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. Travis Texas Guarantor — Consignor Notice Required by FTC on Certain Transactions: In Travis, Texas, the Federal Trade Commission (FTC) has mandated a strict requirement for a Guarantor — Consignor Notice on certain transactions. This notice is essential for both guarantors and consignors to ensure compliance with consumer protection regulations. The Travis Texas Guarantor — Consignor Notice serves as a legal document outlining the obligations and rights of both parties involved in a transaction. It aims to provide transparency and protect the interests of consumers from potential fraudulent activities. The notice must include specific information about the guarantor and consignor, such as their names, contact details, and relationship to the transaction. Additionally, it should clearly specify the nature and purpose of the transaction, including the goods or services involved, the payment terms, and any applicable fees or penalties. There are different types of Travis Texas Guarantor — Consignor Notices required by the FTC on certain transactions, depending on the nature of the transaction: 1. Guarantor Notice: This type of notice is primarily used when a third party, known as a guarantor, agrees to assume responsibility for the debt or obligations of the primary party involved in the transaction. The Guarantor Notice outlines the responsibilities, liabilities, and consequences associated with such an arrangement. 2. Consignor Notice: In instances where a consignor entrusts their goods to another party for sale or distribution, a Consignor Notice is required. This notice ensures that both parties understand the terms and conditions of the consignment agreement, including the consignor's rights, payment arrangements, and potential liabilities. It is important to note that failing to provide the required Travis Texas Guarantor — Consignor Notice on certain transactions may result in severe penalties, including legal action, fines, and damage to one's reputation. Therefore, individuals and businesses involved in such transactions must carefully adhere to all FTC regulations to avoid any potential legal consequences. In conclusion, the Travis Texas Guarantor — Consignor Notice is an essential requirement by the FTC for certain transactions in Travis, Texas. This notice protects consumers and ensures that all parties involved fully understand their obligations and rights. By complying with this regulation, individuals and businesses can contribute to maintaining a fair and transparent business environment.
Travis Texas Guarantor — Consignor Notice Required by FTC on Certain Transactions: In Travis, Texas, the Federal Trade Commission (FTC) has mandated a strict requirement for a Guarantor — Consignor Notice on certain transactions. This notice is essential for both guarantors and consignors to ensure compliance with consumer protection regulations. The Travis Texas Guarantor — Consignor Notice serves as a legal document outlining the obligations and rights of both parties involved in a transaction. It aims to provide transparency and protect the interests of consumers from potential fraudulent activities. The notice must include specific information about the guarantor and consignor, such as their names, contact details, and relationship to the transaction. Additionally, it should clearly specify the nature and purpose of the transaction, including the goods or services involved, the payment terms, and any applicable fees or penalties. There are different types of Travis Texas Guarantor — Consignor Notices required by the FTC on certain transactions, depending on the nature of the transaction: 1. Guarantor Notice: This type of notice is primarily used when a third party, known as a guarantor, agrees to assume responsibility for the debt or obligations of the primary party involved in the transaction. The Guarantor Notice outlines the responsibilities, liabilities, and consequences associated with such an arrangement. 2. Consignor Notice: In instances where a consignor entrusts their goods to another party for sale or distribution, a Consignor Notice is required. This notice ensures that both parties understand the terms and conditions of the consignment agreement, including the consignor's rights, payment arrangements, and potential liabilities. It is important to note that failing to provide the required Travis Texas Guarantor — Consignor Notice on certain transactions may result in severe penalties, including legal action, fines, and damage to one's reputation. Therefore, individuals and businesses involved in such transactions must carefully adhere to all FTC regulations to avoid any potential legal consequences. In conclusion, the Travis Texas Guarantor — Consignor Notice is an essential requirement by the FTC for certain transactions in Travis, Texas. This notice protects consumers and ensures that all parties involved fully understand their obligations and rights. By complying with this regulation, individuals and businesses can contribute to maintaining a fair and transparent business environment.
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.
