Generally, no, you cannot report your car stolen if the cosigner has it. This situation is almost always considered a civil dispute rather than a criminal act of theft by law enforcement.
Understanding the Cosigner's Role
A cosigner is an individual who legally agrees to share responsibility for a debt, such as a car loan, with the primary borrower. This means they are equally liable for making payments if the primary borrower defaults. However, their role regarding ownership of the vehicle is crucial:
- Cosigner on Loan Only: If the cosigner is only on the loan agreement and not listed on the vehicle's title, the primary borrower typically remains the sole legal owner.
- Co-owner on Title: If the cosigner's name is also on the vehicle's title, they are a co-owner and have shared legal rights to the vehicle's possession and use.
The key distinction lies in whether the cosigner has a legitimate claim or shared legal interest in the vehicle itself, not just the financial obligation.
Why It's Not Usually Considered Theft
While it is true that if someone takes or controls your property without your permission, it could potentially be considered theft, this general definition becomes complex when a cosigner is involved.
When you contact the police department regarding a cosigner taking possession of the vehicle, they would investigate the situation to determine if a crime has occurred. However, police departments generally consider disputes over property between individuals with shared legal interests, such as co-owners or cosigners with a financial stake, to be civil matters rather than criminal theft. This is because the cosigner has a legal relationship and often a legitimate claim or shared right to the vehicle, even if you, as the primary borrower, feel it was taken without your immediate permission.
Police intervention in such cases is typically limited to documenting the situation, as they are not equipped or authorized to resolve civil disputes. They focus on clear-cut criminal acts where there is no legitimate claim to the property by the person who took it.
Civil vs. Criminal Dispute
| Feature | Criminal Theft Claim (Rarely Applicable) | Civil Dispute (Common) |
|---|---|---|
| Police Role | Investigate, gather evidence, potentially file charges | Document incident, advise on civil remedies, generally do not intervene |
| Ownership | Clear taking by someone with no legal right to property | Disputed or shared legal rights/claims to the property |
| Legal Action | Prosecution by the state | Lawsuit initiated by one party against another |
What to Do If a Cosigner Has Your Car
Since reporting the car stolen is unlikely to be effective or appropriate, here are more suitable steps to take:
1. Check the Vehicle Title and Loan Agreement
- Review the Title: Determine if the cosigner is listed as a co-owner on the vehicle's title. If both names are on it, pay attention to whether they are joined by "and" (requiring both signatures for sale/major decisions) or "or" (allowing either party to act independently).
- Examine the Loan Agreement: Look for clauses regarding possession, default, or remedies if one party takes the vehicle.
2. Communicate and Negotiate
- Direct Communication: Try to resolve the issue amicably by discussing the situation directly with the cosigner. Understand their reasons for taking the car.
- Mediation: If direct communication fails, consider a neutral third-party mediator to help facilitate an agreement.
3. Seek Legal Counsel
- Consult an Attorney: A lawyer specializing in civil law or property disputes can advise you on your rights and the best course of action. They can help determine if you have a case for:
- Replevin: A legal action to recover personal property wrongfully taken or detained.
- Breach of Contract: If the cosigner's actions violate any terms of your agreement (e.g., if there was a separate agreement about who has primary use).
- Partition: If you are co-owners, a court may order the sale of the vehicle and division of proceeds.
- Consider a Buyout or Sale: Explore options where one party buys out the other's interest, or the car is sold, and the proceeds are used to pay off the loan.
Potential Consequences of a False Report
It is crucial to avoid filing a false police report. Falsely reporting a crime, such as theft, when no crime has occurred (and it's actually a civil dispute), can lead to serious legal consequences, including fines, penalties, and even criminal charges against you.
