ERIC Number: ED235072
Record Type: Non-Journal
Publication Date: 1983-Feb
Reference Count: N/A
Truth in Leasing.
Board of Governors of the Federal Reserve System, Washington, DC.
Designed for the general public and possibly suitable also for high school economics students, this pamphlet discusses the Consumer Leasing Act. The act requires leasing companies to inform consumers of the costs and terms of their contracts, limits any extra payments at the end of a lease, and regulates lease advertising. The pamphlet focuses on personal property leased by an individual for a period of more than four months for personal, family, or household use. General rules for leasing are presented: (1) the law does not cover daily car rentals, apartment or house leases, or business property leases; (2) customers must receive a written statement of all costs involved; (3) customers must be told certain terms of the lease; (4) customers must be told if they may have balloon payments and how they are calculated; (5) customers may obtain an estimate of the property's worth from an independent appraiser; and (6) balloon payments in an open-end lease are limited to no more than three times the average monthly payment. Also included is a look at shopping suggestions, advertising regulations, and penalties for violators. The final section presents a list of names and locations of federal enforcement agencies which deal with questions concerning leasing. (LH)
Publication Type: Guides - General; Legal/Legislative/Regulatory Materials
Education Level: N/A
Authoring Institution: Board of Governors of the Federal Reserve System, Washington, DC.