Q: Can you finance company switch over the contract of a used vehicle into the cosigner’s name

A: In California, the terms of a vehicle finance agreement, including the rights and obligations of the borrower and cosigner, are typically governed by the contract signed at the time of purchase. A finance company generally cannot unilaterally change the contract or switch the primary responsibility from the borrower to the cosigner without the consent of all parties involved. This includes transferring the contract into the cosigner’s name without your knowledge or agreement.

If a vehicle is repossessed due to non-payment, the finance company usually has the right to sell the vehicle to recover the outstanding debt. However, both the primary borrower and the cosigner should be notified of the repossession and the intent to sell, as well as any deficiency balance owing after the sale. The cosigner is equally responsible for the loan and can be pursued for the remaining debt, but this does not mean the original contract's terms can be changed without consent.

If you find that the finance company has acted without your knowledge or consent, or if you have concerns about how the finance company has handled the transfer of the contract to the cosigner, it may be beneficial to seek legal advice. A legal professional can review the original contract and any subsequent actions taken by the finance company to determine if your rights have been violated. Additionally, they can offer guidance on potential remedies or actions you can take to address the situation.