(a) Authority. The regulation in this part, known as Regulation M, is issued by the
Board of Governors of the Federal Reserve System to implement the consumer
leasing provisions of the Truth in Lending Act, which is title I of the
Consumer Credit Protection Act, as amended (15 USC 1601 et seq.).
Information-collection requirements contained in this regulation have been
approved by the Office of Management and Budget under the provisions of 44
USC 3501 et seq. and have been assigned OMB control number
7100-0202.
(b) Scope and purpose. This part applies to all persons that are lessors of personal property
under consumer leases as those terms are defined in section 213.2(e)(1) and
(h). The purpose of this part is—
(1) to ensure that lessees of personal property receive meaningful
disclosures that enable them to compare lease terms with other leases and,
where appropriate, with credit transactions;
(2) to limit the amount of balloon payments in consumer lease transactions;
and
(3) to provide for the accurate disclosure of lease terms in
advertising.
(c) Enforcement and liability. Section 108 of the act contains the administrative enforcement
provisions. Sections 112, 130, 131, and 185 of the act contain the liability
provisions for failing to comply with the requirements of the act and this
part.
