Truth in Lending: Amendment History
[75 Fed. Reg. 7848 (Feb. 22, 2010); 76 Fed. Reg. 23,028, 23,029 (Apr. 25, 2011); 76 Fed. Reg. 79,772 (Dec. 22, 2011)]
[75 Fed. Reg. 7848 (Feb. 22, 2010); 76 Fed. Reg. 23,028, 23,029 (Apr. 25, 2011); 76 Fed. Reg. 79,772 (Dec. 22, 2011)]
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.
This treatise’s digital version at “Primary Sources” includes other material concerning the Consumer Leasing Act and its history.
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)
For purposes of this part—
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;
(a) Estimated residual value of property as basis; presumptions; action by lessor for excess liability; mutually agreeable final adjustment
(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;
(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
(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.
(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;
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 | |
|---|---|---|
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Sec. |
(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.
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.
(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.).
For any consumer lease subject to this part, the lessor shall disclose the following information, as applicable:
(a) Description of property. A brief description of the leased property sufficient to identify the property to the lessee and lessor.
(a) Renegotiation. A renegotiation occurs when a consumer lease subject to this part is satisfied and replaced by a new lease undertaken by the same consumer. A renegotiation requires new disclosures, except as provided in paragraph (d) of this section.
[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)]
(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.
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)]
(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.
A-1 Model Open-End or Finance Vehicle Lease Disclosures
A-1 Model Open-End or Finance Vehicle Lease Disclosures
[76 Fed. Reg. 44,242 (July 22, 2011); 76 Fed. Reg. 78,502 (Dec. 19, 2011)]
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)]