Circular
Consumer Leasing; Truth In Lending
April 13, 1999
Circular No. 11148

Changes in Official Staff Commentaries to Regulations M and Z

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has announced changes in its official staff commentaries to Regulation M (Consumer Leasing) and Regulation Z (Truth in Lending).

The changes became effective March 31, 1999, but compliance is optional until March 31, 2000.

The revisions to the Consumer Leasing commentary provide guidance on disclosures for lease renegotiations and extensions, official fees and taxes, multiple-item leases, and advertisements.

The revisions to the Truth in Lending commentary provide guidance on the prohibition against the issuance of unsolicited credit cards and on calculating payment schedules involving private mortgage insurance. In addition, the revisions discuss credit sale transactions where down payments include cash and property used as a trade-in, and contain several technical amendments.

The amendments to these Official Staff Commentaries, as published in the Federal Register of April 6, is available as a PDF file (Reg M (pdf - 82kb) and Reg Z (pdf - 27kb)).