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The Act requires that certain lease costs and terms be disclosed, imposes limitations on the size of penalties for delinquency or default and on the size of residual liabilities, and requires certain disclosures in lease advertising.
A consumer lease is a contract for the hire (rental) of goods where the consumer has no right to purchase the goods. ( s. 169 NCC) Some examples of consumer leases: Car lease.
Consumer leases may include:Automobile leases, Furniture leases, & Other personal property leases. Closed-end (walk-away) leases. Open-end leases.
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.
This Act, amending the Truth in Lending Act, regulates personal property leases that exceed four months in duration and that are made to consumers for personal, family, or household purposes.
New disclosures also must be provided when a consumer renegotiates, or extends a lease, subject to certain exceptions. In the event of multiple lessors, one lessor on behalf of all the lessors may make the required disclosures.
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.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) increased the threshold in the Consumer Leasing Act (CLA) for exempt consumer leases, and the threshold in the Truth in Lending Act (TILA) for exempt consumer credit transactions, from $25,000 to $50,000, effective July 21, 2011.