Guarantees of loans from financial institutions by a family member of the borrower can be problematic, especially if the guarantor is a vulnerable elderly person. The Commission recommends consumer protection measures to protect guarantors, including enhanced mandatory disclosure by financial institutions of the legal effects of guarantees.
Publications by Key Term: guarantor
Secured Consumer Credit Transactions, Summary of Recommendations: Tentative Proposals for a Consumer Credit Act, Part III May 1981
These proposals are meant to act as a supplement to The Personal Property Security Act that was enacted in 1980. They are designed to enhance consumer protection in credit transactions.