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. Kings New York Guarantor — Consignor Notice Required by FTC on certain Transactions The Kings New York Guarantor — Consignor Notice is a legal requirement imposed by the Federal Trade Commission (FTC) on certain transactions involving guarantors and consignors. This notice serves to provide transparency and protect the rights of consumers engaging in these types of transactions. The FTC specifically mandates that Kings New York requires this notice for transactions involving guarantors or consignors in order to prevent deceptive practices and ensure fair business practices. This notice enables consumers to make informed decisions and understand their rights and responsibilities before entering into such transactions. It is important to note that there are different types of Kings New York Guarantor — Consignor Notice required by the FTC on certain transactions. These can include: 1. Guarantor Notice: This type of notice is required when a third party, known as a guarantor, guarantees the payment obligations or performance of another party involved in a transaction. The FTC requires Kings New York to provide a specific notice to the guarantor, outlining their obligations, rights, and potential liabilities. 2. Consignor Notice: In certain types of transactions, the consignor entrusts their goods or products to another party, known as the consignee, for sale or distribution. The consignor is entitled to specific rights and protection under the law. Kings New York is required by the FTC to provide a consignor notice to ensure the consignor is fully aware of their rights, responsibilities, and potential risks associated with consigning their goods. Both the Guarantor Notice and the Consignor Notice serve the purpose of protecting consumers involved in these transactions. By providing detailed information, these notices aim to prevent misunderstandings, mitigate potential disputes, and ensure compliance with FTC regulations.
Kings New York Guarantor — Consignor Notice Required by FTC on certain Transactions The Kings New York Guarantor — Consignor Notice is a legal requirement imposed by the Federal Trade Commission (FTC) on certain transactions involving guarantors and consignors. This notice serves to provide transparency and protect the rights of consumers engaging in these types of transactions. The FTC specifically mandates that Kings New York requires this notice for transactions involving guarantors or consignors in order to prevent deceptive practices and ensure fair business practices. This notice enables consumers to make informed decisions and understand their rights and responsibilities before entering into such transactions. It is important to note that there are different types of Kings New York Guarantor — Consignor Notice required by the FTC on certain transactions. These can include: 1. Guarantor Notice: This type of notice is required when a third party, known as a guarantor, guarantees the payment obligations or performance of another party involved in a transaction. The FTC requires Kings New York to provide a specific notice to the guarantor, outlining their obligations, rights, and potential liabilities. 2. Consignor Notice: In certain types of transactions, the consignor entrusts their goods or products to another party, known as the consignee, for sale or distribution. The consignor is entitled to specific rights and protection under the law. Kings New York is required by the FTC to provide a consignor notice to ensure the consignor is fully aware of their rights, responsibilities, and potential risks associated with consigning their goods. Both the Guarantor Notice and the Consignor Notice serve the purpose of protecting consumers involved in these transactions. By providing detailed information, these notices aim to prevent misunderstandings, mitigate potential disputes, and ensure compliance with FTC regulations.
