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. Los Angeles, California Guarantor — Consignor Notice Required by FTC on certain Transactions The Los Angeles, California Guarantor — Consignor Notice is a legal requirement imposed by the Federal Trade Commission (FTC) for specific transactions involving guarantors and consignors in the city of Los Angeles, California. This notice is designed to provide transparency and consumer protection, ensuring that individuals considering entering into agreements or transactions involving guarantors and consignors are fully informed of their rights and obligations. The FTC mandates that certain transactions necessitate the disclosure of a Guarantor — Consignor Notice in Los Angeles, California. These transactions often involve financial agreements, contracts, or arrangements where a guarantor assumes the responsibility to pay off a debt or perform an obligation on behalf of the primary borrower or party. In such cases, the consignor may be an individual, organization, or entity seeking assurance that the guarantor will fulfill their obligations. The Los Angeles, California Guarantor — Consignor Notice clearly outlines the key aspects and implications of the transaction, ensuring both the guarantor and consignor are aware of their rights, responsibilities, and potential risks involved. It typically includes information such as the identities of the guarantor and consignor, the nature of the transaction, the amount of the debt or obligation, the terms and conditions, and any potential penalties or consequences for default. Different types of Guarantor — Consignor Notices may exist in Los Angeles, California based on specific transaction circumstances. Some common variations include: 1. Loan Guarantor — Consignor Notice: This notice is required when a guarantor agrees to be responsible for the repayment of a loan in case the primary borrower defaults. It ensures that both the lender and the guarantor are aware of the terms and conditions of the loan arrangement. 2. Rental Guarantor — Consignor Notice: This notice is necessary when a guarantor agrees to guarantee the payment of rent or lease-related obligations for a tenant. It protects both the landlord and the guarantor by explicitly clarifying the responsibilities and obligations of each party. 3. Sales Guarantor — Consignor Notice: This notice is applicable in cases where a guarantor guarantees the payment or performance of a sale transaction on behalf of the buyer or vendor. It ensures transparency and protects the interests of all parties involved. Compliance with the Los Angeles, California Guarantor — Consignor Notice requirements is crucial to avoid legal complications and disputes. Failure to provide the necessary disclosures in a timely manner may result in legal consequences, financial liabilities, and potential harm to the parties involved. Therefore, it is essential for individuals, businesses, and organizations engaged in transactions requiring guarantors and consignors in Los Angeles, California to familiarize themselves with the FTC regulations and seek professional legal advice to ensure compliance and protect their rights and interests.
Los Angeles, California Guarantor — Consignor Notice Required by FTC on certain Transactions The Los Angeles, California Guarantor — Consignor Notice is a legal requirement imposed by the Federal Trade Commission (FTC) for specific transactions involving guarantors and consignors in the city of Los Angeles, California. This notice is designed to provide transparency and consumer protection, ensuring that individuals considering entering into agreements or transactions involving guarantors and consignors are fully informed of their rights and obligations. The FTC mandates that certain transactions necessitate the disclosure of a Guarantor — Consignor Notice in Los Angeles, California. These transactions often involve financial agreements, contracts, or arrangements where a guarantor assumes the responsibility to pay off a debt or perform an obligation on behalf of the primary borrower or party. In such cases, the consignor may be an individual, organization, or entity seeking assurance that the guarantor will fulfill their obligations. The Los Angeles, California Guarantor — Consignor Notice clearly outlines the key aspects and implications of the transaction, ensuring both the guarantor and consignor are aware of their rights, responsibilities, and potential risks involved. It typically includes information such as the identities of the guarantor and consignor, the nature of the transaction, the amount of the debt or obligation, the terms and conditions, and any potential penalties or consequences for default. Different types of Guarantor — Consignor Notices may exist in Los Angeles, California based on specific transaction circumstances. Some common variations include: 1. Loan Guarantor — Consignor Notice: This notice is required when a guarantor agrees to be responsible for the repayment of a loan in case the primary borrower defaults. It ensures that both the lender and the guarantor are aware of the terms and conditions of the loan arrangement. 2. Rental Guarantor — Consignor Notice: This notice is necessary when a guarantor agrees to guarantee the payment of rent or lease-related obligations for a tenant. It protects both the landlord and the guarantor by explicitly clarifying the responsibilities and obligations of each party. 3. Sales Guarantor — Consignor Notice: This notice is applicable in cases where a guarantor guarantees the payment or performance of a sale transaction on behalf of the buyer or vendor. It ensures transparency and protects the interests of all parties involved. Compliance with the Los Angeles, California Guarantor — Consignor Notice requirements is crucial to avoid legal complications and disputes. Failure to provide the necessary disclosures in a timely manner may result in legal consequences, financial liabilities, and potential harm to the parties involved. Therefore, it is essential for individuals, businesses, and organizations engaged in transactions requiring guarantors and consignors in Los Angeles, California to familiarize themselves with the FTC regulations and seek professional legal advice to ensure compliance and protect their rights and interests.
