FRB: Consumer Affairs Letter CA 03 - 3 - Regulation M (Consumer Leasing Act Examination Procedures)

Attached is the recently approved Regulation M examination procedures package. There are three pieces to the package - (1) a narrative explanation of the key requirements (59 KB PDF) ; (2) examination objectives and procedures (94 KB PDF); and (3) an examination checklist (19 KB PDF) .

The package is updated to reflect a number of changes made to the regulation since the original release in October 1996. Regulation M implements the Consumer Leasing Act which aims to ensure that meaningful and accurate disclosure of lease terms is provided to consumers before entering into a contract. With this information, consumers can more easily compare one lease with another, as well as compare the cost of leasing with the cost of buying on credit or the opportunity cost of paying cash.

Please distribute the enclosed procedures to your examination staff for immediate use. If you have any questions regarding this matter, please contact your review examiner or Jill Lohr Chase at (202)785-6054.