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. Cuyahoga Ohio Guarantor — Consignor Notice Required by FTC on certain Transactions is an important legal requirement enforced by the Federal Trade Commission (FTC) in Cuyahoga County, Ohio. This notice serves as a protective measure for both guarantors and consignors involved in certain types of transactions, ensuring transparency and compliance with consumer protection laws. The Cuyahoga Ohio Guarantor — Consignor Notice serves as a written agreement outlining the terms, conditions, and obligations of the guarantor and consignor. It aims to educate all parties involved about their rights and responsibilities to avoid any misunderstandings or legal disputes. This notice is mandatory in specific transactions to safeguard the interests of both parties: 1. Retail Consignments: In the retail industry, when consignors deliver goods or merchandise to a retail store for sale, a guarantor might be required to guarantee the payment or return of unsold items. In such cases, the Cuyahoga Ohio Guarantor — Consignor Notice becomes crucial to establishing the terms and conditions of this agreement. 2. Auctions: Auction consignments involve a consignor entrusting an auction house or platform to sell their items on their behalf. To ensure the consignor's rights are protected, and the guarantor's obligations are clearly defined, the FTC mandates the use of the Cuyahoga Ohio Guarantor — Consignor Notice in these transactions. 3. Art and Antique Consignments: When individuals or entities consign valuable artwork or antique items for sale or auction, it's crucial to have a clear understanding of the terms and conditions between the consignor and guarantor. The Cuyahoga Ohio Guarantor — Consignor Notice is used in such transactions to protect both parties' interests. 4. Vehicle Consignments: When a person consigns their vehicle to a dealership or consignment agency for sale, the FTC requires the use of the Cuyahoga Ohio Guarantor — Consignor Notice to specify the guarantor's obligations and consignor's rights, reducing the risk of disputes arising from the transaction. It is important to note that the Cuyahoga Ohio Guarantor — Consignor Notice is created to ensure compliance with FTC guidelines, protect consumers, and provide accountability and transparency in the specified transactions. Failure to adhere to the notice requirements can result in legal consequences and potential challenges in enforcing or defending contractual obligations in court.
Cuyahoga Ohio Guarantor — Consignor Notice Required by FTC on certain Transactions is an important legal requirement enforced by the Federal Trade Commission (FTC) in Cuyahoga County, Ohio. This notice serves as a protective measure for both guarantors and consignors involved in certain types of transactions, ensuring transparency and compliance with consumer protection laws. The Cuyahoga Ohio Guarantor — Consignor Notice serves as a written agreement outlining the terms, conditions, and obligations of the guarantor and consignor. It aims to educate all parties involved about their rights and responsibilities to avoid any misunderstandings or legal disputes. This notice is mandatory in specific transactions to safeguard the interests of both parties: 1. Retail Consignments: In the retail industry, when consignors deliver goods or merchandise to a retail store for sale, a guarantor might be required to guarantee the payment or return of unsold items. In such cases, the Cuyahoga Ohio Guarantor — Consignor Notice becomes crucial to establishing the terms and conditions of this agreement. 2. Auctions: Auction consignments involve a consignor entrusting an auction house or platform to sell their items on their behalf. To ensure the consignor's rights are protected, and the guarantor's obligations are clearly defined, the FTC mandates the use of the Cuyahoga Ohio Guarantor — Consignor Notice in these transactions. 3. Art and Antique Consignments: When individuals or entities consign valuable artwork or antique items for sale or auction, it's crucial to have a clear understanding of the terms and conditions between the consignor and guarantor. The Cuyahoga Ohio Guarantor — Consignor Notice is used in such transactions to protect both parties' interests. 4. Vehicle Consignments: When a person consigns their vehicle to a dealership or consignment agency for sale, the FTC requires the use of the Cuyahoga Ohio Guarantor — Consignor Notice to specify the guarantor's obligations and consignor's rights, reducing the risk of disputes arising from the transaction. It is important to note that the Cuyahoga Ohio Guarantor — Consignor Notice is created to ensure compliance with FTC guidelines, protect consumers, and provide accountability and transparency in the specified transactions. Failure to adhere to the notice requirements can result in legal consequences and potential challenges in enforcing or defending contractual obligations in court.
