Having a co-signer taken off a loan
LIST Code: MO-08-09-00-00
LIST Code
MO-08-09-00-00
Title
Having a co-signer taken off a loan
Definition
This legal issue covers problems related to removing a co-signer from a loan or credit account, including situations where one borrower wants to be released from responsibility but remains legally liable for the debt. It commonly arises after a relationship ends, financial circumstances change, or the primary borrower falls behind on payments. This category includes disputes where the primary borrower refuses or fails to refinance the loan, despite agreements or expectations that the co-signer would later be removed. It also covers misunderstandings about whether a co-signer can be removed without refinancing, lender requirements for releasing a co-signer, and the impact of late or missed payments on the co-signer’s credit and financial risk. In addition, this issue involves understanding the limited legal options available to a co-signer, such as requesting a co-signer release program (if available), negotiating refinancing, enforcing written agreements, or taking steps to protect credit when removal is not possible. Legal considerations may include contract terms, lender policies, credit reporting consequences, and whether court orders or settlement agreements affect responsibility for the debt. It includes: Requests to remove a co-signer from a loan or lease Refusal by the primary borrower to refinance Credit damage caused by missed or late payments Co-signer release requirements or programs Disputes after breakups, divorce, or separation