My Mom co-signed a loan for my brother over 2 years ago at some ghetto local financing place. It was $800 to be paid back over a 48month period.. total owed was $2000. (It's not a secured debt, no collateral or anything like that.) My brother goes through jobs like most people go through toilet paper. Of course, he's been late in making payments more often than he's been on time. They're usually good about it.. they call and hound him constantly, and leave my Mom alone until he's at least a month behind. Then she gets a phone call, and she makes a payment. Well, they called yesterday to let her know that he was nearly 2 months behind. He'd told them he'd be in to make a payment, then never showed. Mom told them he'd hurt his knee and spent the morning in the hospital, but that she'd get ahold of him and see what's up. All was "normal." Then today, some big burly dude shows up at the door asking for my brother. He doesn't live here, and the loan place knows that. Mom asked what he wanted, and he said "Eric's 2 months behind on his loan. We need a payment today." Mom got scared and came in and asked me for the money to make a payment. The guy got the money and left. But the whole situation has my Mom scared.. and quite frankly, I'm not too comfortable with it either. No phone call beforehand, nothing. I'm afraid to even think about how the situation might have unfolded had I not been here to make the payment. The whole thing is quite unnerving. Are these people allowed to just show up at our door unannounced and uninvited? We're in PA if it makes a difference.
Your mom is the co-signer, not the borrower, and if the borrower fails to pay, she is on the hook. However, although they say the amount was not paid, and it may not have been paid, how can she know if that is even in fact true? She needs to be able to treat this obligation in an arms length manner, where if she is actually obligated to make a payment, she can first verify that that is the case. They are treating this as if they have a right to just reach into her pocket. Can a lender send someone to your door to collect? Yes. Probably, until you tell them not to. Can they use threats of any physical action to you or your property, whether direct or implied, to coerce payment? That would be assault, and maybe even strong-arm robbery, even if they have a legal right to sue you in court to collect. Can they use a burly dude, who is just intimidating standing there? Probably, but if you asked him to leave and he didn't, it would probably be tresspassing, for which he could be arrested if you called the cops. Similarly, it you told them not to send anyone to your property, and they did anyway, it would likely be tresspassing. They are actually in a potential sticky situation, should anything go wrong, particularly if you fail to be properly intimidated. What if, for example, it turns out that your brother had actually made the payment? What would that make demanding immediate payment of an amount you do not owe, using intimidation? What if, in handling this payment, they somehow failed to post it against your brother's loan? What does this "collection" become? Or what if, in trying to be "intimidating" to collect, yet not so intimidating as to get arrested, the dude had bumped into your car, or run over your cat? What would normally be considered an "accident", now takes on the character of an "assault" or intentional damage to property. They have adequately covered their interests in the past when a payment was late with a simple phone call. They can still contact you by mail, and there is no reason for them to assume that would not be sufficient. Why should you accept this? I would talk to your local district attorney, and if you feel threatened, see if obtaining a restraining order is appropriate.
"It was $800 to be paid back over a 48month period.. total owed was $2000." Is that $800 principal, with $2000 total payback of principal and interest over 48 months? About 23% APR.
Bastard is lucky he didn't show up at my door.....he would have had a face to face with my law firm of Smith & Wesson. Lawyer up. http://www.naca.net/
I would have never of paid someone that came to my door. I would have said I would head down to the office myself that day and take care of it. Who knows who that person is.. and if you gave them cash then who;s to say it's going to be applied to your account....
