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. Orange California Guarantor — Consignor Notice Required by FTC on certain Transactions In Orange, California, the Federal Trade Commission (FTC) has enforced specific guidelines pertaining to the Guarantor — Consignor Notice, which must be provided in certain transactions. This notice aims to inform both guarantors and consignors about their rights and obligations, ensuring transparency and fair practices. The Guarantor — Consignor Notice is required for various types of transactions, including but not limited to: 1. Auto Loans: When individuals in Orange, California, seek financing for a vehicle purchase, the Guarantor — Consignor Notice must be provided to all parties involved. This ensures that guarantors and consignors understand their roles and responsibilities in the event of default or non-payment. 2. Apartment Rentals: In Orange, California, rental agreements often involve the need for a guarantor or consignor. Whether someone is guaranteeing the lease on behalf of a tenant or acting as a consignor, the FTC requires that the Guarantor — Consignor Notice be given to all relevant parties. This notice protects both the landlord and all parties involved, ensuring the lease obligations are understood. 3. Small Business Financing: When entrepreneurs and small business owners in Orange, California, seek financial assistance from lenders or investors, the Guarantor — Consignor Notice becomes vital. This notice ensures that all parties involved understand the potential risks, payments, and consequences if the borrower defaults on their obligations. 4. Student Loans: As obtaining education often involves borrowing funds, it is commonplace in Orange, California, for guarantors or consignors to be involved in student loan agreements. The Guarantor — Consignor Notice is crucial in this context to inform all parties about their roles and obligations, offering them protection and understanding. The FTC mandates that the Guarantor — Consignor Notice includes relevant information such as the obligations of the guarantor or consignor, potential liabilities, the impact on their credit scores, and the steps taken in case of default. This notice ensures that all parties involved have a comprehensive understanding of their rights and responsibilities in the aforementioned types of transactions. In conclusion, Orange, California, requires the Guarantor — Consignor Notice for various transactions including auto loans, apartment rentals, small business financing, and student loans. This notice is necessary for promoting fair practices and ensuring that all parties involved are well-informed about their roles, obligations, and potential consequences.
Orange California Guarantor — Consignor Notice Required by FTC on certain Transactions In Orange, California, the Federal Trade Commission (FTC) has enforced specific guidelines pertaining to the Guarantor — Consignor Notice, which must be provided in certain transactions. This notice aims to inform both guarantors and consignors about their rights and obligations, ensuring transparency and fair practices. The Guarantor — Consignor Notice is required for various types of transactions, including but not limited to: 1. Auto Loans: When individuals in Orange, California, seek financing for a vehicle purchase, the Guarantor — Consignor Notice must be provided to all parties involved. This ensures that guarantors and consignors understand their roles and responsibilities in the event of default or non-payment. 2. Apartment Rentals: In Orange, California, rental agreements often involve the need for a guarantor or consignor. Whether someone is guaranteeing the lease on behalf of a tenant or acting as a consignor, the FTC requires that the Guarantor — Consignor Notice be given to all relevant parties. This notice protects both the landlord and all parties involved, ensuring the lease obligations are understood. 3. Small Business Financing: When entrepreneurs and small business owners in Orange, California, seek financial assistance from lenders or investors, the Guarantor — Consignor Notice becomes vital. This notice ensures that all parties involved understand the potential risks, payments, and consequences if the borrower defaults on their obligations. 4. Student Loans: As obtaining education often involves borrowing funds, it is commonplace in Orange, California, for guarantors or consignors to be involved in student loan agreements. The Guarantor — Consignor Notice is crucial in this context to inform all parties about their roles and obligations, offering them protection and understanding. The FTC mandates that the Guarantor — Consignor Notice includes relevant information such as the obligations of the guarantor or consignor, potential liabilities, the impact on their credit scores, and the steps taken in case of default. This notice ensures that all parties involved have a comprehensive understanding of their rights and responsibilities in the aforementioned types of transactions. In conclusion, Orange, California, requires the Guarantor — Consignor Notice for various transactions including auto loans, apartment rentals, small business financing, and student loans. This notice is necessary for promoting fair practices and ensuring that all parties involved are well-informed about their roles, obligations, and potential consequences.
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.
