Description: TO PASS H.R. 8835, AMENDING THE TRUTH-IN-LENDING ACT RELATING TO LEASING.
Bill summary: (Conference report filed in House, H. Rept. 94-872)
Consumer Leasing Act - Declares it a purpose of the Truth in Lending Act to assure a meaningful disclosure of the terms of a consumer lease so as to enable the lessee to compare more readily the various lease terms available to him, to limit balloon payments, to enable comparison of lease terms with other credit terms, and to assure meaningful and accurate advertisements.
Requires each lessor to give to each lessee prior to the consummation of
a consumer lease specified disclosures in a clear and conspicuous manner, including a brief description or identification of the leased property; the amount of any payment required of the lessee at the inception of the lease; a statement notifying the lessee of liability for the differential between the anticipated fair market value of the property and its appraised actual value at the end of the lease; a statement of the amount of any liabilities the lease imposes upon the lessee at the end of the lease; a statement identifying all express warranties; a description of insurance provided; and a description of any security interest held by the lessor.
Limits the liability of the lessee by requiring that the estimate residual value of the leased property be a reasonable approximation of the anticipated actual fair market value of the property on the lease's expiration.
Provides that where the lessee has such liability on the expiration of a consumer lease there shall be a rebuttable presumption that the lessor's estimated residual value is not in good faith to the extent that it exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease.
Requires consumer lease advertising to include information about such leases.
Makes a lessor who violates the provisions of this Act civilly liable to the lessee.
Declares that the provisions of this Act do not exempt any person from complying with State law except to the extent that those laws are inconsistent with any provision of this Act.
Effectuates this Act one year after enactment.
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Bill titles: An Act to amend the Truth in Lending Act to protect consumers against inadequate and misleading leasing information, assure meaningful disclosure of lease terms, and limit ultimate liability in connection with leasing of personal property primarily for personal, family, or household purposes, and for other purposes.; A bill to amend the Truth in Lending Act to protect consumers against inadequate and misleading leasing information, assure meaningful disclosure of lease terms and limit ultimate liability in connection with leasing of personal, family, or household purposes.
Original source documents: Digest of the Congressional Record vol. 121-157, p. H10314;
Links for more info on the vote: congress.gov