FRSFinal Rule
Consumer Leasing (Regulation M)
Finance & Banking
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Summary
Regulation M sets rules that protect consumers who lease cars, appliances, and other personal property by requiring companies to clearly disclose all costs and terms upfront. This regulation helps people understand exactly what they're paying for and their rights during a lease before they sign any agreement.
Key Points
- 1Leasing companies must provide written disclosure of all charges, including monthly payments, fees, wear-and-tear conditions, and end-of-lease costs before you sign
- 2Companies cannot hide surprise fees or bury important information in fine print—all terms must be in plain, easy-to-understand language
- 3You have the right to cancel a lease agreement within a certain period and receive a full explanation of any cancellation penalties
- 4The regulation covers all personal property leases (cars, furniture, electronics) for consumers, not just major purchases
- 5The Federal Reserve enforces these rules and can penalize companies that violate disclosure requirements or trick consumers
Key Dates
Published
December 15, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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