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Consumer Leasing Act Compliance Delayed

Wednesday, January 1, 1997

The Federal Reserve Board has delayed the compliance date for the final rule regarding the Consumer Leasing Act (Regulation M) until Jan. 1, 1998. This Act covers leases for cars, furniture, cell phones and other items consumers might lease. But most of the recent attention on leasing has focused on vehicles. The Act requires lessors to provide consumers with uniform cost and other disclosures about consumer lease transactions.

The new date applies not only to the final rule published in the Federal Register on Oct. 7, 1996, but also to an amendment published April 1, 1997, and the official staff commentary published April 4, 1997.

The Fed is offering a free pamphlet called Keys to Vehicle Leasing: A Consumer Guide, which offers a general overview of a closed-end lease, a comparison of leasing and buying, and a sample consumer leasing form. To order this pamphlet, contact the St. Louis Fed's Public Affairs Department at (314) 444-8809.