The Woman Who Knew Too Little

Discussion in 'Credit Talk' started by Toothman, May 5, 2001.

  1. Toothman

    Toothman Well-Known Member


    I have a 23 year old female friend who is very trusting and sweet, yet hopelessly naive and she has asked me for advice.

    Unfortunately, I need to seek your advice on this subject as well. Here is the story:

    Exactly two years ago, she is living with a young man who is a student in college. While she was very responsible with her credit and finances, he was not. One day, he approaches her and asks her to co-sign for this loan so that he can do some things to prepare them for marriage. Her, being in love and "hopelessly naive", signs it.

    She never gets a copy and has no idea what she really signed as she DIDN'T FREAKIN read it. This is incredulous to me, however it is true.

    One month ago, she attempts to purchase a car and is told that she has good credit except for this student loan that is 120 past due.

    It turns out that this loan was actually a student loan for over 12,000. It is made up of:

    $6,430 for educational expenses
    $5,000 for a computer
    and a 7.90% fee for the loan.

    He set it up to only pay interest ($100 per month) until 6 months after he graduates and then the principal will be paid.

    He has been extremely cavalier about the payments and now her credit is being hurt. The contract states that she and this scumbag are both jointly and severally liable.

    I look at her credit reports today and they are great except for this. She didn't even have a copy of the loan paperwork until she sent a validation letter to the loan company that I plagiarized from our local visiting amphibian.

    Here is where YOU come in....

    I will work with her on her credit report and I have advised her to start paying the loan herself to salvage her credit.

    What I want to know is how she can legally recoup anything from him. Yes, she was naive and silly, however, it doesn't justify the following:

    He never used the loan for its intended purpose. He bought a truck, paid off old debts and bought cool stuff for himself. He isn't paying and now she is stuck. I read the loan app and it is fraudulent. He lied on both his and her portion.

    Is it possible to take him to small claims court to get some relief? If so, on what grounds. Your legal advice is much appreciated.
  2. breeze

    breeze Well-Known Member

    Oh good grief!! What an expensive lesson!!

    You can sue anybody for anything in small claims court. But the amount you can sue for is limited - does this jerk have anything of value she could take if she won a judgment?

    Is it fraud if he took the loan money she co-signed for, and then didn't use it for educational purposes? Then he would have defrauded her, and she could press charges aginst him. It' s not money, but.... sometimes the courts order the perpetrator to repay money they have cheated someone out of.

    No judge is going to be sympathetic if she admits that she didn't read it. I would keep that part quiet.

    My best thoughts at the moment - it's not much.

  3. roni

    roni Well-Known Member

    Breeze beat me to it. That is exactly right. Please keep the she didnot read it part quiet. That will not help her cause. She needs to show that he frauded her. He in essence borrowed money from her and did not use it for the purposes promised.
  4. Toothman

    Toothman Well-Known Member guys are giving me ideas here.

    I will definitely keep her lack of due diligence silent, however, he typed the paperwork and her personal info is fraudelent as well.

    Are you saying that she co-signed a loan and expected him to apply it properly and didn't and now he has defrauded her? If so....I like how you two think :):)
  5. roni

    roni Well-Known Member

    that's right toothman. That is grounds for a case. It is the same as if she gave him a check and he blew the money b/c the contract states what he should have done with the money. I think that is her only hope to recover a little from this.
  6. VJ

    VJ Well-Known Member

    You said she didn't even know about it untill she applied for a loan. Are you saying that the original credit grantor didn't informed her the payments were not being made timely and she needed to make the payments?

  7. Toothman

    Toothman Well-Known Member

    That is true. The original credit grantor only informed her of the unpaid account when she called to inquire why they had made an entry on her credit rating.

    Like I said....very naive. However, he had it arranged so that only he would get a statement and only he would know if it was behind.
  8. roni

    roni Well-Known Member

    THAT'S a good point point also VJ. BUT for student loans lenders always use the excuse that you are suppose to know a loan is in repayment and that she should have notified the lender of address changes. It is hard to use not getting notices to dispute sl payments. Was this a student loan ?
  9. Toothman

    Toothman Well-Known Member

    Yes, Roni, it is a student loan. He had it checked that all info goes to applicant number 1...him. Also, he listed her address as his so she would have never gotten anything. In fact, this thing would probably be in default if she hadn't tried to get a car.
  10. breeze

    breeze Well-Known Member

    HOld on , a sec. You said her personal infor was typed in by him, and it was not correct?? What was not correct? Maybe she could claim mistaken identity. or has she already admitted everything to them?

    One good fraud deserves another. ;)

  11. Toothman

    Toothman Well-Known Member

    Yes, Breeze. Her income and employers are listed incorrectly. He listed her as employed by his parents so they can participate in the fraud. The strange thing is they never checked her credit.

    I thought of the counter-fraud idea, that really viable since she signed up to it?
  12. DaveLV

    DaveLV Well-Known Member

    The strangest things go through my head sometimes. I couldn't help thinking as I read your message, "I hope Toothman's friend is on Norplant!"

    Please, everyone, make the voices stop! :)
  13. Toothman

    Toothman Well-Known Member

    Good one, Dave!!

    To be honest, she is college educated and a teacher. She was in love and did something foolish for a man she thought she was going to marry. I can't particularly relate, but I've never been a love-struck girl either.
  14. breeze

    breeze Well-Known Member

    Guys, we're like that when we're young. Our hormones control our brains, just like y'all ;)

    We get over it, hehe.

  15. roni

    roni Well-Known Member

    i am really sick of lizardking.
  16. Toothman

    Toothman Well-Known Member

    I'm sorry, Roni. May I ask what brought that on?
  17. VJ

    VJ Well-Known Member

    I don't like the whole thing. Here are some ideas to think about.

    Can she dispute with CRAs as never being billed?

    The argument that they didn't have here address doesn't pass the stink test since they accessed her credit report they could have verified address at same time.

    Since intentional fraud may be involved can she call ex to ask for repayments to be made before she files a police report to ask that criminal charges be filed.

    Does she have any insurance that may help against

    Since they are jointly responsible and funds were used to buy car, can she pursue having a joint interest in the car? (Like on Fri and Sat Nights)

    Since he went out of his way to bring her parents into it, I recommend she sit down and have a LONG talk with his parents, siblings, current mate(s), and friends and ask if they can help in any way.

    I'm curious, just what does this girl teach.

  18. roni

    roni Well-Known Member

    another thread. personal attacks at every chance. use to be a nice board. full of trash now. new board. pretty. same petty people.
  19. breeze

    breeze Well-Known Member

    About the mistaken identity...

    If she has not admitted to the loan company that she did it, the "I don't recall..." approach could certainly work.

    "Sure, I dated him but..."

    "I never lived there..."
    "I never worked there...."
    etc, etc,
    "That can't possibly be me....."
    "That's my name, but somebody made this stuff up..."
    "this thing is ruining my credit! I can't get a car!"
    "Isn't this illegal?"
    "You can't leave this on my credit report!"

    It could come off her credit report, and they would go after him for fraud - which he certainly deserves.

    I wouldn't pursue it very far, because you don't want to have her actually commit fraud, but they might believe her, and take it off her report. She's probably much more believable than he is.

    As an agent, I can tell you that the most common form of fraud is committed by people the victim knows, and probably who live at the same address. The loan company know that. If the loan co. didn't check her out, they didn't perform their due diligence.

    Anyway, just another idea. I am not saying go commit fraud, just plant the doubt in their minds, if they bite, great. If not drop it and pursue it another way.

  20. Toothman

    Toothman Well-Known Member

    Obviously, not financial management, VJ :)

    You have several good ideas. She has contacted this guy and his parents and no one is going to help. He occasionally makes a payment to stave off the wolves, but he knows if he doesn't, she gets dinged. This guy is the lowest kind of trash...the kind that abuses the generosity of others.

    She needs to pay this to learn her lesson. He needs to be punished for defrauding her. I want to help her (and no I'm not romantically interested) because I have a daughter and wouldn't want this to happen to her and I know how relentless these student loan things are.

    So...thank you everyone....anyone else have any ideas how I can go after this slime?

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