Protecting the Rights of Consumers
For Over 25 Years
Edelman Combs Latturner & Goodwin LLC
Question: What can be done if my son defaulted on a student loan which I co signed for and is now in the collection process?
Answer: The answer depends on who is trying to collect the loan. In some cases, you are dealing with a debt buyer who cannot even prove that they are the holder of the loan. Others should be settled or rehabilitated. Also, note that under Illinois law, a cosigner is entitled to written notice of the principal debtor’s default before any collection activity (including credit reporting) is undertaken, so that the cosigner can protect his or her credit; noncompliance may bar any claim. 815 ILCS 505/2S. Our firm may be able to assist you.
Also, your question assumes someone actually cosigned for the loan. We have seen cases where there is nothing actually signed by the "cosigner." A promise to pay the debt of another generally requires a signed writing.