Consumer Leasing

Overview

Banks are generally permitted to engage in leasing of personal property under consumer leases. This page provides relevant materials as to the authority of banks to engage in leasing activities, as well as information regarding Regulation M, which implements the consumer leasing provisions of the Truth in Lending Act (see also the topic page on TILA). Regulation M applies to all persons who are lessors of personal property under consumer leases. Its purposes are to:

  • ensure that lessees of personal property receive meaningful disclosures that enable them to compare lease terms with other leases and, where appropriate, with credit transactions;
  • limit the amount of balloon payments in consumer lease transactions; and
  • provide for the accurate disclosure of lease terms in advertising.
Scott.Cammarn@cwt.com's picture
Contributor Organization 
Contributor Title 
Partner
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Contributor Organization 
Contributor Title 
Partner, Banking

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Statutes

Leasing Regulations 

Dodd-Frank Provisions