The Board of Governors of the Federal Reserve System (“FRB”) proposed amending Regulation M, which was issued to implement the Consumer Leasing Act (“CLA”). The CLA requires “meaningful disclosure of the terms of personal property leases for personal, family, or household use.”
The CLA transferred rulemaking authority from the FRB to the CFPB. However, the FRB maintains authority to issue rules for “motor vehicle dealers that are predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, and are otherwise not subject to the [CFPB]’s regulatory authority.” The FRB proposal revises both Regulation M and accompanying Official Staff Commentary in order to reflect the change in the scope of Regulation M.
Interested parties must submit comments to the FRB by March 5, 2018.