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Truth in Lending: 54(a)(1) General Rule.

1. Eligibility for grace period. Section 1026.54 prohibits the imposition of finance charges as a result of the loss of a grace period in certain specified circumstances. Section 1026.54 does not require the card issuer to provide a grace period.

Truth in Lending: Introduction

15 U.S.C. § 1667, Pub. L. No. 94-240 (Mar. 23, 1976), as amended through Pub. L. No. 111-203, 124 Stat. 1376 (July 21, 2010)

Truth in Lending: 15 U.S.C. § 1667a. Consumer lease disclosures

Each lessor shall give a lessee prior to the consummation of the lease a dated written statement on which the lessor and lessee are identified setting out accurately and in a clear and conspicuous manner the following information with respect to that lease, as applicable:

(1) A brief description or identification of the leased property;

(2) The amount of any payment by the lessee required at the inception of the lease;

Truth in Lending: 15 U.S.C. § 1667c. Consumer lease advertising; radio advertisements; liability of advertisers

(a) In general

If an advertisement for a consumer lease includes a statement of the amount of any payment or a statement that any or no initial payment is required, the advertisement shall clearly and conspicuously state, as applicable—

(1) the transaction advertised is a lease;

(2) the total amount of any initial payments required on or before consummation of the lease or delivery of the property, whichever is later;

Truth in Lending: 15 U.S.C. § 1667d. Civil liability of lessors

(a) Grounds for maintenance of action

Any lessor who fails to comply with any requirement imposed under section 1667a or 1667b of this title with respect to any person is liable to such person as provided in section 1640 of this title.

(b) Additional grounds for maintenance of action; “creditor” defined

Truth in Lending: 15 U.S.C. § 1667e. Applicability of State laws; exemptions by Bureau from leasing requirements

(a) This part does not annul, alter, or affect, or exempt any person subject to the provisions of this part from complying with, the laws of any State with respect to consumer leases, except to the extent that those laws are inconsistent with any provision of this part, and then only to the extent of the inconsistency. The Bureau is authorized to determine whether such inconsistencies exist.

Truth in Lending: 15 U.S.C. § 1667f. Regulations.

(a) Regulations authorized.—

(1) In general

The Bureau shall prescribe regulations to update and clarify the requirements and definitions applicable to lease disclosures and contracts, and any other issues specifically related to consumer leasing, to the extent that the Bureau determines such action to be necessary—

(A) to carry out this part;

Truth in Lending: Correlation Table Between FRB and CFPB Versions

The Consumer Financial Protection Bureau version of Regulation M, 12 C.F.R. pt. 1013, as amended through 72 Fed. Reg. 63,461 (Nov. 1, 2012). The table below show the corresponding Federal Reserve Board numbers. The online companion material to this treatise contains other Regulation M material.

CFPB numbering FRB numbering

Sec.

Truth in Lending: Section 1013.1 Authority, scope, purpose, and enforcement. [213.1]

(a) Authority. The regulation in this part, known as Regulation M, is issued by the Bureau of Consumer Financial Protection to implement the consumer leasing provisions of the Truth in Lending Act, which is Title I of the Consumer Credit Protection Act, as amended (15 U.S.C. 1601 et seq.). Information collection requirements contained in this part have been approved by the Office of Management and Budget under the provisions of 44 U.S.C. 3501 et seq. and have been assigned OMB control number 3170–0006.

Truth in Lending: Section 1013.2 Definitions. [213.2]

For the purposes of this part the following definitions apply:

(a) Act means the Truth in Lending Act (15 U.S.C. 1601 et seq.) and the Consumer Leasing Act is Chapter 5 of the Truth in Lending Act.

(b) Advertisement means a commercial message in any medium that directly or indirectly promotes a consumer lease transaction.

(c) Bureau refers to the Bureau of Consumer Financial Protection.

Truth in Lending: Section 1013.3 General disclosure requirements. [213.3]

(a) General requirements. A lessor shall make the disclosures required by § 1013.4, as applicable. The disclosures shall be made clearly and conspicuously in writing in a form the consumer may keep, in accordance with this section. The disclosures required by this part may be provided to the lessee in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.).

Truth in Lending: Section 1013.6 [Reserved] [213.6]

[66 Fed. Reg. 17,338 (Mar. 30, 2001) COMPLIANCE DATE NOTE: At 66 Fed. Reg. 41,440 (Aug. 8, 2001) the Oct. 1, 2001, mandatory compliance date for the interim final rules published at 66 Fed. Reg. 17,311 (Mar. 30, 2001) was lifted; 72 Fed. Reg. 63,461 (Nov. 9, 2007); 76 Fed. Reg. 44,242 (July 22, 2011); 76 Fed. Reg. 78,502 (Dec. 19, 2011)]

Truth in Lending: Section 1013.7 Advertising. [213.7]

(a) General rule. An advertisement for a consumer lease may state that a specific lease of property at specific amounts or terms is available only if the lessor usually and customarily leases or will lease the property at those amounts or terms.

(b) Clear and conspicuous standard. Disclosures required by this section shall be made clearly and conspicuously.

Truth in Lending: Section 1013.8 Record retention. [213.8]

A lessor shall retain evidence of compliance with the requirements imposed by this part, other than the advertising requirements under § 1013.7, for a period of not less than two years after the date the disclosures are required to be made or an action is required to be taken.

[76 Fed. Reg. 44,242 (July 22, 2011); 76 Fed. Reg. 78,502 (Dec. 19, 2011)]

Truth in Lending: Section 1013.9 Relation to state laws. [213.9]

(a) Inconsistent state law. A state law that is inconsistent with the requirements of the Act and this part is preempted to the extent of the inconsistency. If a lessor cannot comply with a state law without violating a provision of this part, the state law is inconsistent within the meaning of section 186(a) of the Act and is preempted, unless the state law gives greater protection and benefit to the consumer.

Truth in Lending: Appendix C to Part 1013 [Part 213] Issuance of Official Interpretations

Interpretations of this part issued by officials of the Bureau provide the formal protection afforded under section 130(f) of the Act. Except in unusual circumstances, interpretations will not be issued separately but will be incorporated in an official commentary to Regulation M (Supplement I of this part), which will be amended periodically. No official interpretations will be issued approving a lessor’s forms, statements, or calculation tools or methods.

[76 Fed. Reg. 44,242 (July 22, 2011); 76 Fed. Reg. 78,502 (Dec. 19, 2011)]