Circular
Regulation M - Consumer Leasing
April 30, 1997
Circular No. 10948

Amendments on Advertising Disclosures for Lease Transactions

Revision of Official Staff Commentary

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The following is from a statement issued by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has announced revisions to Regulation M to implement amendments to the Consumer Leasing Act.

The act requires lessors to provide uniform cost and other disclosures for car leasing and other types of consumer lease transactions.

The revisions are effective April 1, 1997, but compliance is optional until October 1, 1997.

The revisions primarily implement amendments to the act contained in the Economic Growth and Regulatory Paperwork Reduction Act of 1996, which streamline the advertising disclosures for lease transactions. The revisions make the disclosure of upfront costs in connection with a specific lease agreement parallel to statutory changes to the advertising rules.

In addition, the revisions contain several technical amendments to the regulation.

The Board of Governors also has issued a revised version of the Official Staff Commentary to Regulation M. The commentary applies and interprets the requirements of Regulation M. The revised staff commentary also is effective April 1, 1997, with compliance optional until October 1, 1997.

The amendments to Regulation M, as printed in the Federal Register of April 1, is available as a (pdf) file and the revised Official Staff Commentary to Regulation M, as printed in the Federal Register of April 4, is available as a (pdf) file. Questions on this matter may be directed to Janice A. Oser, Supervising Examiner, Compliance Examinations Department .