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. Queens New York Guarantor — Consignor Notice Required by FTC on certain Transactions As per the Federal Trade Commission (FTC), there are specific regulations in place regarding Queens, New York guarantor — consignor notices required for certain transactions. These notices play a crucial role in protecting consumers and ensuring transparency in various transactional processes. The purpose of the Queens, New York guarantor — consignor notice is to inform individuals about the responsibilities, rights, and obligations involved when acting as a guarantor or consignor in specific transactions. These transactions can vary in nature, including but not limited to: 1. Guarantor Notice: When an individual agrees to act as a guarantor, they become responsible for fulfilling the financial obligations of the primary borrower if they default on their payments. The guarantor notice highlights the terms, conditions, and potential risks associated with guaranteeing a loan or debt. It enables the guarantor to make an informed decision and fully comprehend the implications of their role in the transaction. 2. Consignor Notice: In certain transactions, individuals act as consignors, typically in the context of consignment sales or resale arrangements. The consignor transfers ownership of goods or products to the consignee, usually a retailer, who sells the items on their behalf. The consignor notice mandated by the FTC ensures that consignors are knowledgeable about their rights, responsibilities, and potential liabilities related to consignment sales. These Queens, New York guarantor — consignor notices, required by the FTC, aim to protect consumers from potential financial risks, misrepresentation, or unscrupulous practices. They outline important factors such as: 1. Liability: The extent to which the guarantor or consignor may be held responsible for the obligations of the primary borrower or the consignee, respectively. 2. Costs and Fees: Any charges, fees, or costs associated with guaranteeing a loan or engaging in consignment sales, such as commission fees or repair costs. 3. Rights and Remedies: The guarantor's or consignor's rights in case of default or breach of contract by the borrower or consignee, including options for recourse or reimbursement. 4. Disclosure Requirements: Information that must be provided to the guarantor or consignor, such as the terms of the loan, itemized costs, estimated resale prices, or the consignee's responsibilities. It is crucial for individuals involved in these specific transactions in Queens, New York to be aware of the FTC's requirements and the need for the guarantor — consignor notice. These notices serve as essential documents to safeguard the rights and interests of all parties involved, ensuring transparency and fair dealings within the bounds of the law.
Queens New York Guarantor — Consignor Notice Required by FTC on certain Transactions As per the Federal Trade Commission (FTC), there are specific regulations in place regarding Queens, New York guarantor — consignor notices required for certain transactions. These notices play a crucial role in protecting consumers and ensuring transparency in various transactional processes. The purpose of the Queens, New York guarantor — consignor notice is to inform individuals about the responsibilities, rights, and obligations involved when acting as a guarantor or consignor in specific transactions. These transactions can vary in nature, including but not limited to: 1. Guarantor Notice: When an individual agrees to act as a guarantor, they become responsible for fulfilling the financial obligations of the primary borrower if they default on their payments. The guarantor notice highlights the terms, conditions, and potential risks associated with guaranteeing a loan or debt. It enables the guarantor to make an informed decision and fully comprehend the implications of their role in the transaction. 2. Consignor Notice: In certain transactions, individuals act as consignors, typically in the context of consignment sales or resale arrangements. The consignor transfers ownership of goods or products to the consignee, usually a retailer, who sells the items on their behalf. The consignor notice mandated by the FTC ensures that consignors are knowledgeable about their rights, responsibilities, and potential liabilities related to consignment sales. These Queens, New York guarantor — consignor notices, required by the FTC, aim to protect consumers from potential financial risks, misrepresentation, or unscrupulous practices. They outline important factors such as: 1. Liability: The extent to which the guarantor or consignor may be held responsible for the obligations of the primary borrower or the consignee, respectively. 2. Costs and Fees: Any charges, fees, or costs associated with guaranteeing a loan or engaging in consignment sales, such as commission fees or repair costs. 3. Rights and Remedies: The guarantor's or consignor's rights in case of default or breach of contract by the borrower or consignee, including options for recourse or reimbursement. 4. Disclosure Requirements: Information that must be provided to the guarantor or consignor, such as the terms of the loan, itemized costs, estimated resale prices, or the consignee's responsibilities. It is crucial for individuals involved in these specific transactions in Queens, New York to be aware of the FTC's requirements and the need for the guarantor — consignor notice. These notices serve as essential documents to safeguard the rights and interests of all parties involved, ensuring transparency and fair dealings within the bounds of the law.
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.
