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Simple English definitions for legal terms
Consumer Leasing Act
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A quick definition of Consumer Leasing Act:
The Consumer Leasing Act (CLA) is a law that helps protect people who lease things like cars or furniture for personal use. It makes sure that the lease agreement is clear and easy to understand, and that the lease company can't trick or mislead the person leasing. The law only applies to leases that are longer than four months and cost less than $50,000. The goal of the law is to help people who might not have a lot of experience or resources to protect themselves from unfair lease terms. The law requires the lease agreement to include important details like how much the rent costs, when payments are due, and how the lease can be ended. The lease company also has to be honest in their advertisements about the total cost of the lease.
A more thorough explanation:
The Consumer Leasing Act (CLA) is a law that was passed in 1976 as part of the Truth in Lending Act (TILA). Its purpose is to protect people who lease personal property, such as cars or appliances, from being misled or deceived by lessors.
The CLA only applies to leases that are for personal use, are longer than four months, and cost less than or equal to $50,000. It does not apply to commercial or business leases because those lessees are assumed to have more resources and experience to ensure fair lease terms.
The CLA requires that every covered lease must contain specific details about the rent costs, payment dates, other costs, termination details, and any warranties on the property. Lessors are also required to include many of the same details in lease advertisements to prevent misleading communication of the overall lease price.
For example, if you are leasing a car for personal use and the lease is longer than four months and costs less than $50,000, the lessor must provide you with a lease agreement that includes all of the required details. If the lessor advertises the lease in a newspaper or online, they must also include the required details in the advertisement.