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. Oakland, Michigan Guarantor — Consignor Notice Required by FTC on Certain Transactions: Explained In Oakland, Michigan, the Federal Trade Commission (FTC) mandates a Guarantor — Consignor Notice for specific transactions to ensure consumer protection and transparency. This notice requirement applies to various types of transactions, including: 1. Auto Financing Guarantor — Consignor Notice: When a person acts as a guarantor or consignor for someone seeking auto financing in Oakland, Michigan, the FTC requires a notice to be provided. This notice informs the guarantor or consignor about their legal obligations and potential liabilities if the primary borrower fails to meet their financial responsibilities. 2. Rental Guarantor — Consignor Notice: In rental agreements within the Oakland, Michigan jurisdiction, where a guarantor or consignor is involved, the FTC necessitates a separate notice. This notice alerts the guarantor or consignor regarding their financial obligations in case the tenant or lessee defaults on rent payments, property damages, or other lease terms. 3. Guarantor — Consignor Notice for Personal Loans: When a third party acts as a guarantor or consignor for an individual seeking a personal loan in Oakland, Michigan, the FTC requires lenders to provide this notice. The notice outlines the guarantor's or consignor's responsibilities if the borrower defaults on the loan amount, interest payments, or other loan terms. The Oakland, Michigan Guarantor — Consignor Notice, mandated by the FTC, is designed to inform these individuals of their legal obligations and potential financial risks involved. It ensures that all parties involved understand the terms and consequences, providing them with the necessary information for informed decision-making. It's worth noting that these requirements may not be limited to the mentioned transactions. Other financial transactions involving guarantors or consignors might also require specific notice in compliance with FTC guidelines in Oakland, Michigan. Therefore, it is essential to consult the relevant legal authorities or seek professional advice to determine the scope of the Guarantor — Consignor Notice requirement for a particular transaction within the Oakland, Michigan jurisdiction. Remember, compliance with the FTC's Guarantor — Consignor Notice requirement in Oakland, Michigan is crucial to protect the rights and interests of all parties involved in financial transactions and maintain a fair and transparent business environment.
Oakland, Michigan Guarantor — Consignor Notice Required by FTC on Certain Transactions: Explained In Oakland, Michigan, the Federal Trade Commission (FTC) mandates a Guarantor — Consignor Notice for specific transactions to ensure consumer protection and transparency. This notice requirement applies to various types of transactions, including: 1. Auto Financing Guarantor — Consignor Notice: When a person acts as a guarantor or consignor for someone seeking auto financing in Oakland, Michigan, the FTC requires a notice to be provided. This notice informs the guarantor or consignor about their legal obligations and potential liabilities if the primary borrower fails to meet their financial responsibilities. 2. Rental Guarantor — Consignor Notice: In rental agreements within the Oakland, Michigan jurisdiction, where a guarantor or consignor is involved, the FTC necessitates a separate notice. This notice alerts the guarantor or consignor regarding their financial obligations in case the tenant or lessee defaults on rent payments, property damages, or other lease terms. 3. Guarantor — Consignor Notice for Personal Loans: When a third party acts as a guarantor or consignor for an individual seeking a personal loan in Oakland, Michigan, the FTC requires lenders to provide this notice. The notice outlines the guarantor's or consignor's responsibilities if the borrower defaults on the loan amount, interest payments, or other loan terms. The Oakland, Michigan Guarantor — Consignor Notice, mandated by the FTC, is designed to inform these individuals of their legal obligations and potential financial risks involved. It ensures that all parties involved understand the terms and consequences, providing them with the necessary information for informed decision-making. It's worth noting that these requirements may not be limited to the mentioned transactions. Other financial transactions involving guarantors or consignors might also require specific notice in compliance with FTC guidelines in Oakland, Michigan. Therefore, it is essential to consult the relevant legal authorities or seek professional advice to determine the scope of the Guarantor — Consignor Notice requirement for a particular transaction within the Oakland, Michigan jurisdiction. Remember, compliance with the FTC's Guarantor — Consignor Notice requirement in Oakland, Michigan is crucial to protect the rights and interests of all parties involved in financial transactions and maintain a fair and transparent business environment.
