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. Houston Texas Guarantor — Consignor Notice Required by FTC on certain Transactions The Houston Texas Guarantor — Consignor Notice refers to a disclosure requirement imposed by the Federal Trade Commission (FTC) on specific transactions within the Houston, Texas area. This notice is designed to protect both guarantors and consignors involved in various agreements and transactions. This FTC requirement mandates that certain transactions involving a guarantor and consignor in Houston, Texas must include a distinct notice to ensure transparency and fair practices. The notice typically provides essential information regarding the responsibilities, rights, and potential risks associated with such transactions. There are various types of Houston Texas Guarantor — Consignor Notice as per the FTC guidelines: 1. Guarantor Notice: This type of notice is placed when an individual, known as the guarantor, agrees to be responsible for a debt or obligation in case the primary party fails to fulfill their duties. The notice discloses the guarantor's potential liabilities, obligations, and the potential consequences of non-payment. 2. Consignor Notice: This notice is required when one party, known as the consignor, entrusts goods or merchandise to another party, known as the consignee, who will sell or distribute the goods on behalf of the consignor. The notice outlines the consignor's rights, responsibilities, and potential risks associated with the consignment process. 3. Guarantor-Consignment Notice: In some cases, a transaction may involve elements of both guarantee and consignment. This type of notice provides combined information regarding the guarantor's responsibilities and liabilities as well as the consignor's rights and potential risks. The purpose of these Houston Texas Guarantor — Consignor Notices is to ensure that all parties involved in such transactions are fully aware of their roles, rights, and obligations. Additionally, it aims to prevent unfair practices, miscommunication, or misunderstanding that may lead to financial loss or disputes. Compliance with the FTC's requirement is essential for businesses and individuals engaged in transactions involving guarantors and consignors in Houston, Texas. It is crucial to include a clear and comprehensive notice, written in easily understandable language, to meet the FTC guidelines and maintain legal compliance. By providing the appropriate Houston Texas Guarantor — Consignor Notice, businesses and individuals can foster a transparent and trustworthy environment for all parties involved, minimizing the potential risks and ensuring a fair transaction process.
Houston Texas Guarantor — Consignor Notice Required by FTC on certain Transactions The Houston Texas Guarantor — Consignor Notice refers to a disclosure requirement imposed by the Federal Trade Commission (FTC) on specific transactions within the Houston, Texas area. This notice is designed to protect both guarantors and consignors involved in various agreements and transactions. This FTC requirement mandates that certain transactions involving a guarantor and consignor in Houston, Texas must include a distinct notice to ensure transparency and fair practices. The notice typically provides essential information regarding the responsibilities, rights, and potential risks associated with such transactions. There are various types of Houston Texas Guarantor — Consignor Notice as per the FTC guidelines: 1. Guarantor Notice: This type of notice is placed when an individual, known as the guarantor, agrees to be responsible for a debt or obligation in case the primary party fails to fulfill their duties. The notice discloses the guarantor's potential liabilities, obligations, and the potential consequences of non-payment. 2. Consignor Notice: This notice is required when one party, known as the consignor, entrusts goods or merchandise to another party, known as the consignee, who will sell or distribute the goods on behalf of the consignor. The notice outlines the consignor's rights, responsibilities, and potential risks associated with the consignment process. 3. Guarantor-Consignment Notice: In some cases, a transaction may involve elements of both guarantee and consignment. This type of notice provides combined information regarding the guarantor's responsibilities and liabilities as well as the consignor's rights and potential risks. The purpose of these Houston Texas Guarantor — Consignor Notices is to ensure that all parties involved in such transactions are fully aware of their roles, rights, and obligations. Additionally, it aims to prevent unfair practices, miscommunication, or misunderstanding that may lead to financial loss or disputes. Compliance with the FTC's requirement is essential for businesses and individuals engaged in transactions involving guarantors and consignors in Houston, Texas. It is crucial to include a clear and comprehensive notice, written in easily understandable language, to meet the FTC guidelines and maintain legal compliance. By providing the appropriate Houston Texas Guarantor — Consignor Notice, businesses and individuals can foster a transparent and trustworthy environment for all parties involved, minimizing the potential risks and ensuring a fair transaction process.
