Leasing is an alternative to buying personal property with cash or on credit. A lease is a contract between a lessor (the property owner) and a lessee (the person who leases and uses the property) for the use of personal property. The lease has stated terms and limitations, is made for a specified period of time, and requires a specified lease payment.
The Consumer Leasing Act (15 U.S.C. § 1667 et seq (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .) (CLA) was passed in 1976 so consumers get meaningful and accurate disclosure of lease terms before they enter into a contract. With this information, consumers can more easily compare one lease with another, and compare the cost of leasing with the cost of buying on credit or the opportunity cost of paying cash. In addition, the CLA limits balloon payments due at the end of the lease, and regulates advertising for leasing transactions.
The CLA was Part E of the Truth in Lending Act, originally implemented by Regulation Z. When Regulation Z was revised in 1981, Regulation M was issued, governing consumer leases.
On November 9, 2007, amendments to Regulation M and the official staff commentary were issued to simplify the regulation and provide guidance on the electronic delivery of disclosures consistent with the Electronic Signatures in Global and National Commerce Act (E-Sign Act), 15 U.S.C. §§ 7001 et seq (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
The Dodd-Frank Act gave the Consumer Financial Protection Bureau (CFPB) authority to make rules under the CLA. For entities under its jurisdiction, the CFPB also enforces compliance with the CLA and its implementing regulation. The CFPB restated the implementing regulation at 12 CFR Part 1013 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) in December 2011 (76 Fed. Reg. 78500).
NOTE: NCUA Rules and Regulations § 714 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) provides additional standards and requirements a federal credit union must follow when engaged in the leasing of personal property.
You can find the full text of the CLA here (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
You can find the full text of Regulation M here (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
You can find the full text of § 714 of NCUA Rules and Regulations here (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) .
- Definitions (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).)
- Associated Risks
- Examination Objectives
- Examination Procedures
- Checklist
Associated Risks
Compliance risk can occur when the credit union fails to implement the necessary controls to comply with the CLA and Regulation M.
Reputation risk can occur when the credit union incurs decreased member confidence as a result of failures resulting from leases, or incurs fines and penalties.
Strategic risk occurs when the board of directors fails to perform necessary due diligence in reviewing existing and prospective products and services for compliance.
Examination Objectives
- To assess the quality of the credit union’s compliance management system for the CLA.
- To determine whether lessees of personal property are given meaningful and accurate disclosures of lease terms.
- To determine if the limits of liability are clearly indicated to lessees and correctly enforced by the credit union.
- To ensure that the credit union provides accurate disclosures in all consumer lease advertising.
Examination Procedures
General Disclosure Requirements
- Review the credit union’s procedures for providing disclosures to ensure that there are adequate compliance controls and procedures.
- Review the disclosures provided by the credit union.
- Are the disclosures clear and conspicuous and provided in writing in a form the consumer may keep? For disclosures provided electronically (other than in advertising), are they provided in compliance with the consumer consent and other applicable provisions of the E-Sign Act? For advertisements accessed in electronic form, are the disclosures required by § 1013.7 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) provided in electronic form in the advertisement? (§ 1013.3(a) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are disclosures dated and in the prescribed format? (§ 1013.3(a)(1) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Is the information required by § 1013.4(b) through (f), (g)(2), (h)(3), (i)(1), (j), and (m)(1) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) segregated, and in a form substantially similar to the model in Appendix A (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ? (§ 1013.3(a)(2) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are the disclosures timely? (§ 1013.3(a)(3) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- If there is more than one lessee, are the disclosures provided to any lessee who is primarily liable? (§ 1013.3(c) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- If additional information is provided, is it provided in a manner that does not mislead or confuse the lessee? (§ 1013.3(b) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are all estimates clearly identified and reasonable? (§ 1013.3(d) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are the disclosures accurate and do they contain the information required by § 1013.4(a) through (t) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ?
- Are disclosures given to lessees when they "renegotiate" or "extend" consumer leases? (§ 1013.5 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
Lessee Liability
- Review the lease estimates and calculations to ensure that there is no unreasonable balloon payment expected in the following circumstances:
- At early termination:
- Does the lessor disclose the conditions under which the lease may be terminated early, and the amount and method of determining any early termination charges? (§ 1013.4(g)(1) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are any early termination charges reasonable? (§ 1013.4(g)(1), (q) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- At lease end:
- If the lessor sets standards for wear and use of a leased vehicle, are the amounts or method of determining any charge for excess mileage disclosed? (§ 1013.4(h)(3) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are standards for wear and use reasonable? (§ 1013.4(h)(2) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- At lease end (for open-end leases):
- Does the lessor disclose limitations on the lessee’s liabilities at the end of the lease term? (§ 1013.4(m)(2) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are the lessee and lessor permitted to make a mutually agreeable final adjustment regarding excess liability? (§ 1013.4(m)(3) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- In default or late payment:
- Does the lessor disclose penalties or other charges for default or late payments? (§ 1013.4(q) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are the penalties or charges reasonable? (§ 1013.4(q) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- At early termination:
Advertising
- Review the credit union’s advertising policies and procedures to ensure adequate compliance controls and procedures.
- Review a sample of the credit union’s consumer leasing advertisements.
- Do the advertisements advertise terms that are usually and customarily available? (§ 1013.7(a) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Are the disclosures in the advertisements clear and conspicuous? (§ 1013.7(b) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Do catalogs, multiple page advertisements and electronic advertisements comply with the page reference requirements? (§ 1013.7(c) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- When triggering terms are used, do the advertisements contain the required additional information? (§ 1013.7(d) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- Do merchandise tags that use triggering terms refer to a sign or display that contains the required additional disclosures? (§ 1013.7(e) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
- If television or radio advertisements use triggering terms but do not contain the additional terms required by § 1013.7(d)(2) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) , do they use alternative disclosure methods (i.e., direct consumers to a toll-free number or written advertisement)? (§ 1013.7(f) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
Miscellaneous
- Are records and other evidence of compliance (other than for advertising requirements under § 1013.7 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ) retained for not less than two (2) years? (§ 1013.8 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) )
Consumer Leasing Act (CLA)
(Regulation M)
Checklist
Item | Description | YES | NO | N/A |
---|---|---|---|---|
1 | Does the credit union engage in consumer leasing or purchase consumer leases from lessors? (§ 1013.2(h)) (opens new window)
(You will be leaving NCUA.gov and accessing a non-NCUA website.
We encourage you to read the NCUA's
exit link policies. (opens new page).)
NOTE: If not, do no further work on Consumer Leasing. Otherwise, complete the checklist, answering Yes, No, or N/A for each item. |
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2 | Are disclosures made prior to consummation of consumer leases, i.e., when a binding order is made or the lease is signed? (§ 1013.3(a)(3)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
3 | Are disclosures clear and conspicuous, and provided in writing in a form the consumer may keep? (§ 1013.3(a)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
4 | Are electronic disclosures provided in compliance with the consumer consent and other applicable provisions of the E-Sign Act? (§ 1013.3(a)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
5 | For an advertisement accessed by the consumer in electronic form, are the disclosures required by § 1013.7 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) provided to the consumer in electronic form in the advertisement? (§ 1013.3(a)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
6 | Are the disclosures given in a dated statement and made either in (i) a separate statement that identifies the consumer lease transaction, (ii) the contract, or (iii) another document evidencing the lease? (§ 1013.3(a)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
7 | Is information required by § 1013.4(b) through (f), (g)(2), (h)(3), (i)(1), (j), and (m)(1) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) segregated, and in a form substantially similar to the model in Appendix A (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) ? (§ 1013.3(a)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
8 | If the lease involves more than one lessee, are disclosures provided to any lessee who is primarily liable? (§ 1013.3(c)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
9 | If additional information is provided, is it provided in a manner such that it does not mislead or confuse the lessee? (§ 1013.3(b)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
10 | Are disclosures provided to at least one lessee where there are multiple lessees, and by at least one lessor when there are multiple lessors? (§ 1013.3(c)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
11 | Are all estimates clearly identified and reasonable? (§ 1013.3(d)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12 | Are the following disclosures made in the lease? | |||
12A | Description of property; (§ 1013.4(a)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12B | Amount due at lease signing or delivery; (§ 1013.4(b)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12C | Payment schedule and total amount of periodic payments; (§ 1013.4(c)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12D | Other charges; (§ 1013.4(d)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12E | Total of payments; (§ 1013.4(e)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12F | Regarding payment calculations: | |||
12Fi | Gross capitalized cost; (§ 1013.4(f)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fii | Capitalized cost reduction; (§ 1013.4(f)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fiii | Adjusted capitalized cost; (§1013.4(f)(3)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fiv | Residual value; (§ 1013.4(f)(4)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fv | Depreciation and any amortized amounts; (§ 1013.4(f)(5)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fvi | Rent charge; (§ 1013.4(f)(6)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fvii | Total of base periodic payments; (§ 1013.4(f)(7)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fviii | Lease payments; (§ 1013.4(f)(8)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fix | Base periodic payment; (§ 1013.4(f)(9)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fx | Itemization of other charges; (§ 1013.4(f)(10)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Fxi | Total periodic payment. (§ 1013.4(f)(11)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12G | Regarding early termination: | |||
12Gi | Conditions under which the lessee or lessor may terminate the lease before the end of the lease term; (§ 1013.4(g)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Gii | The amount or description of the method for determining the amount of any penalty or other charges for early termination; (§ 1013.4(g)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Giii | In a form substantially similar to the sample; (§ 1013.4(g)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12H | Regarding notice of wear and use: | |||
12Hi | Whether the lessor or the lessee is responsible for maintaining or servicing the leased property, with a description of the responsibility; (§ 1013.4(h)(i)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Hii | The lessor’s standards for wear and use, which must be reasonable; (§ 1013.4(h)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Hiii | In a form substantially similar to the sample. (§ 1013.4(h)(3)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12I | Purchase option; (§ 1013.4(i)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12J | Statement referencing other non-segregated disclosures; (§ 1013.4(j)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12K | Liability between residual and realized values; (§ 1013.4(k)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12L | Right of appraisal; (§ 1013.4(l)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12M | M. For open-end leases: | |||
12Mi | The rent and other charges paid by lessee; (§ 1013.4(m)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Mii | Liability at end of lease term based on residual value and any excess liability; (§§ 1013.4(m) and (m)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Miii | Mutually agreeable final adjustment. (§ 1013.4(m)(3)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12N | Fees and taxes; (§ 1013.4(n)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12O | Regarding insurance: | |||
12Oi | Disclosure of the types and amounts of insurance that the lessee is required to have; (§ 1013.4(o)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Oii | If the lessor provides insurance, are the types, amounts, and costs disclosed? (§ 1013.4(o)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12P | Warranties or guarantees; (§ 1013.4 (p)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Q | Penalties and other charges for late payments, delinquency, or default; (§ 1013.4(q)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12R | Security interest other than a security deposit; (§ 1013.4(r)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12S | Regarding any information on rates: | |||
12Si | Does the lessor use the term "annual percentage rate," "annual lease rate," or any equivalent term in the lease disclosure? (§ 1013.4(s)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
12Sii | If so, does the statement "this percentage may not measure the overall cost of financing this lease" accompany the rate? (§ 1013.4(s)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
13 | Are disclosures given to lessees when they "renegotiate" or "extend" their leases? (§ 1013.5) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14 | Does the credit union advertise its leasing program? NOTE: If not, skip to end. If so, answer the questions below. |
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14A | Do the advertisements include terms that are usually and customarily available? (§ 1013.7(a)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14B | Are the advertisements clear and conspicuous? (§ 1013.7(b)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14Bi | Are any affirmative or negative references to a charge that is part of the disclosure required under paragraph (d)(2)(ii) less prominent than the disclosure (except for the statement of a periodic payment? (§ 1013.7(b)(1)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14Bii | Are advertised lease rates less prominent than any disclosure required by § 1013.4 (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) (except the notice of the limitations on rate)? (§ 1013.7(b)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14C | Do catalogs, multiple page advertisements and electronic advertisements comply with the page reference requirements? (§ 1013.7(c)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14D | If any triggering terms are used, are all the following disclosures made? (§ 1013.7(d)(2)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
14Di | That the transaction advertised is a lease; | |||
14Dii | The total amount due prior to or at consummation or by delivery, if delivery occurs after consummation; | |||
14Diii | The number, amounts, and due dates or periods of scheduled payments under the lease; | |||
14Div | Whether or not a security deposit is required; | |||
14Dv | A statement that an extra charge may be imposed at the end of the lease term where the lessee’s liability is based on the difference between the residual value of the leased property and its realized value at the end of the lease term. | |||
15 | Do merchandise tags that use triggering terms refer to a sign or display containing the additional required disclosures? (§ 1013.7(e)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
16 | Do television or radio advertisements that do not contain the additional information required by § 1013.4(d) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) direct consumers to a toll-free number or written advertisement for additional information when triggering terms are used? (§ 1013.7(f)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
16A | Is the toll-free number listed along with a reference that the number may be used by the consumer to obtain the information? (§ 1013.7(f)(1)(i)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
16B | Does the written advertisement in general circulation in the community served by the radio or TV station include the name and date of the publication, and is it published beginning at least three days before and ending at least 10 days after broadcast? (§ 1013.7(f)(1)(ii)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
16C | Was the toll-free telephone number available for at least 10 days, beginning on the date of broadcast? (§ 1013.7(f)(2)(i)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
16D | Does the lessor provide the information required by paragraph (d)(2) via the toll-free number orally, or in writing upon request? (§ 1013.7(f)(2)(ii)) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) | |||
17 | Are records and other evidence of compliance retained for at least two (2) years as required by the CLA? (§ 1013.8) (opens new window) (You will be leaving NCUA.gov and accessing a non-NCUA website. We encourage you to read the NCUA's exit link policies. (opens new page).) |