Expert: Ray A Miller - 10/29/2008

Question
I co-signed on a car with my son 5 years ago. He ended up letting Ford Motor Credit repo the car. I have been making monthly payments for over 4 years to an Attorney here in Charlotte,NC. Recently I pulled my credit report, and ford Motor lists a charge-off for the amount owed on the car, and then a Judgment for the amount owed after it was sold at auction. Is this legal? If they did a charge off, I'm told that an insurance company then paid for the loss. Then they sold it at auction and received money for the car. And now, I've been paying $100 a month for four years to pay for the car - yet again. I thank you in advance for your advice. donna

Answer
Check with the people to whom you are making the payments and ask for an accounting of the sale of the car and any deficiency balance that may have been left.  More than likely what you are paying is the money back to the insurance company that they had to pay.  Unless you made a huge down payment, there would be an amount left over from the sale of the car that you would have to pay.  I am not familiar with the type of insurance you mention but, if I were you, I would call the Insurance Commissioner in your state and check on it.

I am sure you have heard by now that it is never a good idea to co-sign a note for anyone so, I am including this advice for others who may read this.

Good luck with this and let me know if I may be of further assistance.