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. San Diego California Guarantor — Consignor Notice Required by FTC on certain Transactions When engaging in certain transactions in San Diego, California, it is important to be aware of the Guarantor — Consignor Notice requirements set forth by the Federal Trade Commission (FTC). These notices ensure transparency and protect the rights of both parties involved in a transaction where a guarantor or consignor is present. The FTC mandates that in specific transactions, such as the sale of high-value items or the provision of financial guarantees, a Guarantor — Consignor Notice must be provided to the consumer. This notice serves as a written disclosure, informing the consumer about the guarantor's role and responsibilities, as well as their rights in the transaction. The Guarantor — Consignor Notice provides essential details that include: 1. Guarantor's or Consignor's Identification: The notice must clearly identify the guarantor or consignor involved in the transaction. This includes their name, address, contact information, and any relevant business or registration details. 2. Guarantor's Responsibilities: The notice outlines the specific obligations and responsibilities of the guarantor or consignor. It may include commitments related to payment guarantees, the handling and storage of goods, or any other agreed-upon terms. 3. Consumer Protections: The Guarantor — Consignor Notice explains the consumer's rights and protections in the transaction, ensuring they have a clear understanding of their position and recourse if any issues arise. This includes information about warranties, returns, refunds, and dispute resolution mechanisms. 4. Terms and Conditions: The notice includes the terms and conditions of the transaction, such as payment deadlines, interest rates, penalties, and other important contractual details. These terms are crucial for both parties to have a comprehensive understanding of their obligations. Different Types of San Diego California Guarantor — Consignor Notice Required by FTC on Certain Transactions: 1. High-value Item Sales: This type of guarantor — consignor notice is applicable in transactions involving the sale of valuable items such as jewelry, art, luxury goods, or real estate. 2. Financial Guarantees: When a guarantor provides financial guarantees to secure a transaction, such as obtaining a loan or financing a purchase, a specific notice is required. This notice should outline the guarantor's obligations and any associated risks for the consumer. 3. Consignment Agreements: In consignment arrangements where a consignor entrusts their goods to another party for sale, a Guarantor — Consignor Notice must specify the terms and conditions of the consignment, as well as the roles and responsibilities of all parties involved. By adhering to the FTC's guidelines and providing the required Guarantor — Consignor Notice, businesses and individuals in San Diego, California, ensure transparency, fairness, and protection for both themselves and their consumers. This fosters trust, minimizes disputes, and promotes a healthy marketplace environment.
San Diego California Guarantor — Consignor Notice Required by FTC on certain Transactions When engaging in certain transactions in San Diego, California, it is important to be aware of the Guarantor — Consignor Notice requirements set forth by the Federal Trade Commission (FTC). These notices ensure transparency and protect the rights of both parties involved in a transaction where a guarantor or consignor is present. The FTC mandates that in specific transactions, such as the sale of high-value items or the provision of financial guarantees, a Guarantor — Consignor Notice must be provided to the consumer. This notice serves as a written disclosure, informing the consumer about the guarantor's role and responsibilities, as well as their rights in the transaction. The Guarantor — Consignor Notice provides essential details that include: 1. Guarantor's or Consignor's Identification: The notice must clearly identify the guarantor or consignor involved in the transaction. This includes their name, address, contact information, and any relevant business or registration details. 2. Guarantor's Responsibilities: The notice outlines the specific obligations and responsibilities of the guarantor or consignor. It may include commitments related to payment guarantees, the handling and storage of goods, or any other agreed-upon terms. 3. Consumer Protections: The Guarantor — Consignor Notice explains the consumer's rights and protections in the transaction, ensuring they have a clear understanding of their position and recourse if any issues arise. This includes information about warranties, returns, refunds, and dispute resolution mechanisms. 4. Terms and Conditions: The notice includes the terms and conditions of the transaction, such as payment deadlines, interest rates, penalties, and other important contractual details. These terms are crucial for both parties to have a comprehensive understanding of their obligations. Different Types of San Diego California Guarantor — Consignor Notice Required by FTC on Certain Transactions: 1. High-value Item Sales: This type of guarantor — consignor notice is applicable in transactions involving the sale of valuable items such as jewelry, art, luxury goods, or real estate. 2. Financial Guarantees: When a guarantor provides financial guarantees to secure a transaction, such as obtaining a loan or financing a purchase, a specific notice is required. This notice should outline the guarantor's obligations and any associated risks for the consumer. 3. Consignment Agreements: In consignment arrangements where a consignor entrusts their goods to another party for sale, a Guarantor — Consignor Notice must specify the terms and conditions of the consignment, as well as the roles and responsibilities of all parties involved. By adhering to the FTC's guidelines and providing the required Guarantor — Consignor Notice, businesses and individuals in San Diego, California, ensure transparency, fairness, and protection for both themselves and their consumers. This fosters trust, minimizes disputes, and promotes a healthy marketplace environment.
