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. The Harris Texas Guarantor — Consignor Notice Required by FTC on certain Transactions is an important legal requirement imposed by the Federal Trade Commission (FTC) in specific types of transactions. This notice acts as a protective measure for both the guarantor and the consignor involved in the transaction and ensures transparency and fair dealings. The Harris Texas Guarantor — Consignor Notice is mandated when certain transactions take place, typically involving the transfer or consignment of valuable assets, goods, or property by one party to another. This notice serves to inform both parties about their rights and responsibilities, as well as any potential risks or liabilities they may face. By providing a detailed description of the transaction, the Harris Texas Guarantor — Consignor Notice clarifies the roles and obligations of the guarantor and consignor. The guarantor, often a financial institution or individual, pledges to secure the transaction and fulfill any financial obligations that the consignor may be unable to meet. This assures the consignor that their interests will be protected should unforeseen circumstances arise. Additionally, the notice outlines the consignor's responsibilities and highlights their ownership or possession rights over the consigned goods or assets until their sale or return. It emphasizes the importance of maintaining the condition and value of the consigned property and the consignor's obligations to report any potential issues or incidents promptly. Different types of Harris Texas Guarantor — Consignor Notices may exist depending on the nature of the transaction. For instance, in cases involving the consignment of high-value items like luxury artwork, collectibles, or vehicles, additional clauses and requirements may be added to the notice to ensure the parties are fully informed and protected. The FTC's involvement in this requirement is crucial as it ensures that both the guarantor and consignor are treated fairly, and that no deceptive or unfair practices occur during the course of the transaction. Any violation of the notice can result in penalties or legal action by the FTC, which further underscores the importance of compliance. In summary, the Harris Texas Guarantor — Consignor Notice Required by FTC on certain Transactions is a legal requirement that safeguards the rights and ensures the fair treatment of both the guarantor and consignor in specified transactions. It establishes transparency, clarifies responsibilities, and provides a mechanism for resolving potential disputes. Compliance with this notice is essential to uphold the principles of fair trade and protect the interests of all parties involved.
The Harris Texas Guarantor — Consignor Notice Required by FTC on certain Transactions is an important legal requirement imposed by the Federal Trade Commission (FTC) in specific types of transactions. This notice acts as a protective measure for both the guarantor and the consignor involved in the transaction and ensures transparency and fair dealings. The Harris Texas Guarantor — Consignor Notice is mandated when certain transactions take place, typically involving the transfer or consignment of valuable assets, goods, or property by one party to another. This notice serves to inform both parties about their rights and responsibilities, as well as any potential risks or liabilities they may face. By providing a detailed description of the transaction, the Harris Texas Guarantor — Consignor Notice clarifies the roles and obligations of the guarantor and consignor. The guarantor, often a financial institution or individual, pledges to secure the transaction and fulfill any financial obligations that the consignor may be unable to meet. This assures the consignor that their interests will be protected should unforeseen circumstances arise. Additionally, the notice outlines the consignor's responsibilities and highlights their ownership or possession rights over the consigned goods or assets until their sale or return. It emphasizes the importance of maintaining the condition and value of the consigned property and the consignor's obligations to report any potential issues or incidents promptly. Different types of Harris Texas Guarantor — Consignor Notices may exist depending on the nature of the transaction. For instance, in cases involving the consignment of high-value items like luxury artwork, collectibles, or vehicles, additional clauses and requirements may be added to the notice to ensure the parties are fully informed and protected. The FTC's involvement in this requirement is crucial as it ensures that both the guarantor and consignor are treated fairly, and that no deceptive or unfair practices occur during the course of the transaction. Any violation of the notice can result in penalties or legal action by the FTC, which further underscores the importance of compliance. In summary, the Harris Texas Guarantor — Consignor Notice Required by FTC on certain Transactions is a legal requirement that safeguards the rights and ensures the fair treatment of both the guarantor and consignor in specified transactions. It establishes transparency, clarifies responsibilities, and provides a mechanism for resolving potential disputes. Compliance with this notice is essential to uphold the principles of fair trade and protect the interests of all parties involved.
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.
