Money, in brief

A guarantor's obligation starts only when the borrower defaults. A co-signer's starts at the same moment as the borrower's. [3]

So a co-signer is not a backup. They are on the hook for 100% of the bill, with no access to the account. [2]

In some states a lender can try to collect from the co-signer before going after the borrower, according to the Federal Trade Commission. [1]

The co-signer shares the legal responsibility but never touches the money. On a car loan they get no ownership either. [5][6]

The loan lands on the co-signer's credit report. A payment the borrower misses pulls the co-signer's score down. [1]

It also counts in the co-signer's debt-to-income ratio, so their own later application can be turned down. [1]

Lenders generally weigh legal action once a debt is at least 90 days past due. A judgment can lead to wage garnishment. [1][4]

Leaving is usually not the co-signer's decision. Some lenders only let the original borrower apply for a release. [4][44]

Where a release exists it normally needs a run of on-time payments and a fresh credit check on the borrower. [4]

Some lenders never allow a co-signer to be taken off at all, so the promise can outlast the reason for it. [44]

Most major card issuers have phased out co-signers on credit cards, leaving loans as where the practice lives. [8]

There is a business version. An unlimited personal guarantee makes an owner personally liable for the whole business loan. [9][43]

A rental guarantor is different again: not on the tenancy, but liable if the renter stops paying or leaves early. [10]

The co-signer is legally responsible for repaying the loan, and can face legal consequences if they in turn fail to pay. [42]

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. [11]

The CFPB says a nursing home should not make a caregiver personally responsible for a resident's bill as a condition of admission. [12]

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. [12]

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. [14]

Why it matters. One complaint describes an older man billed by a collection agency for his dead son's cable account. [13]

On a joint return both people are responsible for the tax, interest and penalty, however the income was earned, the IRS says. [15]

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. [16]

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. [45]

Why it matters. On a joint application it counts against both, which is the moment two files become one decision. [45]

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. [17]

Why it matters. A guarantee adds a payer. It does not shrink the debt, and it does not move who owes it.

A landlord who rejects an applicant because of a tenant screening report must send an adverse action notice, under the Fair Credit Reporting Act. [39]

Why it matters. The screening company then has 30 days to investigate a dispute, and some states set shorter deadlines. [39]

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. [18]

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 student lenders commonly want a co-signer with strong credit, and some offer a release only after set conditions are met. [40][41]

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. [44]

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. [19]

Why it matters. A proposed settlement had already signalled the end, restarting payments for borrowers who had been in limbo for months. [36]

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. [20]

Why it matters. The One Big Beautiful Bill Act swept in existing borrowers, not only new ones. [38]

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. [11]

Why it matters. Grad PLUS loans are no longer available, and parents are capped at $20,000 a year and $65,000 per student. [37][11]

The FCA says 12 million people are entitled to car finance compensation averaging £829 each, down from an earlier estimate of 14 million. [21]

Why it matters. Shares in Close Brothers rose 2.8% and Lloyds 1.1% when the eligible number came in lower than expected. [21]

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%. [22]

Why it matters. MPs told the regulator its consultation kept warning about lender profit margins, and accused it of siding with lenders. [23]

Four parties are challenging the scheme: the finance arms of Volkswagen, Mercedes-Benz and Credit Agricole, plus the campaign group Consumer Voice. [24]

Why it matters. The FCA told MPs the challenges could add £6bn of costs to lenders and leave drivers waiting three more years. [24]

New FCA rules for buy now, pay later credit took effect in July 2026, ending what the government called the sector's wild west. [25]

Why it matters. The market grew from £60m in 2017 to more than £13bn in 2024, on the FCA's own figures. [25]

The apps Flex and Zip lend for broadband, electricity, health insurance and water bills. Affirm extends rent for some tenants. [26]

Why it matters. Americans spent $160bn through pay-later loans last year, and the feature now comes built into many credit cards. [26][47]

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. [27] A single fee can run to $30 or more, though some banks now charge none. [46]

Why it matters. Bank and credit union customers paid an estimated $15bn in overdraft and insufficient-funds fees in 2019. [28]

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. [29]

Why it matters. Nearly one in five UK savers aged 65 and over say they have already started giving money away in response. [29]

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. [48]

Why it matters. A married couple can effectively double it to $38,000 per recipient, for as many recipients as they like. [48]

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. [30]

Why it matters. The Treasury says the reliefs being trimmed mostly benefit a small number of wealthy estates. [30]

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. [31]

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. [35]