(a) Regulations authorized
(1) In generalThe Bureau shall prescribe regulations to update and clarify the requirements and definitions applicable to lease disclosures and contracts, and any other issues specifically related to consumer leasing, to the extent that the Bureau determines such action to be necessary—
(A)
to carry out this part;
(B)
to prevent any circumvention of this part; or
(C)
to facilitate compliance with the requirements of the part.
(2) Classifications, adjustments
Any regulations prescribed under paragraph (1) may contain classifications and differentiations, and may provide for adjustments and exceptions for any class of transactions, as the Bureau considers appropriate.
(b) Model disclosure
(1) Publication
The Bureau shall establish and publish model disclosure forms to facilitate compliance with the disclosure requirements of this part and to aid the consumer in understanding the transaction to which the subject disclosure form relates.
(2) Use of automated equipment
In establishing model forms under this subsection, the Bureau shall consider the use by lessors of data processing or similar automated equipment.
(3) Use optional
A lessor may utilize a model disclosure form established by the Bureau under this subsection for purposes of compliance with this part, at the discretion of the lessor.
(4) Effect of use
Any lessor who properly uses the material aspects of any model disclosure form established by the Bureau under this subsection shall be deemed to be in compliance with the disclosure requirements to which the form relates.
(
Pub. L. 90–321, title I, § 187, as added
Pub. L. 104–208, div. A, title II, § 2605(b)(1),
Sept. 30, 1996,
110 Stat. 3009–471; amended
Pub. L. 111–203, title X, § 1100A(2), (10),
July 21, 2010,
124 Stat. 2107, 2109.)
Amendments
2010—Pub. L. 111–203, § 1100A(2), (10), substituted “Bureau” for “Board”, “the Bureau” for “the Board”, and “The Bureau” for “The Board ” wherever appearing.
Effective Date
Section 2605(b)(2) of div. A of Pub. L. 104–208 provided that:
“(A) In general.—
Any regulation of the Board, or any amendment or interpretation of any regulation of the Board issued pursuant to section 187 of the
Truth in Lending Act [
15 U.S.C. 1667f] (as added by paragraph (1) of this subsection), shall become effective on the first October 1 that follows the date of promulgation of that regulation, amendment, or interpretation by not less than 6 months.
“(B) Longer period.—
The Board may, at the discretion of the Board, extend the time period referred to in subparagraph (A) in accordance with subparagraph (C), to permit
lessors to adjust their disclosure forms to accommodate the requirements of section 127 [187] of the
Truth in Lending Act (as added by paragraph (1) of this subsection).
“(C) Shorter period.—
The Board may shorten the time period referred to in subparagraph (A), if the Board makes a specific finding that such action is necessary to comply with the findings of a court or to prevent an unfair or deceptive practice.
“(D) Compliance before effective date.—
Any
lessor may comply with any means of disclosure provided for in section 127 [187] of the
Truth in Lending Act (as added by paragraph (1) of this subsection) before the effective date of such requirement.
Congressional Findings and Declaration of Purposes
Section 2605(a) of div. A of Pub. L. 104–208 provided that:
“(1) Findings.—The Congress finds that—
“(A)
competition among the various financial institutions and other firms engaged in the business of consumer leasing is greatest when there is informed use of leasing;
“(B)
the informed use of leasing results from an awareness of the cost of leasing by consumers; and
“(C)
there has been a continued trend toward leasing automobiles and other durable goods for consumer use as an alternative to installment credit sales and that leasing product advances have occurred such that
lessors have been unable to provide consistent industry-wide disclosures to fully account for the competitive progress that has occurred.
“(2) Purposes.—The purposes of this section are—
“(A)
to assure a simple, meaningful disclosure of leasing terms so that the consumer will be able to compare more readily the various leasing terms available to the consumer and avoid the uninformed use of leasing, and to protect the consumer against inaccurate and unfair leasing practices;
“(B)
to provide for adequate cost disclosures that reflect the marketplace without impairing competition and the development of new leasing products; and
“(C) to provide the Board with the regulatory authority to assure a simplified, meaningful definition and disclosure of the terms of certain leases of personal property for personal, family, or household purposes so as to—
“(i)
enable the
lessee to compare more readily the various lease terms available to the
lessee;
“(ii)
enable comparison of lease terms with credit terms, as appropriate; and
“(iii)
assure meaningful and accurate disclosures of lease terms in advertisements.”
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