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. Phoenix Arizona Guarantor — Consignor Notice Required by FTC on Certain Transactions In Phoenix, Arizona, the Guarantor — Consignor Notice is a requirement set by the Federal Trade Commission (FTC) for certain transactions. This notice is designed to protect both the guarantor and consignor in various business arrangements and ensure transparency and proper disclosure of their obligations and rights. It is important to understand the different types of Guarantor — Consignor Notices that may be required based on the specific transaction. 1. Guarantor Notice: In certain transactions, individuals or entities act as guarantors, providing a guarantee to pay a debt or fulfill an obligation if the primary debtor fails to do so. In such cases, the FTC stipulates that a Guarantor Notice must be given to the guarantor, clearly outlining the terms of the guarantee, potential liabilities, and any conditions under which the guarantor may be released from their obligations. This notice helps the guarantor understand their responsibilities and possible financial risks involved. 2. Consignor Notice: In consignment agreements, where a consignor entrusts goods to a consignee for sale, the FTC requires a Consignor Notice to be provided to the consignor. This notice informs the consignor about their rights, responsibilities, and potential risks involved in consigning their goods. It details important aspects such as payment terms, commission percentages, liability for loss or damage, and any conditions for the return of unsold goods. The Consignor Notice ensures transparency and helps protect the consignor's interests in the transaction. 3. Combined Guarantor — Consignor Notice: In some cases, a transaction may involve both guarantor and consignor roles. For instance, when a guarantor consigns goods as collateral, a Combined Guarantor — Consignor Notice is required. This notice serves to inform the individual or entity acting as both guarantor and consignor about the terms and conditions concerning both aspects of their involvement. It provides a comprehensive overview of the obligations, liabilities, and rights associated with these dual roles. Compliance with the FTC's requirements regarding Guarantor — Consignor Notices is essential for businesses and individuals engaging in applicable transactions in Phoenix, Arizona. These notices play an important role in safeguarding the interests of both parties involved and fostering a fair and transparent business environment. It is advisable for businesses and individuals to consult legal professionals familiar with FTC regulations to ensure complete adherence and proper implementation of Guarantor — Consignor Notices in relevant transactions.
Phoenix Arizona Guarantor — Consignor Notice Required by FTC on Certain Transactions In Phoenix, Arizona, the Guarantor — Consignor Notice is a requirement set by the Federal Trade Commission (FTC) for certain transactions. This notice is designed to protect both the guarantor and consignor in various business arrangements and ensure transparency and proper disclosure of their obligations and rights. It is important to understand the different types of Guarantor — Consignor Notices that may be required based on the specific transaction. 1. Guarantor Notice: In certain transactions, individuals or entities act as guarantors, providing a guarantee to pay a debt or fulfill an obligation if the primary debtor fails to do so. In such cases, the FTC stipulates that a Guarantor Notice must be given to the guarantor, clearly outlining the terms of the guarantee, potential liabilities, and any conditions under which the guarantor may be released from their obligations. This notice helps the guarantor understand their responsibilities and possible financial risks involved. 2. Consignor Notice: In consignment agreements, where a consignor entrusts goods to a consignee for sale, the FTC requires a Consignor Notice to be provided to the consignor. This notice informs the consignor about their rights, responsibilities, and potential risks involved in consigning their goods. It details important aspects such as payment terms, commission percentages, liability for loss or damage, and any conditions for the return of unsold goods. The Consignor Notice ensures transparency and helps protect the consignor's interests in the transaction. 3. Combined Guarantor — Consignor Notice: In some cases, a transaction may involve both guarantor and consignor roles. For instance, when a guarantor consigns goods as collateral, a Combined Guarantor — Consignor Notice is required. This notice serves to inform the individual or entity acting as both guarantor and consignor about the terms and conditions concerning both aspects of their involvement. It provides a comprehensive overview of the obligations, liabilities, and rights associated with these dual roles. Compliance with the FTC's requirements regarding Guarantor — Consignor Notices is essential for businesses and individuals engaging in applicable transactions in Phoenix, Arizona. These notices play an important role in safeguarding the interests of both parties involved and fostering a fair and transparent business environment. It is advisable for businesses and individuals to consult legal professionals familiar with FTC regulations to ensure complete adherence and proper implementation of Guarantor — Consignor Notices in relevant transactions.
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.