US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC1667f]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                         Part E--Consumer Leases
 
Sec. 1667f. Regulations


(a) Regulations authorized

                           (1) In general

        The Board shall prescribe regulations to update and clarify the 
    requirements and definitions applicable to lease disclosures and 
    contracts, and any other issues specifically related to consumer 
    leasing, to the extent that the Board determines such action to be 
    necessary--
            (A) to carry out this part;
            (B) to prevent any circumvention of this part; or
            (C) to facilitate compliance with the requirements of the 
        \1\ part.
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    \1\ So in original. Probably should be ``this''.
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                  (2) Classifications, adjustments

        Any regulations prescribed under paragraph (1) may contain 
    classifications and differentiations, and may provide for 
    adjustments and exceptions for any class of transactions, as the 
    Board considers appropriate.

(b) Model disclosure

                           (1) Publication

        The Board shall establish and publish model disclosure forms to 
    facilitate compliance with the disclosure requirements of this part 
    and to aid the consumer in understanding the transaction to which 
    the subject disclosure form relates.

                   (2) Use of automated equipment

        In establishing model forms under this subsection, the Board 
    shall consider the use by lessors of data processing or similar 
    automated equipment.

                          (3) Use optional

        A lessor may utilize a model disclosure form established by the 
    Board under this subsection for purposes of compliance with this 
    part, at the discretion of the lessor.

                          (4) Effect of use

        Any lessor who properly uses the material aspects of any model 
    disclosure form established by the Board under this subsection shall 
    be deemed to be in compliance with the disclosure requirements to 
    which the form relates.

(Pub. L. 90-321, title I, Sec. 187, as added Pub. L. 104-208, div. A, 
title II, Sec. 2605(b)(1), Sept. 30, 1996, 110 Stat. 3009-471.)


                             Effective Date

    Section 2605(b)(2) of div. A of Pub. L. 104-208 provided that:
    ``(A) In general.--Any regulation of the Board, or any amendment or 
interpretation of any regulation of the Board issued pursuant to section 
187 of the Truth in Lending Act [15 U.S.C. 1667f] (as added by paragraph 
(1) of this subsection), shall become effective on the first October 1 
that follows the date of promulgation of that regulation, amendment, or 
interpretation by not less than 6 months.
    ``(B) Longer period.--The Board may, at the discretion of the Board, 
extend the time period referred to in subparagraph (A) in accordance 
with subparagraph (C), to permit lessors to adjust their disclosure 
forms to accommodate the requirements of section 127 [187] of the Truth 
in Lending Act (as added by paragraph (1) of this subsection).
    ``(C) Shorter period.--The Board may shorten the time period 
referred to in subparagraph (A), if the Board makes a specific finding 
that such action is necessary to comply with the findings of a court or 
to prevent an unfair or deceptive practice.
    ``(D) Compliance before effective date.--Any lessor may comply with 
any means of disclosure provided for in section 127 [187] of the Truth 
in Lending Act (as added by paragraph (1) of this subsection) before the 
effective date of such requirement.
    ``(E) Definitions.--For purposes of this subsection, the term 
`lessor' has the same meaning as in section 181 of the Truth in Lending 
Act [15 U.S.C. 1667].''


           Congressional Findings and Declaration of Purposes

    Section 2605(a) of div. A of Pub. L. 104-208 provided that:
    ``(1) Findings.--The Congress finds that--
        ``(A) competition among the various financial institutions and 
    other firms engaged in the business of consumer leasing is greatest 
    when there is informed use of leasing;
        ``(B) the informed use of leasing results from an awareness of 
    the cost of leasing by consumers; and
        ``(C) there has been a continued trend toward leasing 
    automobiles and other durable goods for consumer use as an 
    alternative to installment credit sales and that leasing product 
    advances have occurred such that lessors have been unable to provide 
    consistent industry-wide disclosures to fully account for the 
    competitive progress that has occurred.
    ``(2) Purposes.--The purposes of this section are--
        ``(A) to assure a simple, meaningful disclosure of leasing terms 
    so that the consumer will be able to compare more readily the 
    various leasing terms available to the consumer and avoid the 
    uninformed use of leasing, and to protect the consumer against 
    inaccurate and unfair leasing practices;
        ``(B) to provide for adequate cost disclosures that reflect the 
    marketplace without impairing competition and the development of new 
    leasing products; and
        ``(C) to provide the Board with the regulatory authority to 
    assure a simplified, meaningful definition and disclosure of the 
    terms of certain leases of personal property for personal, family, 
    or household purposes so as to--
            ``(i) enable the lessee to compare more readily the various 
        lease terms available to the lessee;
            ``(ii) enable comparison of lease terms with credit terms, 
        as appropriate; and
            ``(iii) assure meaningful and accurate disclosures of lease 
        terms in advertisements.''