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Is this a fair situation?*

A friend of mine took a loan on my behalf about 11/2 years ago and we signed a promisory note that I'll repay the loan monthly until paid in full. Our friendship ended but I still keep my promise and have been paying on the loan. I just found out that she refinanced the loan without telling me and I have been paying the same amount and more for the past year. I haven't missed any payments and pay twice as much as I should be paying and have records. What is my legal right in this matter? I have requested a valid bank statement be sent to me since I don't have access to the account but whenever I asked for a statement she sent a table of amortization and the payments made so far. What is/are my rights in this matter? Please help.

Answers:

1) You are responsible to pay whatever you agreed in the promisory note that you signed with your friend. You're legally bound by that agreement. You may want to contact your friend, tell her what you know, and see if you can get her to amend the agreement.

2) I would take her a** to a small claims court and have a judge make her pay you back the difference.

3) If you signed the note, you are responsible for whatever happens with the loan. It if was a joint loan, you're friend can make any changes she wants to. We had the same thing happen at the bank I work at. There's nothing that you can really do besides talk to your friend. You could try suing her but honestly, you'll be wasting your time and a lot more money than it's worth. Next time be careful who you put on your account because if it's a joint account, the other person can do whatever they please with it.

4) You signed a note. You got a loan from your friend. You are responsible for making payments according to the agreement. How she financed the cash she loaned you is not relevant. If she didn't take out a loan in the first place, but instead loaned you money out of her bank account, you would still be required to pay her back with the interest agreed. The fact that she didn't have the cash to loan you and took out a loan has nothing to do with you.

5) Legally she is responsible for the loan she took out if it is only in her name and it makes no difference what she has done as far as refinancing. Now sounds like you just signed a document with her (was it notarized and do you have the amount listed that you were to pay back, also have you kept copies or receipts where you have been paying her) is that correct? You should have something with the loan amount total and then if you have documents showing proof of payment it does not matter what she did in regards to refinancing etc. You owe $500 and you have paid $250 you still owe her $250 so pay it. If you owed that and have paid that you are done. But you must have copies of your payments (always write a check and note what it is for or do a money order so you have legal proof otherwise she could take you to small claims asking that you pay the loan and if you have no proof you'll be screwed. Good luck - just pay what you promised to pay what she does with the money after that is her business (if she doesn't pay the loan it's her credit).

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