Regulation M - What Leases Are Covered

• Only applies to "consumer leases." This means leases by individuals for personal, family or household purposes which exceed 4 months in length. Regulation M does not apply to leases for agricultural, business or commercial purposes or leases made to an organization.
• Only applies to leases with a total contractual obligation equal to or less than $25,000. That's right, if you leased an expensive vehicle for a term long enough to get your lease obligation over $25,000, you are technically out of luck under Regulation M. Nonetheless, it is unlikely that leasing companies will develop two sets of lease forms - one that complies with Regulation M for under-$25,000 leases and one that does not for more expensive leases. Accordingly, most, if not all, consumers should benefit by the new rules. You also may be protected if your state has its own legislation.