I am a coborrower on my brother's loan. We do not live together so I did not receive a delinquency notice. I just learned about this. Is there a law that says the bank should have notified me too? Also, I was told by my brother that I will be reported to the credit bureau if I don't pay. Sure enough they said I was delinquent on my credit report. No one informed me. A friend said I should have been notified before they did this. Is this right? Do I have recourse? Help!
There is no obligation under federal laws that a notice of delinquency be sent to any party. It is common practice to do so because it is a cost effective collection technique, but most systems will generate a notice to be sent to the address of the borrower. Duplicate notices are not generally sent to a secondary address.
It is your responsibility to know if the payment is being made. This is one reason many lenders carefully caution any cosigner/coborrower who may be detached from the borrower as you are. I did this routinely, but it was purely a courtesy.
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There is no obligation under federal laws that a notice of delinquency be sent to any party. It is common practice to do so because it is a cost effective collection technique, but most systems will generate a notice to be sent to the address of the borrower. Duplicate notices are not generally sent to a secondary address.