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Exam CRCM topic 1 question 105 discussion

Actual exam question from ABA's CRCM
Question #: 105
Topic #: 1
[All CRCM Questions]

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

  • 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
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Suggested Answer: B 🗳️

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Cam22
5 months, 4 weeks ago
Selected Answer: B
The correct answer is B. Before the consummation of the lease. Regulation M, which implements the Consumer Leasing Act as part of the Truth in Lending Act, requires that disclosures for consumer leasing transactions be made before the consummation of the lease. This ensures that consumers are fully informed about the terms and conditions, including costs and other key features of the lease, before they are legally bound by the agreement.
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