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. Suffolk New York Guarantor — Consignor Notice Required by FTC on certain Transactions In Suffolk County, New York, the FTC (Federal Trade Commission) has mandated specific requirements pertaining to Guarantor — Consignor notice in certain transactions to protect consumers and ensure fair business practices. This notice is essential for transactions involving a guarantor or consignor, providing them with vital information and protections. The Suffolk New York Guarantor — Consignor Notice is a legal document that outlines the terms and conditions of the agreement between the guarantor/consignor and the party they are entering into a transaction with. It aims to foster transparency and establish clear responsibilities for all parties involved. Outlined below are different types of Suffolk New York Guarantor — Consignor Notices required by the FTC on certain transactions: 1. Guarantor Notice: This notice specifically pertains to transactions where a guarantor is involved. A guarantor is an individual or entity that agrees to pay the debt or fulfill the obligations of another party if they fail to do so. The Guarantor Notice provides information regarding the guarantor's liability, the terms of repayment, and any potential consequences for non-compliance. 2. Consignor Notice: This type of notice focuses on transactions involving consignors. A consignor is someone who entrusts their goods or property to another person or company for sale. The Consignor Notice outlines the consignor's rights, responsibilities, and potential risks associated with the consignment agreement. It may include details concerning the consignor's ownership, commission rates, payment terms, and procedures for retrieving unsold items. These notices serve as crucial tools for protecting both guarantors and consignors from fraudulent or unfair practices. By providing essential information upfront, they ensure that all parties understand their obligations, liabilities, and rights before entering into any agreement. By complying with the FTC's requirement for Guarantor — Consignor Notice in Suffolk County, New York transactions, businesses and individuals demonstrate their commitment to ethical conduct and consumer protection. It is essential for all parties involved to carefully review and understand these notices before proceeding with any transaction to mitigate potential risks and conflicts. In conclusion, the Suffolk New York Guarantor — Consignor Notice required by the FTC on certain transactions plays a vital role in safeguarding the rights and interests of both guarantors and consignors. It establishes a foundation for fair and transparent transactions while ensuring compliance with legal obligations.
Suffolk New York Guarantor — Consignor Notice Required by FTC on certain Transactions In Suffolk County, New York, the FTC (Federal Trade Commission) has mandated specific requirements pertaining to Guarantor — Consignor notice in certain transactions to protect consumers and ensure fair business practices. This notice is essential for transactions involving a guarantor or consignor, providing them with vital information and protections. The Suffolk New York Guarantor — Consignor Notice is a legal document that outlines the terms and conditions of the agreement between the guarantor/consignor and the party they are entering into a transaction with. It aims to foster transparency and establish clear responsibilities for all parties involved. Outlined below are different types of Suffolk New York Guarantor — Consignor Notices required by the FTC on certain transactions: 1. Guarantor Notice: This notice specifically pertains to transactions where a guarantor is involved. A guarantor is an individual or entity that agrees to pay the debt or fulfill the obligations of another party if they fail to do so. The Guarantor Notice provides information regarding the guarantor's liability, the terms of repayment, and any potential consequences for non-compliance. 2. Consignor Notice: This type of notice focuses on transactions involving consignors. A consignor is someone who entrusts their goods or property to another person or company for sale. The Consignor Notice outlines the consignor's rights, responsibilities, and potential risks associated with the consignment agreement. It may include details concerning the consignor's ownership, commission rates, payment terms, and procedures for retrieving unsold items. These notices serve as crucial tools for protecting both guarantors and consignors from fraudulent or unfair practices. By providing essential information upfront, they ensure that all parties understand their obligations, liabilities, and rights before entering into any agreement. By complying with the FTC's requirement for Guarantor — Consignor Notice in Suffolk County, New York transactions, businesses and individuals demonstrate their commitment to ethical conduct and consumer protection. It is essential for all parties involved to carefully review and understand these notices before proceeding with any transaction to mitigate potential risks and conflicts. In conclusion, the Suffolk New York Guarantor — Consignor Notice required by the FTC on certain transactions plays a vital role in safeguarding the rights and interests of both guarantors and consignors. It establishes a foundation for fair and transparent transactions while ensuring compliance with legal obligations.
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.
