Cosigners-Past Due Notices

Posted By: Kristi

Cosigners-Past Due Notices - 05/01/19 04:40 PM

Is it a requirement for the bank to provide cosigners with past due notices and notification if the loan (unsecured) is being charged off? I know it is best practice so hopefully the cosigner will pay but is there a requirement? If there is if someone could lead me on where to find it I would greatly appreciate it.
Posted By: rlcarey

Re: Cosigners-Past Due Notices - 05/01/19 05:54 PM

You would have to start with State law.
Posted By: Rocky P

Re: Cosigners-Past Due Notices - 05/01/19 06:32 PM

Anon, Randy's word is the first step. Then, imagine the complaint to a regulator if a loan was delinquent and/or charged-off and the co-signor was unaware, but their credit affected? Instead of charging-off, why wouldn't the bank try to collect/take action against the co-signor(s)?