Before signing up to be a cosigner, fully read the terms and conditions to make sure you're happy with how the loan works. Once we receive a signed application from a cosigner, we'll check that they haven't had any trouble paying bills in the past. As part of the cosigner application, we make sure they understand their responsibilities as cosigner and that they can afford to make payments to the loan if the borrower doesn't.
We pay the loan out into the cosigner's bank account, not the borrower's. We do this to protect against fraud and ensure the cosigner is aware the loan has been paid out. The cosigner can either transfer it to the borrower or give them the cash. After the loan has been paid out, we will keep the cosigner up-to-date with statements so they can see the repayments being made.
If the borrower misses their payment date, we will notify both the borrower and cosigner immediately. If the borrower is not able to bring the account up to date then we will attempt to collect the payment from the cosigner.