Records regarding compliance with Regulation M must be kept for how long?
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A. B. C. D.B
The correct answer is (B) Two years after the disclosures are made.
Regulation M is a federal regulation that implements the consumer leasing provisions of the Truth in Lending Act (TILA). It aims to promote informed leasing transactions by requiring lessors to disclose important lease terms and costs to consumers.
As per the requirements of Regulation M, lessors must keep records of compliance for a specific period of time. These records should include disclosures, advertising, and other materials related to the lease transaction. The purpose of maintaining these records is to enable regulatory authorities to verify compliance with Regulation M.
According to the Federal Reserve, which oversees Regulation M, lessors must keep records of compliance for at least two years after the disclosures are made. This time period starts from the date the lessor provides the required disclosures to the lessee. The records must be retained in a form and manner that allows for their prompt and efficient retrieval.
It's important for lessors to comply with Regulation M's record-keeping requirements as failure to do so can result in regulatory sanctions, fines, and other penalties. Therefore, it's recommended that lessors maintain accurate and complete records of compliance with Regulation M for at least two years after the lease transaction.