Defaulting On Payment | Ramblings of an e-trader

Wednesday, 2 December 2009

Defaulting On Payment

My friend, Alex, was very angry yesterday when he discovered that his brother-in-law did not pay the car loan installment for a few months. Alex said that he wanted to help his brother-in-law who need a car for work but didn't have enough cash to buy one and was blacklisted to take out a loan in his own name. Alex came to the rescue on condition that the brother-in-law takes care of the installment on schedule.

Yesterday, Alex was contacted by a Collection Agency to pay up or face repossession of the car. Can you imagine how embarrassed Alex was to receive such a phone call in the office even though it was not his fault? The car wasn't even with him and he doesn't feel that he should be made to pay but he would have to if his brother-in-law doesn't, or couldn't.

I could certainly sympathize with Alex. Even though the car isn’t his, it’s his legally because it’s in his name and any defaulting on payment by his brother-in-law like what is happening now would be his responsibility. And he would have to bear the financial burden. That’s why one should only “loan” his name to someone that is 100% trustworthy. I think Alex has learned his lesson now.

*** This post has been sponsored.

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