Comments Off on Update Co-Signer Agreements and Win in Court

Even if Laws don’t change, how the Courts interpret laws is in a constant state of flux. Defense Attorneys are always looking for something new and, once they find it, every company that wants to win in court has to make changes or prepare to start losing cases.

You work hard to check out a Co-Signer. You run Credit checks, criminal background checks, employment verifications and eviction reports or, for businesses Dunn & Bradstreet reports. None of this matters if your Co-Signer is removed by the Courts.

Co-Signers or Guarantors are getting off the hook. It isn’t because of what they sign but what they don’t sign. If you use a contract that can be renewed, you could lose your Co-Signer after the renewal date.

Courts want to see that a contract is renewed in writing. If the Co-Signer or Guarantor does not sign the renewal, the Courts are starting to rule in favor of the defense.

There are two solutions to this problem. The hard way is to make sure the Co-Signer signs every renewal in your presence. The second way is much easier and keeps the Co-Signer on the hook.

Use a separate Co-Signer agreement. Specify the name, address and social security number of the Co-Signer. Specify the specific details of what the Co-Signer is guaranteeing. Most important, specify that the guarantee will remain in effect for the entire duration of the tenancy or business relationship, regardless of anything that might happen with lease breaks or renewal.

You need a Co-Signer when the initial applicant does not meet your requirements. You only required a Co-Signer because you were worried about getting paid by the original applicant. Don’t lose this necessary financial tool. Get a separate document signed.

It’s quick. It’s easy. It works. You do want to win, don’t you?


Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment ScreeningBusiness Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.