Borrower 2
February 23, 2010 | 30,00 EUR | answered by Andreas Scholz
Unfortunately, 5 years ago I co-signed as a borrower 2 on a car loan. Now borrower 1 is no longer paying and Santander is now asking me for the remaining amount. When the contract was signed, only the ID was required and not a pay slip. Is this legal? What can I do now, as I have found out that borrower 1 did not even have a job contract and I have informed the Santander Bank about this. Do I now have to cover the remaining amount?
Kind regards,
Kerstin Riedel
Dear questioner,
I assume here that you are jointly liable for the purchase price of the vehicle. In this case, the creditor can choose who to demand payment from. If the co-borrower has defaulted because they are not able to pay, the creditor - in your case Santander cB - can hold you responsible.
It is acceptable that the bank does not require proof of earnings from the borrower. The bank is not obligated to investigate the solvency of the contracting party. Rather, the contracting party must ensure that they will be able to meet their payment obligations.
Without knowing the exact reason for your joint liability in the contractual relationship (a guarantee could also be an option, but this would not change your liability in the end), you will have to cover the remaining amount. However, you can recover the payments you have made from the co-borrower, regardless of whether there is joint liability or a guarantee (you can find out which of the two applies in the loan agreement, which should have also been given to you).
I hope this information has been helpful to you. If you have any questions, please feel free to ask.
Best regards,
Andreas Scholz, Attorney
