What is the purpose of the special notice under the Consumer Credit and Protection Act?

The special notice under the Consumer Credit and Protection Act serves the important purpose of disclosing a co-signor's liability. This is critical for ensuring that individuals who are co-signing a loan fully understand their obligations. A co-signor agrees to take on responsibility for the debt if the primary borrower defaults, which can lead to significant financial consequences for the co-signor.

Providing this disclosure helps to protect consumers by ensuring they are fully aware of their potential liability associated with being a co-signor. This transparency is essential in helping co-signors make informed decisions about entering into such agreements, where they might not be the primary borrower but could still face financial repercussions.

The other options focus on different aspects of consumer finance, such as interest rates, late payment fees, and credit reporting, which are important, but they do not address the specific obligations and risks that co-signors face. By highlighting the unique responsibility of co-signors, the special notice plays a key role in consumer protection and awareness.