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Question 110

Records regarding compliance with Regulation M must be kept for how long?

    Correct Answer: B

    Regulation M, part of the Consumer Leasing Act, mandates that lessors retain records demonstrating compliance with its requirements for a minimum of two years after the disclosures are made to the lessee. This retention period ensures that evidence of compliance is available for verification for an adequate period following the lease disclosures.

Discussion
Cam22Option: B

Regulation M, which governs the leasing of personal property under the Consumer Leasing Act in the United States, stipulates various requirements for lessors, including disclosures to lessees, advertising guidelines, and record-keeping practices. According to Regulation M, lessors are required to retain evidence of compliance with the regulation, including copies of lease agreements and related disclosures, for a minimum of two years after the date disclosures are made to the lessee.