When you agree to be a cosigner for someone else's debt, you are guaranteeing to pay if that person fails to pay the debt. The Rule requires that you be given a notice that explains the responsibility you are undertaking. Under the Rule, the cosigner notice must say:
You are being asked to guarantee this debt. Think carefully before you do. If the borrower doesn't pay the debt, you will have to. Be sure you can afford to pay if you have to, and that you want to accept this responsibility. You may have to pay up to the full amount of the debt if the borrower does not pay. You may also have to pay late fees or collection costs, which increase this amount.
The creditor can collect this debt from you without first trying to collect from the borrower.* The creditor can use the same collection methods against you that can be used against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever in default, that fact may become a part of your credit record.
This notice is not the contract that makes you liable for the debt.
* Depending on your state, this may not apply. If state law forbids a creditor from collecting from a cosigner without first trying to collect from the primary debtor, this sentence may be crossed out or omitted on your cosigner notice.
This notice is not required when you receive benefits from the contract, such as when you buy goods, take out a loan, or open a joint credit-card account with another person. In these cases, you would be a co-buyer, co-borrower, or co-applicant (co-cardholder) rather than a cosigner. Therefore, the creditor would not be required to provide the notice. Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions: In Contra Costa County, California, the Federal Trade Commission (FTC) mandates a Guarantor — Consignor Notice for specific transactions. This notice serves to inform the parties involved in the transaction about the rights and responsibilities of the guarantor and consignor. The FTC requires this notice to be provided in specific cases where a guarantor is involved in any financial agreement or transaction as a cosigner or surety. Additionally, the consignor notice is applicable in transactions where one party entrusts the possession of goods to another party for the purpose of selling them. Here are the key types of Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions: 1. Guarantor Notice: This notice is required when a guarantor provides a guarantee or co-signs a contract with another party, promising to fulfill the obligations of the primary debtor if they are unable to do so. This notice ensures that both the guarantor and the primary debtor are aware of their respective roles and responsibilities in the transaction. 2. Consignor Notice: The consignor notice is required when one party, known as the consignor, entrusts goods to another party, known as the consignee, for the purpose of selling them. This notice ensures that both parties understand their obligations regarding the possession, sale, and return of the consigned goods. These types of notices are essential for consumer protection and to prevent any misunderstandings or disputes between the parties involved. By complying with the FTC's guidelines, individuals and businesses in Contra Costa County can ensure transparency and fairness in their financial and consignment transactions. It is important to note that failure to provide the Guarantor — Consignor Notice as required by the FTC may result in legal consequences. Therefore, whether you are a guarantor or consignor in Contra Costa County, it is crucial to be aware of your rights and responsibilities and ensure compliance with these regulations. For detailed information on the specific content and format of the Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions, it is advisable to refer to the FTC guidelines or consult with legal professionals specializing in consumer protection and contract law in Contra Costa County. Compliance with these regulations will help foster trust and transparency in financial and consignment transactions throughout the county.
Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions: In Contra Costa County, California, the Federal Trade Commission (FTC) mandates a Guarantor — Consignor Notice for specific transactions. This notice serves to inform the parties involved in the transaction about the rights and responsibilities of the guarantor and consignor. The FTC requires this notice to be provided in specific cases where a guarantor is involved in any financial agreement or transaction as a cosigner or surety. Additionally, the consignor notice is applicable in transactions where one party entrusts the possession of goods to another party for the purpose of selling them. Here are the key types of Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions: 1. Guarantor Notice: This notice is required when a guarantor provides a guarantee or co-signs a contract with another party, promising to fulfill the obligations of the primary debtor if they are unable to do so. This notice ensures that both the guarantor and the primary debtor are aware of their respective roles and responsibilities in the transaction. 2. Consignor Notice: The consignor notice is required when one party, known as the consignor, entrusts goods to another party, known as the consignee, for the purpose of selling them. This notice ensures that both parties understand their obligations regarding the possession, sale, and return of the consigned goods. These types of notices are essential for consumer protection and to prevent any misunderstandings or disputes between the parties involved. By complying with the FTC's guidelines, individuals and businesses in Contra Costa County can ensure transparency and fairness in their financial and consignment transactions. It is important to note that failure to provide the Guarantor — Consignor Notice as required by the FTC may result in legal consequences. Therefore, whether you are a guarantor or consignor in Contra Costa County, it is crucial to be aware of your rights and responsibilities and ensure compliance with these regulations. For detailed information on the specific content and format of the Contra Costa California Guarantor — Consignor Notice Required by FTC on certain Transactions, it is advisable to refer to the FTC guidelines or consult with legal professionals specializing in consumer protection and contract law in Contra Costa County. Compliance with these regulations will help foster trust and transparency in financial and consignment transactions throughout the county.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.