the line for them. They also would be so appreciative of their friend fighting to keep our country safe at night while they sleep.
You can read the contract. Look and see if your husband signed as a cosigner or as a reference. If the collectors are calling you the wife, you can most assuredly ask them where can you go to get a copy of the original contracts. Now keep in mind, if your husband signed on the second line beneath Chris’s signature. There is nothing you can do. It’s true your husband is responsible for the $8,000.00. A contract is a lawful binding document. Your husband should have made Chris sign one between the two of them……….should your husband ever have to make payments Chris would have to pay him back. That’s the only way you could take Chris to Court,
If you can’t make these payments, perhaps you can speak to the Manager of the Dept. Tell them your situation. Ask for a reprieve until your husband returns. By law Collector’s can’t harass the deployed Military family. You didn’t sign it, therefore it’s not your problem.
I would remind the Collector my husband is deployed and that you have his papers to prove this. Therefore, you want to know where to send the proof, so they will leave you alone, until your husband returns home safe from fighting for OUR COUNTRY. This is where you do have the law on your side.
When your husband returns. He most assuredly will be responsible, but there are ways to work with these companies or he may not care if his credit shows this. Many times this doesn’t hurt ones credit, as it shows as a cosigner. When your husband applies for credit, he should be up front about the mistake he made with Chris. It will show up he was only the cosigner. The only thing sinker is it does increase your interest rate when you have a low credit score.
I’m not sure, but when it comes to the ring. Your husband may can make Chris return the ring or the value of it. It’s not like it’s a car.
Bottom line. Never loan money to or cosign with Family of Friends! If you do get in writing their signature they will pay you back. With this you can take them to Court.
Wish I could have given you more hope. Perhaps, these are some things you didn’t know, especially about your husband being deployed with the Military. No one can harass family or him. Remember that. In fact it’s against the law for them to continue to do this you. However, you’re responsible for making sure they know in writing where your husband is. How much trouble could be copying his deployment papers be and find out who to mail them to? Send a copy to friend Chris, as well.
Now see!! You don’t have to worry anymore. Aren’t you glad you asked the question?
Blessings to you and your husband