Co-Signing for Loans and Purchases

Information from the Erie County Bar Association on the dangers of co-signing on a loan or purchase. Co-signing on a contract to obtain a loan or to purchase goods on installment payment is a simple act. However, that act of signing your name on the loan agreement or contract next to or under the signature of the person entering into the contract could have serious legal repercussions for you in the future. The act of co-signing on a contract for a loan or purchase is an agreement by you to pay off the loan or purchase price if the other person fails to do so. (August 2018)