Co-borrower and Co-signer

Can a co-borrower be considered a co-signer under the definition and provisions of Regulation AA? For example, parent and child purchases an auto via a credit sale contract. Both parent and child sign the credit sale contract as borrowers. Child is off to college and takes the auto. Is the parent co-borrower a co-signer under Regulation AA?

If they applied together as joint applicants then they are co-borrowers. For the purposes of the Reg. AA definition, the mother's, or the son's for that matter, signature would have to have been requested as a condition of the credit. Your post does not indicate that happened.

Both parent and child signs the application and the credit sale contract (promissory note). Contractually, the parent is obligated just as the child to fulfill the terms of the contract but techinically under Regulation AA is the parent a cosigner?

You have to assume liability and not receive benefit (the name on the car title) to be a cosigner. If they both sign the loan, neither is a cosigner. If one signs the note, the other is a cosigner (even if they are joint applicants, co-borrowers, etc.).

Parent assumed liability when the sale contract (promissory note) was signed by parent and parent do not receive benefit (auto is taken to college by child and parent do not have access to the auto). Title may or may not be in the names of both parent and child. Parent is a co-signer under Regulation AA?

If the parent's name is on the title, they received benefit. Therefore, they aren't a cosigner. I don't believe it matters if they access to the auto.

David,

Thank you for your responses and patience!