Liability of Cosigners When Car Repossessed

Question: How can I avoid paying for a car after it is repossessed. I am the cosigner and did not obtain possession of the car.

Answer: Under Illinois law, the creditor is required to provide you with written notice that the principal debtor is in default and an opportunity to take over the payments (815 ILCS 505/2S) before taking any collection action, including repossession, credit reporting, or legal action. Many creditors fail to comply. The failure should be a bar to liability.