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The Consumer Leasing Act (15 USC 1667) is a U.S. law that was passed in 1976 to assure that meaningful and accurate disclosure of lease erms is provided to consumers before entering into a contract. It applies to consumer leases of personal property. 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. In addition, the Consumer Leasing Act puts limits on balloon payments sometimes due at the end of a lease, and regulates advertising. Originally, it was part of the Truth in Lending Act and was implemented by Regulation Z. When Regulation Z was revised in 1981, Regulation M was issued with those provisions that require meaningful disclosure of leasing terms. The code under the FRB was 12 CFR 213; however, under the CFPB it is codified at 12 CFR 1013.
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