The Consumer Leasing Act (CLA) was enacted in 1976 as an amendment to the Truth in Lending Act (TILA). The purpose of the CLA is to ensure meaningful and accurate disclosure of the terms of personal property leases for personal, family, or household use. The CLA and Regulation M require lessors to provide consumers with uniform cost and other disclosures about consumer lease transactions. The CLA has been implemented in Regulation M of the Board of Governors of the Federal Reserve System (Board), 12 CFR 213. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)transferred rulemaking authority for the CLA to the Bureau of Consumer Financial Protection (CFPB), effective July 21, 2011. The CFPB has published for public comment an interim final rule establishing a new Regulation M (Consumer Leasing),12 CFR Part 1013, implementing the CLA.
The interim final rule substantially duplicates the Board’s Regulation M as the Bureau’s new Regulation M, making only certain non-substantive, technical, formatting, and stylistic changes. The interim final rule does not impose any new substantive obligations on regulated entities.
A copy of revised Regulation M is located at: https://mycomplianceresource.com/CFPB-Reg-M-Consumer-Leasing.html. The Federal Register copy is available at: https://mycomplianceresource.com/CFPB-The-Inherited-Regulations.html.
