Virgin Islands Guarantor - Consignor Notice Required by FTC on certain Transactions

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The Rule applies to consumer credit contracts offered by finance companies, retailers (such as auto dealers and furniture and department stores), and credit unions for any personal purpose except to buy real estate.


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.

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The FTC has issued a Notice that it has determined that certain acts or practices used in the advertising or promotion of business opportunities are deceptive or unfair, and violate the FTC Act.

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Section 5(a) of the FTC Act, 15 U.S.C. Sec. 45(a), prohibits, inter alia, unfair methods of competition. Unfair methods of competition include any conduct that would violate the Sherman Antitrust Act or the Clayton Act.

The FTC can regulate trade by outlining deceptive and unfair practices in the marketplace. It also enforces antitrust and consumer protection laws.

The History of Section 13(b) In 1973, Congress amended the Federal Trade Commission Act of 1914 (FTC Act) by adding Section 13(b), which granted the agency the authority to seek injunctions in federal district court to halt unfair and deceptive practices.

The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.

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What is this claim? What can I do if I don't receive my money Guarantee Claim How to file a claim or claim guarantor is not the money owed How to dispute a guarantee claim Financial Assistance. Guarantee claim FAQs What qualifies as a valid guarantee claim? Guarantees for health care and social services are not always written down or mentioned in the health care provider contract. For more information, see Guarantee Claim. What amount of services do I need to submit? How much do I need to send in? How long does it take to get a written answer to my guarantee claim? Claim form FAQs What do I need to include on my claim form to receive a copy of my health care provider's form? The following information must be included exactly as it appears on the health care provider's form: The claimant's full address and telephone number.

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Virgin Islands Guarantor - Consignor Notice Required by FTC on certain Transactions