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. Fairfax Virginia Guarantor — Consignor Notice Required by FTC on certain Transactions In Fairfax, Virginia, the Federal Trade Commission (FTC) has instituted regulations regarding Guarantor — Consignor notices for specific transactions. These notices are crucial in ensuring transparency and protection for both guarantors and consignors involved in various financial agreements. Under the FTC's requirements, a Guarantor — Consignor Notice must consist of detailed information about the transaction, providing the necessary terms and conditions that the parties involved should be aware of. This notice aims to clarify the obligations, responsibilities, and potential risks associated with the transaction. The FTC mandates that such notices be prominently displayed and easily understandable to avoid any confusion or misinformation. The key elements that must be included in the Guarantor — Consignor Notice involve: 1. Transaction Description: A thorough explanation of the nature of the transaction, including the purpose, duration, and the specific parties involved. 2. Guarantor Responsibilities: Detailed information regarding the potential liabilities and obligations a guarantor undertakes in the transaction. This includes the requirements for making payments, consequences for defaulting, and potential legal ramifications. 3. Consignor Rights: Notification of the consignor's rights in the transaction, including ownership of the consigned property, financial expectations, any fees or commissions involved, and the consignor's ability to terminate the agreement. 4. Terms and Conditions: A clear, concise, and comprehensive summary of the terms and conditions governing the transaction. This encompasses the duration of the agreement, termination clauses, dispute resolution procedures, and any additional agreements or restrictions specific to the transaction. 5. Disclosure Requirements: Full disclosure of any additional charges, fees, or interests that may be imposed on the guarantor or consignor throughout the transaction. This ensures transparency and helps prevent any unexpected financial burdens or conflicts. It is important to note that while the FTC has specific guidelines for Guarantor — Consignor Notices, the exact names of different types of these notices may not be specified. However, the content and requirements mentioned above apply to various types of transactions wherein a guarantor and a consignor are involved. These may include situations such as guaranteed loans, consignment agreements, or arrangements where a guarantor assumes financial responsibility on behalf of a consignor. By adhering to the FTC's regulations and incorporating a comprehensive Guarantor — Consignor Notice, parties involved in these transactions can ensure transparency, reduce potential disputes, and protect their legal rights.
Fairfax Virginia Guarantor — Consignor Notice Required by FTC on certain Transactions In Fairfax, Virginia, the Federal Trade Commission (FTC) has instituted regulations regarding Guarantor — Consignor notices for specific transactions. These notices are crucial in ensuring transparency and protection for both guarantors and consignors involved in various financial agreements. Under the FTC's requirements, a Guarantor — Consignor Notice must consist of detailed information about the transaction, providing the necessary terms and conditions that the parties involved should be aware of. This notice aims to clarify the obligations, responsibilities, and potential risks associated with the transaction. The FTC mandates that such notices be prominently displayed and easily understandable to avoid any confusion or misinformation. The key elements that must be included in the Guarantor — Consignor Notice involve: 1. Transaction Description: A thorough explanation of the nature of the transaction, including the purpose, duration, and the specific parties involved. 2. Guarantor Responsibilities: Detailed information regarding the potential liabilities and obligations a guarantor undertakes in the transaction. This includes the requirements for making payments, consequences for defaulting, and potential legal ramifications. 3. Consignor Rights: Notification of the consignor's rights in the transaction, including ownership of the consigned property, financial expectations, any fees or commissions involved, and the consignor's ability to terminate the agreement. 4. Terms and Conditions: A clear, concise, and comprehensive summary of the terms and conditions governing the transaction. This encompasses the duration of the agreement, termination clauses, dispute resolution procedures, and any additional agreements or restrictions specific to the transaction. 5. Disclosure Requirements: Full disclosure of any additional charges, fees, or interests that may be imposed on the guarantor or consignor throughout the transaction. This ensures transparency and helps prevent any unexpected financial burdens or conflicts. It is important to note that while the FTC has specific guidelines for Guarantor — Consignor Notices, the exact names of different types of these notices may not be specified. However, the content and requirements mentioned above apply to various types of transactions wherein a guarantor and a consignor are involved. These may include situations such as guaranteed loans, consignment agreements, or arrangements where a guarantor assumes financial responsibility on behalf of a consignor. By adhering to the FTC's regulations and incorporating a comprehensive Guarantor — Consignor Notice, parties involved in these transactions can ensure transparency, reduce potential disputes, and protect their legal rights.
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.
