Consumer Leasing Disclosures Quiz

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Questions and Answers

What must be included in the lease according to the Consumer Leasing Regulation?

The lessee's credit score

The lessor's personal information

The lessor's financial history

A detailed description of the property,the amount due at lease signing or delivery, the payment schedule, and the total amount of periodic payments. (correct)

How long must records and evidence of compliance be retained?

No less than two years (correct)

No less than three years

Six months

One year

What type of advertisements must comply with page reference requirements according to the Consumer Leasing Regulation?

Television advertisements

Radio advertisements

Catalog/multiple page advertisements (correct)

Online banner advertisements

What must be disclosed regarding the lessee's liabilities at the end of the lease term?

Limitations on the lessee's liabilities, and penalties or other charges for delinquency, default, or late payments. Signup and view all the answers

What is required if there are multiple lessees according to the Consumer Leasing Regulation?

Disclosures must be provided to any lessee primarily liable. Signup and view all the answers

What should be included in an institution's advertisements according to the Consumer Leasing Regulation?

Terms that are usually and customarily available, with clear and conspicuous disclosures. Signup and view all the answers

What is required if an advertisement is accessed electronically according to the Consumer Leasing Regulation?

Disclosures must comply with the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and be provided to the consumer in electronic form. Signup and view all the answers

What is required in terms of estimates according to the Consumer Leasing Regulation?

All estimates must be clearly identified and reasonable. Signup and view all the answers

What is required regarding penalties or other charges for delinquency, default, or late payments according to the Consumer Leasing Regulation?

Lessor must disclose penalties or other charges for delinquency, default, or late payments. Signup and view all the answers

What is one of the examination procedures related to lessee liability?

Reviewing the lease estimates and calculations to ensure reasonable terms for the lessee. Signup and view all the answers

What must the lessor disclose regarding early termination of the lease?

Conditions under which the lease may be terminated early and the amount of any early termination charges Signup and view all the answers

In what form should disclosures be provided to the lessee?

Clear, conspicuous, and in writing for the lessee to keep Signup and view all the answers

For electronically provided disclosures, what must be ensured according to the E-Sign Act?

Compliance with consumer consent and other applicable provisions of the E-Sign Act Signup and view all the answers

What should be reviewed to ensure adequate controls and procedures for compliance?

Institution's procedures for providing disclosures Signup and view all the answers

What must financial institutions ensure regarding leasing terms in advertising?

Accurate disclosures in all advertising Signup and view all the answers

What should be reviewed to ensure that there are no unreasonable balloon payments expected from the lessee?

Lease estimates and calculations Signup and view all the answers

What should be disclosed about early termination charges?

Amount and method of determining early termination charges Signup and view all the answers

What is required for electronically provided disclosures according to the E-Sign Act?

Compliance with consumer consent and other applicable provisions of the E-Sign Act Signup and view all the answers

What is necessary regarding wear and use at the end of a lease term?

Disclosure of wear and use conditions at lease end Signup and view all the answers

What should be reviewed to ensure clear and conspicuous disclosures provided by the institution?

Disclosures provided by the institution in writing for lessees to keep Signup and view all the answers

What is necessary regarding early termination charges?

Reasonable early termination charges must be assessed. Signup and view all the answers

Study Notes

Consumer Leasing Regulation Compliance Checklist

The Consumer Leasing Regulation requires disclosures to be made prior to lease consummation, in clear and conspicuous writing that the consumer may keep.
Disclosures must comply with the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and be provided to the consumer in electronic form if the advertisement is accessed electronically.
Information required by specific sections of the regulation must be segregated and in a form similar to the model in Appendix A.
If there are multiple lessees, disclosures must be provided to any lessee primarily liable, and any additional information provided must not mislead or confuse the lessee.
All estimates must be clearly identified and reasonable.
The lease must include a description of the property, the amount due at lease signing or delivery, the payment schedule, and the total amount of periodic payments.
The lessor must disclose limitations on the lessee's liabilities at the end of the lease term, and penalties or other charges for delinquency, default, or late payments.
Advertising policies and procedures used by the institution must have adequate controls and procedures to ensure compliance with the regulation.
The E-Sign Act amendments require mandatory compliance by October 1, 2008.
The institution's advertisements must advertise terms that are usually and customarily available, with clear and conspicuous disclosures.
Catalog/multiple page advertisements must comply with page reference requirements, and triggering terms must contain additional required information.
Records and evidence of compliance must be retained for a period of no less than two years.

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Description

Test your knowledge on consumer leasing disclosures and regulations with this quiz. From accurate advertising disclosures to lessee liability, this quiz covers key examination procedures and general disclosure requirements outlined in §1013.5.