CONSUMER LEASING ACT FAQ

The consumer leasing act applies to leases for items of personal property where the lease is in excess of 4 months and the item is leased for personal, family or household purposes.

No, the consumer leasing act does not cover real estate. The act applies to personal property, like vehicles, appliances or other items.

Yes. The total lease obligation must be $50,000 or less. 

The item must start out as a lease, but if you later purchased it, then the act may apply.

No. That is really the point of the act. The consumer is entitled to have the lease terms disclosed. 

One example that I see occurs in vehicle leases where the customer considers buying the vehicle. There is an option to purchase a vehicle at the termination of the lease. That lease end purchase option should have a price that you’d pay to buy the vehicle. Some dealerships add fees or revise the lease end option purchase price in some other fashion – after the lease has been entered. This might violate the act.

Well, that can get to be an involved answer, but you are entitled to actual damages that you incurred.  You are also entitled to 25% of your payments, up to a maximum of $2,000 (and a minimum of $200). Very importantly, the lessor must pay your attorney fees for successful claims. Since the lessor must pay your fees, you don’t pay my office for legal representation of your consumer leasing act claim. 

Under the consumer leasing act, you don’t have to submit your dispute to arbitration, but the lease terms could require arbitration.

Maybe. The simple answer is that you can present claims under the consumer leasing act as a class action, but this gets complicated as there may be language limiting or restricting your rights.

Contact Ronald S. Weiss to discuss the specifics of your situation. Since the lessor has to pay attorney fees, it makes senses to have an attorney on your side.