I leased a vehicle through Hyundai Motor Finance in June 2016 with a cosigner. The contract was for a 4 year lease, at approximately $500 per month.
I filed for bankruptcy in September 2017, but my cosigner did not. After my bankruptcy went through, I was told I could keep the vehicle as long as I agreed to make the monthly payments. I agreed to do this, because I did not want to hurt my cosigner's credit.
I continued to make monthly payments on the vehicle until last month (October 2019). I went to the same dealership where I leased the first vehicle. I specifically asked the salesman (multiple times) if I turned in the leased vehicle to them, would myself or my cosigner be responsible for any termination fees. I was assured by the salesman (who verified with his manager) that neither one of us would be responsible for any fees regarding the leased vehicle. Taking him at his word, I agreed to turn in my vehicle and finance a preowned vehicle from them.
Now over the weekend I got a letter in the mail from Hyundai Motor Finance stating I was past due for the leased vehicle. Customer Service stated my cosigner is still on the hook for the remainder of the lease.
What should I do?
Unfortunately, there is nothing you can do to prevent your co-signor from being liable except to pay the amount due. You can, however, challenge any fees they say are due if you were assured you could surrender the vehicle without a termination fee.
I am a Massachusetts attorney and answer questions based on Massachusetts law. The above answer is for educational purposes only and does not create an attorney client relationship or constitute legal advice.
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