Podcast
Questions and Answers
What is the Consumer Leasing Act (CLA) designed to ensure?
What is the Consumer Leasing Act (CLA) designed to ensure?
- Exemption of consumer leases from any regulations
- Meaningful and accurate disclosure of lease terms to consumers (correct)
- Facilitation of lease agreements without any limitations
- Protection of lessors' interests
Which Act contains provisions that govern consumer leases?
Which Act contains provisions that govern consumer leases?
- Electronic Signatures in Global and National Commerce Act (E-Sign Act)
- Regulation Z
- Regulation M
- Truth in Lending Act (correct)
What is the purpose of the Electronic Signatures in Global and National Commerce Act (E-Sign Act)?
What is the purpose of the Electronic Signatures in Global and National Commerce Act (E-Sign Act)?
- To regulate consumer leasing practices
- To facilitate electronic transactions (correct)
- To oversee truth in lending practices
- To implement regulations for the Consumer Leasing Act
What does the Consumer Leasing Act (CLA) limit?
What does the Consumer Leasing Act (CLA) limit?
What is a lessee in a leasing contract?
What is a lessee in a leasing contract?
What is Regulation Z associated with?
What is Regulation Z associated with?
What is the time limit for bringing actions alleging failure to disclose required information or comply with the Consumer Leasing Act?
What is the time limit for bringing actions alleging failure to disclose required information or comply with the Consumer Leasing Act?
How long are lessors required to maintain evidence of compliance with Regulation M?
How long are lessors required to maintain evidence of compliance with Regulation M?
What is one of the examination objectives related to Consumer Leasing Act compliance?
What is one of the examination objectives related to Consumer Leasing Act compliance?
When must meaningful and accurate disclosures of lease terms be given to lessees?
When must meaningful and accurate disclosures of lease terms be given to lessees?
What is the time limit for maintaining evidence of compliance with Regulation M, excluding advertising requirements under Section 7?
What is the time limit for maintaining evidence of compliance with Regulation M, excluding advertising requirements under Section 7?
What must institutions clearly indicate and correctly enforce for lessees?
What must institutions clearly indicate and correctly enforce for lessees?
What is one objective related to Consumer Leasing Act compliance examinations?
What is one objective related to Consumer Leasing Act compliance examinations?
When must evidence of compliance with Regulation M, excluding advertising requirements under Section 7, be maintained by lessors?
When must evidence of compliance with Regulation M, excluding advertising requirements under Section 7, be maintained by lessors?
What do Consumer Leasing Act compliance examinations aim to determine about limits of liability?
What do Consumer Leasing Act compliance examinations aim to determine about limits of liability?
What is the total contractual cost limit for a consumer lease effective January 1, 2022?
What is the total contractual cost limit for a consumer lease effective January 1, 2022?
What is the key difference between closed-end and open-end consumer leases?
What is the key difference between closed-end and open-end consumer leases?
What does the realized value refer to in a consumer lease?
What does the realized value refer to in a consumer lease?
What is the gross capitalized cost in a consumer lease?
What is the gross capitalized cost in a consumer lease?
What does an open-end lease base the amount owed at the end of the term on?
What does an open-end lease base the amount owed at the end of the term on?
What amendment requires annual adjustments of threshold by Consumer Price Index increase?
What amendment requires annual adjustments of threshold by Consumer Price Index increase?
What entities are involved in carrying out consumer leasing according to trends mentioned in the text?
What entities are involved in carrying out consumer leasing according to trends mentioned in the text?
What is the 'Capitalized Cost Reduction' in a lease?
What is the 'Capitalized Cost Reduction' in a lease?
Under what conditions can general disclosures required by Part 1013 be provided to the lessee?
Under what conditions can general disclosures required by Part 1013 be provided to the lessee?
When must dated disclosures be given to the consumer?
When must dated disclosures be given to the consumer?
In case of multiple lessors, who can make the required disclosures?
In case of multiple lessors, who can make the required disclosures?
What are advertisements for consumer leases required to comply with?
What are advertisements for consumer leases required to comply with?
What restrictions apply to the use of percentage rates in lease advertisements?
What restrictions apply to the use of percentage rates in lease advertisements?
Study Notes
Consumer Leasing Regulations Summary
- Consumers can request a paper copy of an electronic record after giving consent to receive information electronically, and any associated fees.
- "Capitalized Cost Reduction" refers to the total amount that reduces the gross capitalized cost in a lease.
- General disclosure requirements mandate lessors to provide accurate, clear, and conspicuous leasing cost information and disclosures.
- General disclosures required by Part 1013 can be provided to the lessee in electronic form, subject to consumer consent and other applicable provisions.
- If an institution changes hardware or software requirements, it must notify the consumer and allow them to withdraw consent without charge.
- Dated disclosures must be given to the consumer before signing the lease, containing all required information.
- New disclosures must be provided when a consumer renegotiates or extends a lease, with certain exceptions.
- In the case of multiple lessors, one lessor can make the required disclosures, and disclosures should be given to any lessee primarily liable.
- Advertisements for consumer leases must comply with specific disclosure requirements and accurately represent the lease terms.
- If an advertisement includes "trigger terms," it must also state specific information about the lease terms, payments, and extra charges.
- Certain restrictions apply to the use of percentage rates in lease advertisements, and some third-party fees may be excluded from periodic payment disclosures in ads.
- The regulation includes provisions to limit balloon payments, protect consumers at lease termination, and set standards for wear and use charges and penalties.
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Description
Test your knowledge on the methods for consumers to obtain a paper copy of an electronic record after giving consent to receive information electronically, including any applicable fees and consent confirmation requirements.
