Certified Regulatory Compliance Manager (CRCM) — Question 309

The act limited balloon payments in consumer leases and enabled consumers to compare lease terms with credit terms where appropriate. The act was implemented by Regulation M (Consumer Leasing). It requires disclosures to consumers before consummation of the lease agreement. This act is:

Answer options

• A. Consumer leasing act
• B. Risk disclosure act
• C. ALLL
• D. None of these

Correct answer: A

Explanation

The correct answer is A, the Consumer Leasing Act, which specifically addresses balloon payments and mandates disclosures in consumer leasing situations. Options B and C are not applicable as they refer to different regulations, and D is incorrect because there is indeed a valid act related to the question.