Consumer Justice Center Consumer Leasing Act

Consumer Leasing Act

When you lease there is a federal law that will help you shop for the best deal. The
Consumer Leasing Act requires leasing companies to inform you the facts about the cost and terms of their contract. You can use this information to compare one lease with another or to compare the cost of leasing verses buying the same property. The law also limits any extra payment you may have to make at the end of a lease and regulates lease advertising. The information below describes the Consumer Leasing Act.

What leases are covered?

The law applies to personal property leased by an individual for the period of more than four months for personal, family, or household use. It covers long term rentals of cars furniture, appliances, and other personal property.

What are the costs of a lease?

Before you agree to a lease, the law requires that you get a written statement of its costs, including

the amount of any advance payment, such as a security deposit;

the number, the amount, and the dates your regular payments are due, as well as the total amount of those payments; and

the amount you must pay for license, registration and taxes, and for any other fees, such as maintenance

What are the penalties?

You as an individual may sue a leasing company if it fails to give you the required information or does it improperly. You may sue for 25% of the total of the monthly payments, but not less than $100 or more than $1000 plus any actual damages. If an advisement violates the law, you may sue the leasing company for your actual damages. In any successful lawsuit, you are entitled to court costs and reasonable attorney's fees. You must file the suit within one year of the termination of the lease agreement. As with any lawsuit, please consult your attorney.


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