It’s no secret that car leases have become increasingly popular over the years. Consumers are drawn to their low up-front costs, as well as the relative ease in which they can switch out their vehicles for newer models. But with such a large market for leasing and so many dealerships getting involved, it’s even more important for consumers to know and understand the laws that are in place to protect them.
The Consumer Leasing Act is just one example of how consumers are protected from illegal fees in car leases. Created in 1978, this law gives consumers the right to know the specific terms and conditions of their lease agreements before signing any contracts. This includes information such as annual percentage rates, allowable termination alternatives, and purchase options.
The Consumer Leasing Act also bans the collection of deceptive fees from buyers who exercise a purchase option at the end of the lease. Before this law went into effect, it was a common practice for dealerships to add on additional collection fees that weren’t detailed in the initial contract. This would mean that consumers would be blindsided with extra charges at the end of their lease, forcing them to pay money they weren’t expecting.
The Consumer Leasing Act attempts to put an end to this practice by making it illegal for dealerships to charge or collect these hidden fees. This ensures that consumers know exactly what they’re going to pay if they decide to purchase a leased car at the end of their lease agreement. Consumers are also given the right to recoup any additional fees that were collected in violation of the Consumer Leasing Act.
The laws created by the Consumer Leasing Act are essential for protecting consumers from illegal fees in car leases. By having clear and transparent leasing agreements, consumers are better informed about their purchase options and have a better idea of what to expect. Armed with this information, consumers can make the best decision for their needs, while also avoiding any unwanted surprises.
If you have been quoted illegal or unexpected dealer fees or other purchase fees that are not covered in your lease, do not hesitate to contact us at info@pkglegal.com or at (561) 726-8444 for a free evaluation of your claim.