Hello All This is for one of my friends. He had cosigned for a loan with his girlfriend(Now ex) for a Dental procedure back in May 2006. She was responsible for making the payments and was doing so till they were together. He had broken up with her in April of 2007 and has not been in any contact with her since then. Recently he found out on his credit report that this account as been flagged as potentially negative item as she had contacted a Debt Consolidation Agency for this account. The amount is around $4800. The problem is he does not even have any paperwork or anything related to this and he has no contact with his ex for the past 4 years.His credit is very good and he is close to applying for mortgage loan and thats when this came up. Will he be able to get this removed from his credit profile as his ex is the primary account holder on the account or is he stuck with this. I suggested him to start disputing the account with the credit agencies but not sure how to approach this or should he contact the debt consolidation company and try to get things sorted with them and have this removed from his account. Looking forward for your suggestions.
If he actually consigned the loan, he's legally just as much on the hook for the debt as his ex is. Sorry. For anyone else reading this, this is a good example of why you should never cosign a loan- especially for a girlfriend/boyfriend!
Well...my buddy moved much faster than I thought...He called up the Creditor and settled the account for $2550 and the creditor will remove the bad remarks from the account and close it for Paid as Agreed.. But then recently I came across this thing called Pay for delete. I did not know that they can delete the account itself from the credit profile. I know lot of folks said this will work only before paying. Now that he as paid, can he still write them a letter to get the account removed at least from his credit profile since it was him that had paid to close the account. Any chance of this working???
Sorry once again...since he's already done the deal and paid, it's unlikely they'll be willing to make any further changes or remove the account completely. It sounds like they've agreed to close and then update the account as "Paid as Agreed", so he should be fine as long as there are no other negative marks or late pays that show up on his credit reports. "Paid as Agreed" is the best status you can have on a credit report.
