Consumer Lease and Lease-Purchase Agreement Act

Summary

Consumer Lease and Lease-Purchase Agreement Act - Amends the Consumer Credit Protection Act to revise disclosure requirements, including advertisement disclosure requirements, for consumer leases and to establish separate disclosure requirements for lease-purchase agreements. Requires information disclosed pursuant to such requirements to be segregated from all other terms and information provided. Includes among revised disclosures for consumer leases: (1) the total lease cost; (2) the amount of any required security deposit; (3) statements explaining certain information about the consumer's liability based on the residual value of the property; and (4) a statement referring the consumer to the appropriate lease document for information concerning other possible costs. Requires the following information to be disclosed for lease-purchase agreements: (1) the number, individual amount, timing, and total amount of payments; (2) a statement that the consumer will not own the property until all payments are made; (3) a statement referring the consumer to the contract for an explanation of other possible costs; (4) a statement that the consumer is responsible for the fair market value of lost, stolen, damaged, or destroyed property; and (5) a statement indicating whether the property is new or used. Requires that advertisements specify whether the advertised transaction is a lease or a lease-purchase agreement. Provides that a renegotiation is a new lease or agreement requiring new disclosures. Requires no disclosures for a lease or agreement extension. Requires lessors to pay consumers' attorney fees only in unsuccessful suits to collect more than the prescribed maximum amount at the end of a lease. Prescribes civil and criminal penalties for violations and outlines defenses. Authorizes civil actions against lessor assignees only if a violation is apparent on the face of the disclosure statement.

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1 official file

• Introduced in House

  summary · EN · 2 May 1985

  Open at official source

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