Handling Incomplete Lease Information

B

The Consumer Leasing Act (CLA) requires lessors to provide specific disclosures to consumers in a clear and conspicuous manner before the consummation of a lease. However, there may be instances where the lessor, such as a bank, does not have all the necessary information to provide all of the required disclosures at the time of the consummation.

In such situations, the bank may attempt to obtain the missing information from the consumer or other sources. If the bank is still unable to obtain the information after making reasonable efforts to do so, it must make a decision on how to proceed.

Option A: Omit the unknown disclosures The bank may choose to omit the unknown disclosures if it has made reasonable efforts to obtain the missing information and is still unable to do so. However, this option may not be advisable since it could lead to noncompliance with the CLA and potential legal and reputational risks for the bank.

Option B: Estimate the amounts and note that the information is estimated The bank may estimate the missing information based on reasonable assumptions and note that the information is estimated. This option is generally permissible under the CLA as long as the estimates are based on reasonable assumptions and are disclosed to the consumer in a clear and conspicuous manner.

Option C: Delay consummation of the transaction until the information is ascertained The bank may also choose to delay the consummation of the transaction until the missing information is obtained. This option may be preferable to the other options since it ensures that all required disclosures are provided accurately and completely. However, this may not always be practical or feasible.

Option D: Estimate the information based on averages of all other leasing transactions the bank has made within the last six months Estimating the missing information based on averages of other leasing transactions the bank has made within the last six months may not be a reliable or accurate method of estimating the missing information. Therefore, this option is not recommended.

In summary, the bank may choose to estimate the missing information and note that the information is estimated, or delay consummation of the transaction until the missing information is obtained, after making reasonable efforts to obtain the missing information from the consumer or other sources.