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. Santa Clara California Guarantor — Consignor Notice Required by FTC on Certain Transactions In Santa Clara, California, the Federal Trade Commission (FTC) has introduced a specific notice requirement for certain transactions involving guarantors and consignors. This notice aims to protect the rights and interests of consumers and ensure fair trade practices within the region. The FTC's Guarantor — Consignor Notice mandates that individuals or entities acting as guarantors or consignors in particular transactions must provide clear and detailed information to the consumers involved. This notice serves as a disclosure mechanism, enabling consumers to make informed decisions and understand the potential risks and responsibilities associated with such transactions. Key Details of Santa Clara California Guarantor — Consignor Notice Required by FTC: 1. Definition of Guarantor and Consignor: The notice clarifies what constitutes a guarantor and a consignor in the context of the specific transaction, providing individuals with a better understanding of their roles and obligations. 2. Disclosure of Liability: The notice requires guarantors and consignors to explicitly disclose the extent of their liability in case of default or non-payment by the primary party involved in the transaction. This information empowers consumers to evaluate potential risks and make informed choices. 3. Clear Identification of Parties Involved: The FTC emphasizes the importance of accurately identifying all parties involved in the transaction, including the guarantor, consignor, and primary party. This identification ensures transparency and enables consumers to seek recourse or address any issues that may arise during the transaction. Types of Santa Clara California Guarantor — Consignor Notices: 1. Guarantor Notice: This notice is applicable when an individual or entity guarantees the fulfillment of obligations or payments by the primary party in the transaction. It details the guarantor's liability and includes relevant contact information for inquiries or disputes. 2. Consignor Notice: This notice is specific to consignment transactions, where one party entrusts goods or items to another party for sale or distribution. It outlines the consignor's rights, responsibilities, and payment terms, ensuring that consumers are aware of their legal rights regarding the consigned goods. Overall, the Santa Clara California Guarantor — Consignor Notice Required by FTC on certain transactions is a crucial consumer protection measure. It establishes transparency, promotes fair trade practices, and facilitates informed decision-making. Individuals and entities involved in transactions as guarantors or consignors have a legal obligation to comply with this requirement, allowing consumers to navigate transactions more confidently and comfortably.
Santa Clara California Guarantor — Consignor Notice Required by FTC on Certain Transactions In Santa Clara, California, the Federal Trade Commission (FTC) has introduced a specific notice requirement for certain transactions involving guarantors and consignors. This notice aims to protect the rights and interests of consumers and ensure fair trade practices within the region. The FTC's Guarantor — Consignor Notice mandates that individuals or entities acting as guarantors or consignors in particular transactions must provide clear and detailed information to the consumers involved. This notice serves as a disclosure mechanism, enabling consumers to make informed decisions and understand the potential risks and responsibilities associated with such transactions. Key Details of Santa Clara California Guarantor — Consignor Notice Required by FTC: 1. Definition of Guarantor and Consignor: The notice clarifies what constitutes a guarantor and a consignor in the context of the specific transaction, providing individuals with a better understanding of their roles and obligations. 2. Disclosure of Liability: The notice requires guarantors and consignors to explicitly disclose the extent of their liability in case of default or non-payment by the primary party involved in the transaction. This information empowers consumers to evaluate potential risks and make informed choices. 3. Clear Identification of Parties Involved: The FTC emphasizes the importance of accurately identifying all parties involved in the transaction, including the guarantor, consignor, and primary party. This identification ensures transparency and enables consumers to seek recourse or address any issues that may arise during the transaction. Types of Santa Clara California Guarantor — Consignor Notices: 1. Guarantor Notice: This notice is applicable when an individual or entity guarantees the fulfillment of obligations or payments by the primary party in the transaction. It details the guarantor's liability and includes relevant contact information for inquiries or disputes. 2. Consignor Notice: This notice is specific to consignment transactions, where one party entrusts goods or items to another party for sale or distribution. It outlines the consignor's rights, responsibilities, and payment terms, ensuring that consumers are aware of their legal rights regarding the consigned goods. Overall, the Santa Clara California Guarantor — Consignor Notice Required by FTC on certain transactions is a crucial consumer protection measure. It establishes transparency, promotes fair trade practices, and facilitates informed decision-making. Individuals and entities involved in transactions as guarantors or consignors have a legal obligation to comply with this requirement, allowing consumers to navigate transactions more confidently and comfortably.
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.
