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. Cook Illinois Guarantor — Consignor Notice Required by FTC on certain Transactions is a legal requirement implemented by the Federal Trade Commission (FTC) to protect consumers and ensure fair business practices in certain transactions. This notice is specifically mandated for transactions involving guarantor and consignor roles in the Cook Illinois area. Here is a detailed description of what this notice entails: The Cook Illinois Guarantor — Consignor Notice is a mandatory disclosure that must be provided to consumers participating in transactions where a guarantor or consignor is involved. The purpose of this notice is to inform consumers about their rights and obligations in these specific types of transactions, as well as any potential risks and liabilities they may face. In Cook Illinois, a guarantor is an individual or entity that agrees to take responsibility for the repayment of a loan or debt if the primary borrower defaults. On the other hand, a consignor is someone who entrusts their property or goods to another party for sale or distribution, while retaining ownership until the property is sold or distributed. The FTC requires this notice to be given to consumers to ensure transparency and protect their interests. It helps consumers understand the terms and conditions of the transaction, potential risks involved, and their legal rights and remedies. Keywords: Cook Illinois, Guarantor, Consignor, Notice, Required, FTC, transactions, consumers, legal requirement, fair business practices, mandatory disclosure, rights, obligations, risks, liabilities, loan, debt, default, property, goods, sale, distribution, transparency, terms and conditions, legal rights, remedies. Different types of Cook Illinois Guarantor — Consignor Notice Required by FTC on certain Transactions may include variations based on the specific types of transactions or industries involved. Examples could include Guarantor — Consignor Notice for auto financing, real estate transactions, business loans, or consignment sales. The exact specifications and requirements for such notices may differ depending on the nature of the transaction and the applicable laws and regulations of Cook Illinois.
Cook Illinois Guarantor — Consignor Notice Required by FTC on certain Transactions is a legal requirement implemented by the Federal Trade Commission (FTC) to protect consumers and ensure fair business practices in certain transactions. This notice is specifically mandated for transactions involving guarantor and consignor roles in the Cook Illinois area. Here is a detailed description of what this notice entails: The Cook Illinois Guarantor — Consignor Notice is a mandatory disclosure that must be provided to consumers participating in transactions where a guarantor or consignor is involved. The purpose of this notice is to inform consumers about their rights and obligations in these specific types of transactions, as well as any potential risks and liabilities they may face. In Cook Illinois, a guarantor is an individual or entity that agrees to take responsibility for the repayment of a loan or debt if the primary borrower defaults. On the other hand, a consignor is someone who entrusts their property or goods to another party for sale or distribution, while retaining ownership until the property is sold or distributed. The FTC requires this notice to be given to consumers to ensure transparency and protect their interests. It helps consumers understand the terms and conditions of the transaction, potential risks involved, and their legal rights and remedies. Keywords: Cook Illinois, Guarantor, Consignor, Notice, Required, FTC, transactions, consumers, legal requirement, fair business practices, mandatory disclosure, rights, obligations, risks, liabilities, loan, debt, default, property, goods, sale, distribution, transparency, terms and conditions, legal rights, remedies. Different types of Cook Illinois Guarantor — Consignor Notice Required by FTC on certain Transactions may include variations based on the specific types of transactions or industries involved. Examples could include Guarantor — Consignor Notice for auto financing, real estate transactions, business loans, or consignment sales. The exact specifications and requirements for such notices may differ depending on the nature of the transaction and the applicable laws and regulations of Cook Illinois.
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.
