Certified Regulatory Compliance Manager (CRCM) — Question 102

When must disclosures on consumer leasing transactions subject to Regulation M be made?

Answer options

• A. At the time of the application
• B. Before the consummation of the lease
• C. Before the first payment due under the lease
• D. Within 10 days after consummation of the lease

Correct answer: B

Explanation

The correct answer is B because Regulation M requires that disclosures be made before the lease is finalized to ensure that consumers are fully informed prior to entering into the agreement. Answers A and C are incorrect as they suggest disclosures occur too early or too late, while answer D is not compliant with the regulation's timing requirements.