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TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part E >
Sec. 1667a.
Consumer lease disclosures
(1)
A brief description or identification of the
leased property;
(2)
The amount of any payment by the lessee required
at the inception of the lease;
(3)
The amount paid or payable by the lessee for
official fees, registration, certificate of title, or license fees
or taxes;
(4)
The amount of other charges payable by the lessee
not included in the periodic payments, a description of the charges
and that the lessee shall be liable for the differential, if any,
between the anticipated fair market value of the leased property
and its appraised actual value at the termination of the lease,
if the lessee has such liability;
(5)
A statement of the amount or method of determining
the amount of any liabilities the lease imposes upon the lessee
at the end of the term and whether or not the lessee has the option
to purchase the leased property and at what price and time;
(6)
A statement identifying all express warranties
and guarantees made by the manufacturer or lessor with respect to
the leased property, and identifying the party responsible for maintaining
or servicing the leased property together with a description of
the responsibility;
(7)
A brief description of insurance provided or
paid for by the lessor or required of the lessee, including the
types and amounts of the coverages and costs;
(8)
A description of any security interest held or
to be retained by the lessor in connection with the lease and a
clear identification of the property to which the security interest
relates;
(9)
The number, amount, and due dates or periods
of payments under the lease and the total amount of such periodic
payments;
(10)
Where the lease provides that the lessee shall
be liable for the anticipated fair market value of the property
on expiration of the lease, the fair market value of the property
at the inception of the lease, the aggregate cost of the lease on
expiration, and the differential between them; and
(11)
A statement of the conditions under which the
lessee or lessor may terminate the lease prior to the end of the
term and the amount or method of determining any penalty or other
charge for delinquency, default, late payments, or early termination.
The disclosures required under this section may
be made in the lease contract to be signed by the lessee. The Board
may provide by regulation that any portion of the information required
to be disclosed under this section may be given in the form of estimates
where the lessor is not in a position to know exact information
TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part E >
Sec. 1667b.
Lessee's liability on expiration or termination of lease
(a) Estimated residual value of property as
basis; presumptions; action by lessor for excess liability; mutually
agreeable final adjustment
Where the lessee's liability on expiration of a consumer lease
is based on the estimated residual value of the property such estimated
residual value shall be a reasonable approximation of the anticipated
actual fair market value of the property on lease expiration. There
shall be a rebuttable presumption that the estimated residual value
is unreasonable to the extent that the estimated residual value
exceeds the actual residual value by more than three times the average
payment allocable to a monthly period under the lease. In addition,
where the lessee has such liability on expiration of a consumer
lease there shall be a rebuttable presumption that the lessor's
estimated residual value is not in good faith to the extent that
the estimated residual value exceeds the actual residual value by
more than three times the average payment allocable to a monthly
period under the lease and such lessor shall not collect from the
lessee the amount of such excess liability on expiration of a consumer
lease unless the lessor brings a successful action with respect
to such excess liability. In all actions, the lessor shall pay the
lessee's reasonable attorney's fees. The presumptions stated in
this section shall not apply to the extent the excess of estimated
over actual residual value is due to physical damage to the property
beyond reasonable wear and use, or to excessive use, and the lease
may set standards for such wear and use if such standards are not
unreasonable. Nothing in this subsection shall preclude the right
of a willing lessee to make any mutually agreeable final adjustment
with respect to such excess residual liability, provided such an
agreement is reached after termination of the lease.
(b) Penalties and charges for delinquency, default, or early termination
Penalties or other charges for delinquency, default, or early
termination may be specified in the lease but only at an amount
which is reasonable in the light of the anticipated or actual harm
caused by the delinquency, default, or early termination, the difficulties
of proof of loss, and the inconvenience or nonfeasibility of otherwise
obtaining an adequate remedy.
(c) Independent professional appraisal of residual value of property
at termination of lease; finality
If a lease has a residual value provision at the termination of
the lease, the lessee may obtain at his expense, a professional
appraisal of the leased property by an independent third party agreed
to by both parties. Such appraisal shall be final and binding on
the parties
TITLE 15 > CHAPTER 41 > SUBCHAPTER I > Part E >
Sec. 1667c.
Consumer lease advertising; liability of advertising
media
(a) In general
If an advertisement for a consumer lease includes a statement
of the amount of any payment or a statement that any or no initial
payment is required, the advertisement shall clearly and conspicuously
state, as applicable -
(1)
the transaction advertised is a lease;
(2)
the total amount of any initial payments required
on or before consummation of the lease or delivery of the property,
whichever is later;
(3)
that a security deposit is required;
(4)
the number, amount, and timing of scheduled payments;
and
(5)
with respect to a lease in which the liability
of the consumer at the end of the lease term is based on the anticipated
residual value of the property, that an extra charge may be imposed
at the end of the lease term.
(b) Advertising medium not liable
No owner or employee of any entity that serves as a medium in
which an advertisement appears or through which an advertisement
is disseminated, shall be liable under this section.
(c) Radio advertisements
(1) In general
An advertisement by radio broadcast to aid, promote,
or assist, directly or indirectly, any consumer lease shall be deemed
to be in compliance with the requirements of subsection (a) of this
section if such advertisement clearly and conspicuously -
(A)
states the information required by paragraphs
(1) and (2) of subsection (a) of this section;
(B)
states the number, amounts, due dates or periods
of scheduled payments, and the total of such payments under the
lease;
(C)
includes -
(i)
a referral to -
(I)
a toll-free telephone number established in accordance
with paragraph (2) that may be used by consumers to obtain the information
required under subsection (a) of this section; or
(II)
a written advertisement that -
(aa)
appears in a publication in general circulation
in the community served by the radio station on which such advertisement
is broadcast during the period beginning 3 days before any such
broadcast and ending 10 days after such broadcast; and
(bb)
includes the information required to be disclosed
under subsection (a) of this section; and
(ii)
the name and dates of any publication referred
to in clause (i)(II); and
(D)
includes any other information which the Board
determines necessary to carry out this part.
(2) Establishment of toll-free number
(A) In general
In the case of a radio broadcast advertisement
described in paragraph (1) that includes a referral to a toll-free
telephone number, the lessor who offers the consumer lease shall
-
(i)
establish such a toll-free telephone number not
later than the date on which the advertisement including the referral
is broadcast;
(ii)
maintain such telephone number for a period of
not less than 10 days, beginning on the date of any such broadcast;
and
(iii)
provide the information required under subsection
(a) of this section with respect to the lease to any person who
calls such number.
(B) Form of information
The information required to be provided under
subparagraph (A)(iii) shall be provided verbally or, if requested
by the consumer, in written form.
(3) No effect on other law
Nothing in this subsection shall affect the requirements
of Federal law as such requirements apply to advertisement by any
medium other than radio broadcast
TITLE 15 > CHAPTER 41 > SUBCHAPTER I >
Part E > Sec. 1667d.
Civil liability of lessors
(a) Grounds for maintenance of action
Any lessor who fails to comply with any requirement imposed under
section 1667a or 1667b of this title
with respect to any person is liable to such person as provided
in section 1640 of this title.
(b) Additional grounds for maintenance of action; ''creditor''
defined
Any lessor who fails to comply with any requirement imposed under
section 1667c of this title
with respect to any person who suffers actual damage from the violation
is liable to such person as provided in section 1640 of this title.
For the purposes of this section, the term ''creditor'' as used
in sections 1640 and 1641 of this title
shall include a lessor as defined in this part.
(c) Jurisdiction of courts; time limitation
Notwithstanding section 1640(e) of this title,
any action under this section may be brought in any United States
district court or in any other court of competent jurisdiction.
Such actions alleging a failure to disclose or otherwise comply
with the requirements of this part shall be brought within one year
of the termination of the lease agreement
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