---
kind: "section"
citation: "16 C.F.R. § 444.3"
title: "16"
number: "444.3"
heading: "Unfair or deceptive cosigner practices."
url: "https://uscodex.org/cfr/16/444.3"
---

# §444.3. Unfair or deceptive cosigner practices.

- (a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is:
  - (1) A deceptive act or practice within the meaning of [section 5](/cfr/16/5.md) of that Act for a lender or retail installment seller, directly or indirectly, to misrepresent the nature or extent of cosigner liability to any person.
  - (2) An unfair act or practice within the meaning of [section 5](/cfr/16/5.md) of that Act for a lender or retail installment seller, directly or indirectly, to obligate a cosigner unless the cosigner is informed prior to becoming obligated, which in the case of open end credit shall mean prior to the time that the agreement creating the cosigner's liability for future charges is executed, of the nature of his or her liability as cosigner.
- (b) Any lender or retail installment seller who complies with the preventive requirements in [paragraph (c)](#c) of this section does not violate [paragraph (a)](#a) of this section.
- (c) To prevent these unfair or deceptive acts or practices, a disclosure, consisting of a separate document that shall contain the following statement and no other, shall be given to the cosigner prior to becoming obligated, which in the case of open end credit shall mean prior to the time that the agreement creating the cosigner's liability for future charges is executed:

## Notes

### Authority

Authority: Sec. 18(a), 88 Stat. 2193, as amended 93 Stat. 95 (15 U.S.C. 57a); 80 Stat. 383, as amended, 81 Stat. 54 (5 U.S.C. 552).

### Source

Source: 49 FR 7789, Mar. 1, 1984, unless otherwise noted.