The special notice required under the Consumer Credit and Protection Act is designed to explain what aspect of a loan?

The special notice required under the Consumer Credit and Protection Act aims to clarify the liability of a co-signer in the event that the primary borrower defaults on the loan. This notice is essential as it ensures that all parties understand their responsibilities and the potential consequences of default. It serves to protect consumers by making sure they are fully aware of the risks involved, particularly regarding co-signers, who may have financial obligations and credit implications that they need to consider before agreeing to back a loan. This transparency helps to promote informed decision-making and accountability among borrowers and co-signers alike.

The other aspects of the loan, such as interest rates, fees, and repayment schedules, while important, are typically covered through different disclosures and not specifically addressed by this particular notice. Thus, the focus on co-signer liability captures a critical and often overlooked detail in loan agreements.