Wednesday, September 9, 2009

Consumer Leasing Act

In 1976 Congress passed the Consumer Leasing Act, which requires disclosure by leasing companies of the essential terms of any lease involving personal property. Short-term leases are excluded, but all those with terms over four months are covered by the law. The leased property must be designed for personal, family, or household use. The applicant (or lessee) is entitled to a written statement of all charges, specifying the number and amount of payments, any property maintenance costs, taxes, or other fees. The customer must be told about any insurance required, the terms under which the lease may be canceled, any penalties for late payments, and any express warranties which go with the property. The lease customer is entitled to sue for damages plus court costs if the requirements of the law are not met.

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