What is the Consumer Leasing Act?

The Consumer Leasing Act is a law in Texas that governs the leasing of personal, family, or household items. This law provides protection to consumers who enter into leasing agreements by establishing certain disclosure requirements and setting certain limitations on the amount of fees that can be charged. The law applies to consumer leases made in Texas for a period of four months or more. Under the Consumer Leasing Act, the lessor must provide the consumer with a written disclosure statement detailing the item being leased, the total cost of the lease, the amount of the payment, the number of payments, and other important details of the lease agreement. Additionally, a lessee cannot be charged fees that are more than 3% of the total cost of the lease. This applies to late payment fees, collection costs, and other miscellaneous fees. The Consumer Leasing Act also gives consumers certain cancellation rights. Within three days of signing a lease, a consumer can cancel the lease for any reason without penalty. However, this cancellation period can be shortened by the leasing company, with certain restrictions. Therefore, the Consumer Leasing Act in Texas protects consumers who enter into consumer leases by establishing certain disclosure requirements and limiting the amount of fees that can be charged. This law ensures that consumers are not taken advantage of and that their rights as lessees are protected.

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What is the Consumer Leasing Act?

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