Regulation M - Consumer Leasing

Question 1

Reg M - Consumer Leasing Coverage

Answer 1

1) Covers Consumer Leases (vehicle leases)
- lease of personal property to a natural person
- primarily for personal, family, or household purposes
- more than 4 month term
- obligation less than current Reg Z threshold
- excludes commercial leases, real estate leases, agriculture leases
2) Closed-end or open–end credit
3) Segregated (appear in the form of the rule) and Non-segregated (can be provided in the form you choose) disclosures

Question 2

Reg M - Consumer Leasing Disclosures

Answer 2

1) Must be given prior to consumption
- must be dated
- must identify the lessor and lessee
2) Early termination warning
3) Right to a property appraisal
4) Lessee must have a copy before closing
5) Copy must go to primary lessee