by Regulation M is a federal regulation issued by the Federal Reserve Board that applies to consumer leases of personal property. The regulation is designed to protect consumers by ensuring that they are provided with accurate and meaningful information about the terms of a consumer lease and the total cost of leasing the property.
The main provisions of Regulation M include:
- Disclosure requirements: Regulation M requires lessors to disclose specific information about the lease, including the total amount due at lease signing, the number, amount, and due dates of lease payments, and any additional fees or charges.
- Advertising requirements: Regulation M requires lessors to include certain information in advertising for consumer leases, such as the total amount due at lease signing and the total number of payments required under the lease.
- Early termination rights: Regulation M requires lessors to disclose the consumer’s rights to terminate the lease early and the conditions under which the consumer may terminate the lease early.
- Recordkeeping requirements: Regulation M requires lessors to maintain records of all consumer leases for at least two years.
- Regulation M applies to consumer leases of personal property, including vehicles, furniture, appliances, and consumer electronics. It does not apply to leases of real property, such as rental of an apartment or house.
The regulation is intended to ensure that consumers have the information they need to make informed decisions about whether to lease personal property and to compare the costs and terms of different leases. The regulation also aims to prevent consumer deception and unfair practices in consumer leasing.
Violations of Regulation M can result in penalties and fines and may also result in consumer lawsuits.
