WASHINGTON (CN) – Consumer lessors and creditors who make transactions, such as automobile leases, worth up to $50,000 must comply with the Consumer Leasing Act, according to regulations proposed by the Federal Reserve.
This rule would comply with provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Previously, only leases of up to $25,000 were covered by the Consumer Leasing Act, which was enacted in 1976 as an amendment to the Truth in Lending Act. It requires lessors to disclose a description of the property to be leased, the amount due at the signing of the lease or delivery of the property, the payment schedule and total amount of all payments, charges, penalties for early termination, maintenance responsibilities and other costs and terms of personal property leases.
The $50,000 limit is calculated on everything the consumer is required to pay under the lease, including taxes.
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