Regs Governing Comaker/Cosigner Notification

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Question:

What are the Regs concerning the notification of comakers/cosigners for delinquent loans? I looked in the TIL and FCRA and I am having trouble finding guidance anywhere. Your help would be appreciated.

Answer:

Unless you have a state law governing collection activity for co-signers you can contact the co-signer at any time. Read your co-signer disclosure required by Reg. AA: The bank can collect this debt from you without first trying to collect from the borrower.

First published on BankersOnline.com 7/09/07