Consumer Leasing Act With Essay
Description
How to fill out Federal Consumer Leasing Act Disclosure Form?
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FAQ
Consumer Lease. A consumer lease is a lease contract between a. lessor and a lessee. ? For the use of personal property by an individual. (natural person)
The Consumer Leasing Act (CLA) was enacted in 1976 as part of the Truth in Lending Act (TILA) to protect lessees from unclear or deceiving statements and advertisements by lessors.
A consumer lease lets you rent an item, like a laptop, TV or fridge, for a set amount of time. You make regular rental payments, typically weekly or fortnightly, until the lease ends. At the end of the lease, you don't own the item. The company you leased it from does.
The Consumer Leasing Act (15 U.S.C. 1667 et seq.) (CLA) was passed in 1976 to assure that meaningful and accurate disclosure of lease terms is provided to consumers before entering into a contract. It applies to consumer leases of personal property.
Example: A car dealership offers a consumer lease to a customer who wants to lease a car for personal use. The customer pays a monthly fee to use the car for a specified period, usually a few years. At the end of the lease term, the customer can either return the car or buy it at a predetermined price.