Friday, 28 August 2026
Friday, 28 August 2026
- In brief
- 1Co-signing: why the backup payer was never a backup
- 2Nursing homes press caregivers to sign
- 3Debt collectors chase the wrong survivor
- 4A joint tax return owes the whole bill
- 5A spouse's bad score is not catching
- 6Rent guarantee insurance pays the landlord
- 7A screening file can cost a tenant the flat
- 8A 36% ceiling for military families
- 9Private loans are where co-signing lives
- 10Seven million told to change plan
- 11Congress rewrote loans already being repaid
- 12Graduate borrowing capped, Grad PLUS gone
- 13Twelve million UK drivers due payouts
- 14The interest on the payout is the fight
- 15Car finance payouts could slip three years
- 16UK brings buy now pay later into rules
- 17Pay-later loans move to the essentials
- 18Overdraft fees charged without consent
- 19Pension pots enter UK inheritance tax
- 20US gift allowance holds at $19,000
- 21Family firms face a 20% succession bill
- 22No-fault evictions end in England
- TruthThe truth, across the day
- HopeMore good news from the day
28 Aug · Money · In brief
Money · Friday, 28 August 2026
Money, in brief
22 stories · 48 sources
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What is moving · 1 of 4
The lender's cheapest route
some states let a lender pursue the co-signer first, per the Federal Trade Commission
What is moving · 2 of 4
The co-signer's control
some lenders only let the original borrower apply for a release
What is moving · 3 of 4
Pressure to find a co-signer
most graduate borrowers are now capped at $20,500 a year in federal loans
What is moving · 4 of 4
Credit exposure
the debt sits on the co-signer's report and counts against their own borrowing
Co-signing: why the backup payer was never a backup
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A guarantor's obligation starts only when the borrower defaults.
A co-signer's starts at the same moment as the borrower's.
so a borrower's missed payment follows the co-signer that long
they could previously borrow the full cost of attendance
Who is involved
The co-signer
owes the whole debt, holds none of the decisions that grow it
Who is involved
The borrower
makes every payment decision, and is often the only one allowed to ask for a release
Why it matters
Watch the new federal borrowing caps: the less of a degree that federal loans cover, the more families are asked to sign for one another.
How it works
There was never a queue
How it works
A co-signer is not standing behind the borrower but alongside them, and a lender collects wherever collecting is cheapest.
How it works · step 1 of 5
A lender wants a second name it can collect from
How it works · step 2 of 5
The second person signs and owes the whole debt
How it works · step 3 of 5
But every decision that grows the debt stays with the first person
How it works · step 4 of 5
And the account information stays with the lender
How it works · step 5 of 5
So when the money stops, the lender goes wherever collecting is cheapest
The twist
A guarantee does not stand behind the borrower. It stands beside them, and the lender walks toward whoever is easier to reach.
The catch
The promise is often the only reason the loan exists. Refuse it and the person who needed the money frequently just does not get it.
The whole
Every seat here is behaving sensibly. The lender wants a second name, the borrower needs one, and the person signing wants to help someone they love.
The whole
What none of the three is looking at is the shape the arrangement makes: the one who can see least of it carries the most.
What's really going on
A co-signature is asked for as a favour that costs nothing unless things go wrong; in law it is simply a second person the lender may collect from first.
Who gains
Lenders who ask for a co-signer
They get a second person to collect from and, in some states, may approach that person before the borrower.
Who pays
Co-signers refused credit years later
The debt counts in their debt-to-income ratio even when every payment on it has been made on time.
Who pays
Parents who cannot get released
Some lenders only let the original borrower apply for a release, and some never allow removal at all.
Nobody knows yet
How many co-signed loans end with the co-signer paying.
No such figure appears anywhere in this pool. Lenders publish arrears, not which of two names they collected from.
Nobody knows yet
Whether a co-signer or a guarantor is pursued first in any given state.
Investopedia says a co-signer's liability starts alongside the borrower's while a guarantor's begins at default; NerdWallet says only that some states let lenders go to the co-signer first.
The short version
That's the story in short.
The whole story has 15 more parts.
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The whole story, in 15 parts ↓
Part 1 of 15 · Who else is involved
The lender
gains a second person to collect from, and chooses which one to approach
Part 1 of 15 · Who else is involved
The Federal Trade Commission
warns that some states let lenders pursue the co-signer before the borrower
Part 2 of 15 · How it unfolded
First miss
The missed payment lands on the co-signer's score. They may have no access to the account information at all.
After a judgment
The co-signer can owe all the costs, including the lender's legal fees, and wages can be garnished.
Part 2 of 15 · How it unfolded
After a judgment
The co-signer can owe all the costs, including the lender's legal fees, and wages can be garnished.
Seven years on
Most negative information can still be reported on the co-signer's credit file.
Part 3 of 15
So a co-signer is not a backup.
Part 3 of 15
They are on the hook for 100% of the bill, with no access to the account.
Part 4 of 15
In some states a lender can try to collect from the co-signer before going after the borrower, according to the Federal Trade Commission.
Part 5 of 15
The co-signer shares the legal responsibility but never touches the money.
Part 5 of 15
On a car loan they get no ownership either.
Part 6 of 15
The loan lands on the co-signer's credit report.
Part 6 of 15
A payment the borrower misses pulls the co-signer's score down.
Part 7 of 15
It also counts in the co-signer's debt-to-income ratio, so their own later application can be turned down.
Part 8 of 15
Lenders generally weigh legal action once a debt is at least 90 days past due.
Part 8 of 15
A judgment can lead to wage garnishment.
Part 9 of 15
Leaving is usually not the co-signer's decision.
Part 9 of 15
Some lenders only let the original borrower apply for a release.
Part 10 of 15
Where a release exists it normally needs a run of on-time payments and a fresh credit check on the borrower.
Part 11 of 15
Some lenders never allow a co-signer to be taken off at all, so the promise can outlast the reason for it.
Part 12 of 15
Most major card issuers have phased out co-signers on credit cards, leaving loans as where the practice lives.
Part 13 of 15
There is a business version.
Part 13 of 15
An unlimited personal guarantee makes an owner personally liable for the whole business loan.
Part 14 of 15
A rental guarantor is different again: not on the tenancy, but liable if the renter stops paying or leaves early.
Part 15 of 15
The co-signer is legally responsible for repaying the loan, and can face legal consequences if they in turn fail to pay.
14 sources
Co-signing: why the backup payer was never a backup
- 1Co-signing a Loan: Risks and Benefits
- 2Joint Credit Explained: Types, Benefits, and How It Works
- 3Understanding Financial Guarantees: Types, Examples, and Benefits
- 46 Ways to Get Removed as a Loan or Credit Card Co-Signer
- 5How Much Can I Borrow On A Personal Loan With Bad Credit?
- 6What Is an Auto Loan Co-signer vs. Co-borrower?
- 7How long does information stay on my credit report?
- 8What to do instead of co-signing on a credit card
- 9Personal Guarantees for Business Loans: What to Know Before Signing
- 10How Credit Affects Renting an Apartment
- 11Make these 7 money moves before taking out a private student loan
- 42Best Personal Loans With a Cosigner in August 2026
- 43Can You Get a Small-Business Loan With a Cosigner?
- 44How To Get a Student Loan: A Step-by-Step Guide
The full story
Co-signing: why the backup payer was never a backup
A guarantor's obligation starts only when the borrower defaults. A co-signer's starts at the same moment as the borrower's.
So a co-signer is not a backup. They are on the hook for 100% of the bill, with no access to the account.
In some states a lender can try to collect from the co-signer before going after the borrower, according to the Federal Trade Commission.
The co-signer shares the legal responsibility but never touches the money. On a car loan they get no ownership either.
The loan lands on the co-signer's credit report. A payment the borrower misses pulls the co-signer's score down.
It also counts in the co-signer's debt-to-income ratio, so their own later application can be turned down.
Lenders generally weigh legal action once a debt is at least 90 days past due. A judgment can lead to wage garnishment.
Leaving is usually not the co-signer's decision. Some lenders only let the original borrower apply for a release.
Where a release exists it normally needs a run of on-time payments and a fresh credit check on the borrower.
Some lenders never allow a co-signer to be taken off at all, so the promise can outlast the reason for it.
Most major card issuers have phased out co-signers on credit cards, leaving loans as where the practice lives.
There is a business version. An unlimited personal guarantee makes an owner personally liable for the whole business loan.
A rental guarantor is different again: not on the tenancy, but liable if the renter stops paying or leaves early.
The co-signer is legally responsible for repaying the loan, and can face legal consequences if they in turn fail to pay.
Why it matters. Watch the new federal borrowing caps: the less of a degree that federal loans cover, the more families are asked to sign for one another.
Nursing homes press caregivers to sign
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The CFPB says a nursing home should not make a caregiver personally responsible for a resident's bill as a condition of admission.
Why it matters
Some hire debt collectors anyway, report it as the caregiver's own debt, and sue. The same promise, asked for at the worst moment.
Who gains
Nursing homes that get a caregiver's signature
An admission contract turns a resident's unpaid bill into a debt they can report to credit agencies and sue over.
Nobody knows yet
How many caregivers have paid a nursing home bill they never owed.
The CFPB describes the practice and names its own circular, but publishes no count of how often the demand works.
The full story
Nursing homes press caregivers to sign
The CFPB says a nursing home should not make a caregiver personally responsible for a resident's bill as a condition of admission.
Why it matters. Some hire debt collectors anyway, report it as the caregiver's own debt, and sue. The same promise, asked for at the worst moment.
Debt collectors chase the wrong survivor
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A survivor is generally not responsible for someone else's debt, the CFPB says. It should be paid from the estate, and if there is no estate it usually goes unpaid.
Why it matters
One complaint describes an older man billed by a collection agency for his dead son's cable account.
2 sources
Debt collectors chase the wrong survivor
The full story
Debt collectors chase the wrong survivor
A survivor is generally not responsible for someone else's debt, the CFPB says. It should be paid from the estate, and if there is no estate it usually goes unpaid.
Why it matters. One complaint describes an older man billed by a collection agency for his dead son's cable account.
A joint tax return owes the whole bill
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On a joint return both people are responsible for the tax, interest and penalty, however the income was earned, the IRS says.
Why it matters
Relief exists but has to be asked for, and separation of liability only applies once a couple is divorced or living apart.
2 sources
A joint tax return owes the whole bill
The full story
A joint tax return owes the whole bill
On a joint return both people are responsible for the tax, interest and penalty, however the income was earned, the IRS says.
Why it matters. Relief exists but has to be asked for, and separation of liability only applies once a couple is divorced or living apart.
A spouse's bad score is not catching
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One spouse's poor credit score does not touch the other's, the CFPB says, because a score is built on one person's history.
Why it matters
On a joint application it counts against both, which is the moment two files become one decision.
1 source
A spouse's bad score is not catching
The full story
A spouse's bad score is not catching
One spouse's poor credit score does not touch the other's, the CFPB says, because a score is built on one person's history.
Why it matters. On a joint application it counts against both, which is the moment two files become one decision.
Rent guarantee insurance pays the landlord
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It reimburses a landlord when a tenant stops paying, usually for up to 12 months. The tenant still owes the rent and the legal fees.
Why it matters
A guarantee adds a payer. It does not shrink the debt, and it does not move who owes it.
Who gains
Landlords with rent guarantee insurance
The policy pays them for up to 12 months and the tenant still owes every pound of the missed rent.
1 source
Rent guarantee insurance pays the landlord
The full story
Rent guarantee insurance pays the landlord
It reimburses a landlord when a tenant stops paying, usually for up to 12 months. The tenant still owes the rent and the legal fees.
Why it matters. A guarantee adds a payer. It does not shrink the debt, and it does not move who owes it.
A screening file can cost a tenant the flat
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A landlord who rejects an applicant because of a tenant screening report must send an adverse action notice, under the Fair Credit Reporting Act.
Why it matters
The screening company then has 30 days to investigate a dispute, and some states set shorter deadlines.
1 source
A screening file can cost a tenant the flat
The full story
A screening file can cost a tenant the flat
A landlord who rejects an applicant because of a tenant screening report must send an adverse action notice, under the Fair Credit Reporting Act.
Why it matters. The screening company then has 30 days to investigate a dispute, and some states set shorter deadlines.
A 36% ceiling for military families
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The Military Lending Act caps covered credit at 36% a year for active-duty servicemembers and their spouses, and bars forcing repayment through a military allotment.
Why it matters
It is a rule about what a lender may ask someone to sign, which is the thing co-signing has almost none of.
The full story
A 36% ceiling for military families
The Military Lending Act caps covered credit at 36% a year for active-duty servicemembers and their spouses, and bars forcing repayment through a military allotment.
Why it matters. It is a rule about what a lender may ask someone to sign, which is the thing co-signing has almost none of.
Private loans are where co-signing lives
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Private student lenders commonly want a co-signer with strong credit, and some offer a release only after set conditions are met.
Why it matters
Not all private lenders allow a co-signer to be taken off, so a parent can stay liable long after the student is earning.
3 sources
Private loans are where co-signing lives
The full story
Private loans are where co-signing lives
Private student lenders commonly want a co-signer with strong credit, and some offer a release only after set conditions are met.
Why it matters. Not all private lenders allow a co-signer to be taken off, so a parent can stay liable long after the student is earning.
Seven million told to change plan
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The SAVE repayment plan ended on 1 July 2026 after a March 2026 court ruling, giving more than 7 million US borrowers 90 days to pick another.
Why it matters
A proposed settlement had already signalled the end, restarting payments for borrowers who had been in limbo for months.
Who pays
Borrowers moved off SAVE
More than 7 million had 90 days to choose a new plan after a court ruled the old one unconstitutional.
2 sources
Seven million told to change plan
The full story
Seven million told to change plan
The SAVE repayment plan ended on 1 July 2026 after a March 2026 court ruling, giving more than 7 million US borrowers 90 days to pick another.
Why it matters. A proposed settlement had already signalled the end, restarting payments for borrowers who had been in limbo for months.
Congress rewrote loans already being repaid
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A Utah pharmacist who borrowed $166,000 and enrolled in Pay As You Earn in 2013 now faces a plan with longer terms and bigger payments.
Why it matters
The One Big Beautiful Bill Act swept in existing borrowers, not only new ones.
Who pays
A pharmacist who enrolled in PAYE in 2013
He borrowed $166,000 and now faces longer terms and larger payments than the plan he chose.
Nobody knows yet
How many US borrowers will pay more than the terms they signed up for.
The changes swept in existing borrowers as well as new ones, and no total has been published.
2 sources
Congress rewrote loans already being repaid
The full story
Congress rewrote loans already being repaid
A Utah pharmacist who borrowed $166,000 and enrolled in Pay As You Earn in 2013 now faces a plan with longer terms and bigger payments.
Why it matters. The One Big Beautiful Bill Act swept in existing borrowers, not only new ones.
Graduate borrowing capped, Grad PLUS gone
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Medical, dental and law students can now borrow $50,000 a year and $200,000 in total. Other graduate borrowers are held to $20,500 and $100,000.
Why it matters
Grad PLUS loans are no longer available, and parents are capped at $20,000 a year and $65,000 per student.
2 sources
Graduate borrowing capped, Grad PLUS gone
The full story
Graduate borrowing capped, Grad PLUS gone
Medical, dental and law students can now borrow $50,000 a year and $200,000 in total. Other graduate borrowers are held to $20,500 and $100,000.
Why it matters. Grad PLUS loans are no longer available, and parents are capped at $20,000 a year and $65,000 per student.
Twelve million UK drivers due payouts
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The FCA says 12 million people are entitled to car finance compensation averaging £829 each, down from an earlier estimate of 14 million.
Why it matters
Shares in Close Brothers rose 2.8% and Lloyds 1.1% when the eligible number came in lower than expected.
Who gains
Close Brothers and Lloyds shareholders
Their shares rose 2.8% and 1.1% when the number of eligible car finance claimants came in lower than expected.
Nobody knows yet
How much a driver actually gets from the car finance scheme.
The FCA has been reported as averaging £829 per person and about £700 per agreement, and a person can hold more than one agreement.
Nobody knows yet
How many car finance agreements are eligible at all.
One FCA figure put reviewable agreements at up to 30 million between 2007 and 2020, while the redress scheme names 12 million people.
4 sources
Twelve million UK drivers due payouts
- 21'I sent eight letters': Drivers hope for payout from car finance redress scheme
- 32Car finance scandal: Average payouts of £700 per claim under compensation plans
- 33Car finance compensation: Millions of drivers to receive average £829 payout
- 34Car finance compensation should be paid next year, says regulator
The full story
Twelve million UK drivers due payouts
The FCA says 12 million people are entitled to car finance compensation averaging £829 each, down from an earlier estimate of 14 million.
Why it matters. Shares in Close Brothers rose 2.8% and Lloyds 1.1% when the eligible number came in lower than expected.
The interest on the payout is the fight
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The FCA proposed paying 2.09% interest on car finance redress. Claims firms say that costs victims about £4bn, and one claimant is believed to have received about 7%.
Why it matters
MPs told the regulator its consultation kept warning about lender profit margins, and accused it of siding with lenders.
Nobody knows yet
What the whole car finance bill comes to.
The BBC reported lenders could pay £8.2bn; the Guardian reported an £11bn estimate including administrative costs. The figure moved as the scheme was rewritten.
Nobody knows yet
Whether the FCA's 2.09% interest rate on car finance redress survives.
Four parties are challenging the scheme, and the regulator told MPs the challenges could delay payouts by three years.
4 sources
The interest on the payout is the fight
- 22Victims robbed of £4bn in 'insulting' car loan redress scheme, say claims firms
- 23City watchdog 'nakedly' siding with lenders on car finance redress, MPs say
- 24Car finance payouts could be delayed by years over legal challenges, says FCA
- 32Car finance scandal: Average payouts of £700 per claim under compensation plans
The full story
The interest on the payout is the fight
The FCA proposed paying 2.09% interest on car finance redress. Claims firms say that costs victims about £4bn, and one claimant is believed to have received about 7%.
Why it matters. MPs told the regulator its consultation kept warning about lender profit margins, and accused it of siding with lenders.
Car finance payouts could slip three years
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Four parties are challenging the scheme: the finance arms of Volkswagen, Mercedes-Benz and Credit Agricole, plus the campaign group Consumer Voice.
Why it matters
The FCA told MPs the challenges could add £6bn of costs to lenders and leave drivers waiting three more years.
1 source
Car finance payouts could slip three years
The full story
Car finance payouts could slip three years
Four parties are challenging the scheme: the finance arms of Volkswagen, Mercedes-Benz and Credit Agricole, plus the campaign group Consumer Voice.
Why it matters. The FCA told MPs the challenges could add £6bn of costs to lenders and leave drivers waiting three more years.
UK brings buy now pay later into rules
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New FCA rules for buy now, pay later credit took effect in July 2026, ending what the government called the sector's wild west.
Why it matters
The market grew from £60m in 2017 to more than £13bn in 2024, on the FCA's own figures.
1 source
UK brings buy now pay later into rules
The full story
UK brings buy now pay later into rules
New FCA rules for buy now, pay later credit took effect in July 2026, ending what the government called the sector's wild west.
Why it matters. The market grew from £60m in 2017 to more than £13bn in 2024, on the FCA's own figures.
Pay-later loans move to the essentials
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The apps Flex and Zip lend for broadband, electricity, health insurance and water bills. Affirm extends rent for some tenants.
Why it matters
Americans spent $160bn through pay-later loans last year, and the feature now comes built into many credit cards.
Who pays
Households borrowing for utility bills
Flex and Zip lend for electricity, broadband and water, so interest is now charged on the cost of staying warm.
2 sources
Pay-later loans move to the essentials
The full story
Pay-later loans move to the essentials
The apps Flex and Zip lend for broadband, electricity, health insurance and water bills. Affirm extends rent for some tenants.
Why it matters. Americans spent $160bn through pay-later loans last year, and the feature now comes built into many credit cards.
Overdraft fees charged without consent
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The CFPB said some banks could show no proof that customers had opted in, and ordered Regions Bank to pay $191m over surprise overdraft fees.
A single fee can run to $30 or more, though some banks now charge none.
Why it matters
Bank and credit union customers paid an estimated $15bn in overdraft and insufficient-funds fees in 2019.
The full story
Overdraft fees charged without consent
The CFPB said some banks could show no proof that customers had opted in, and ordered Regions Bank to pay $191m over surprise overdraft fees.
Why it matters. Bank and credit union customers paid an estimated $15bn in overdraft and insufficient-funds fees in 2019.
Pension pots enter UK inheritance tax
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From April 2027 unused private pensions count as part of an estate. Inheritance tax is 40% above £325,000, or £500,000 when a home passes to children.
Why it matters
Nearly one in five UK savers aged 65 and over say they have already started giving money away in response.
The full story
Pension pots enter UK inheritance tax
From April 2027 unused private pensions count as part of an estate. Inheritance tax is 40% above £325,000, or £500,000 when a home passes to children.
Why it matters. Nearly one in five UK savers aged 65 and over say they have already started giving money away in response.
US gift allowance holds at $19,000
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The amount one person can give another without triggering federal gift tax reporting stays at $19,000 per recipient for 2026, up $1,000 from 2024.
Why it matters
A married couple can effectively double it to $38,000 per recipient, for as many recipients as they like.
1 source
US gift allowance holds at $19,000
The full story
US gift allowance holds at $19,000
The amount one person can give another without triggering federal gift tax reporting stays at $19,000 per recipient for 2026, up $1,000 from 2024.
Why it matters. A married couple can effectively double it to $38,000 per recipient, for as many recipients as they like.
Family firms face a 20% succession bill
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From April, UK business and farm assets above £1m are effectively taxed at 20% when passed on.
A Wrexham sports goods founder says his bill could run to tens of millions.
Why it matters
The Treasury says the reliefs being trimmed mostly benefit a small number of wealthy estates.
1 source
Family firms face a 20% succession bill
The full story
Family firms face a 20% succession bill
From April, UK business and farm assets above £1m are effectively taxed at 20% when passed on. A Wrexham sports goods founder says his bill could run to tens of millions.
Why it matters. The Treasury says the reliefs being trimmed mostly benefit a small number of wealthy estates.
No-fault evictions end in England
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From 1 May a landlord in England must give a legal reason to evict, and fixed-term tenancies are replaced by rolling ones.
More than 11,000 households were repossessed after a Section 21 notice in the year to June 2025.
Why it matters
Reports of no-fault evictions to the renters' union Acorn rose from one in five in October to nearly one in three by January.
2 sources
No-fault evictions end in England
The full story
No-fault evictions end in England
From 1 May a landlord in England must give a legal reason to evict, and fixed-term tenancies are replaced by rolling ones. More than 11,000 households were repossessed after a Section 21 notice in the year to June 2025.
Why it matters. Reports of no-fault evictions to the renters' union Acorn rose from one in five in October to nearly one in three by January.
The truth, across the day
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Why it works on people
The request always arrives as a question about trust in a person, while the paperwork is a question about money.
Who gains
Private student lenders
Federal caps of $20,500 a year for most graduate borrowers push families toward private loans that usually want a co-signer.
2 sources
The truth, across the day
More good news from the day
Swipe up for the good news ↑Scroll down for the good news ↓
Good news
A co-signature exists because somebody chose to make another person's life possible. The contract is lopsided; the instinct behind signing it is not.
That's the whole Money day.
22 stories, 48 sources.