U.S. Code » Title 15 » CHAPTER 41— CONSUMER CREDIT PROTECTION › SUBCHAPTER I— CONSUMER CREDIT COST DISCLOSURE › Part E— Consumer Leases

15 U.S.C. § 1667b

Lessee’s liability on expiration or termination of lease

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(a) Estimated residual value of property as basis; presumptions; action by lessor for excess liability; mutually agreeable final adjustment

Where the lessee’s liability on expiration of a consumer lease is based on the estimated residual value of the property such estimated residual value shall be a reasonable approximation of the anticipated actual fair market value of the property on lease expiration. There shall be a rebuttable presumption that the estimated residual value is unreasonable to the extent that the estimated residual value exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease. In addition, where the lessee has such liability on expiration of a consumer lease there shall be a rebuttable presumption that the lessor’s estimated residual value is not in good faith to the extent that the estimated residual value exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease and such lessor shall not collect from the lessee the amount of such excess liability on expiration of a consumer lease unless the lessor brings a successful action with respect to such excess liability. In all actions, the lessor shall pay the lessee’s reasonable attorney’s fees. The presumptions stated in this section shall not apply to the extent the excess of estimated over actual residual value is due to physical damage to the property beyond reasonable wear and use, or to excessive use, and the lease may set standards for such wear and use if such standards are not unreasonable. Nothing in this subsection shall preclude the right of a willing lessee to make any mutually agreeable final adjustment with respect to such excess residual liability, provided such an agreement is reached after termination of the lease.

(b) Penalties and charges for delinquency, default, or early termination

Penalties or other charges for delinquency, default, or early termination may be specified in the lease but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the delinquency, default, or early termination, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy.

(c) Independent professional appraisal of residual value of property at termination of lease; finality

If a lease has a residual value provision at the termination of the lease, the lessee may obtain at his expense, a professional appraisal of the leased property by an independent third party agreed to by both parties. Such appraisal shall be final and binding on the parties.

(Pub. L. 90–321, title I, § 183, as added Pub. L. 94–240, § 3, Mar. 23, 1976, 90 Stat. 259.)
Notes of Decisions
Cited in 23 cases, 1980–2010 · leading case: Marek v. Chesny, 473 U.S. 1 (1985).
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Marek v. Chesny, 473 U.S. 1 (1985). · cites it 2× “259 , 15 U. S. C. § 1667b(a). 15. Consumer Credit Protection Act, 84 Stat.”
Kelvin Highsmith v. Chrysler Credit Corp., 18 F.3d 434 (7th Cir. 1994). · cites it 4× “Villasenor makes the following similar allegations: 1) the early termination provision in his lease violates the Consumer Leasing Act under 15 U.S.C. § 1667b(b) (1988) (Count I); 2) the lease violates the disclosure requirements of the Consumer Leasing Act under 15 U.”
Stacey A. Williams v. Gen. Elec. Capital Auto Lease, Inc., 159 F.3d 266 (7th Cir. 1998). · cites it 2× “Second, they alleged that the early termination charges under the leases were unreasonable, in violation of 15 U.S.C. § 1667b(b), and that the lessee’s right under 15 U.”
Nazareth Gates v. John Collier, 616 F.2d 1268 (5th Cir. 1980). “V 1975); Consumer Leasing Act of 1976 § 3, 15 U.S.C.A. § 1667b (Supp.1977); Fair Credit Reporting Act § 601, 15 U.”
Miller v. Nissan Motor Acceptance Corp., 362 F.3d 209 (3d Cir. 2004). · cites it 4× “The Count I disclosure claim is referred to as an Applebaitm claim, which is a CLA disclosure claim brought under 15 U.S.C. § 1667b(a) named after our decision in Applebaum v.”
Kenny A. ex rel. Winn v. Perdue, 547 F.3d 1319 (11th Cir. 2008). · cites it 2× “§ 298 (b)-(d); Consumer Leasing Act, 15 U.S.C. § 1667b(a); Consumer Credit Protection Act, 15 U.”
United Nuclear Corp. v. Cannon, 564 F. Supp. 581 (D.R.I. 1983). “§ 1640 (a) (Truth in Lending Act); 15 U.S.C. § 1667b(a) (Consumer Leasing Act of 1976); 29 U.”
Demitropoulos v. Bank One Milwaukee, N.A., 915 F. Supp. 1399 (N.D. Ill. 1996). “1994), the Seventh Circuit held that a lessee who has not yet terminated a lease cannot state a valid claim under 15 U.S.C. § 1667b(b) challenging the reasonableness of an early termination charge.”
Wilson v. World Omni Leasing, Inc., 540 So. 2d 713 (Ala. 1989). “Wilson further contends that the provisions of the lease agreement, concerning the residual value as part of her liability at the lease termination, violated 15 U.S.C. § 1667b (a) (1982). Section 1667b(a) reads as follows: "(a) Where the lessee's liability on expiration of a…”
Ramos v. Lamm, 539 F. Supp. 730 (D. Colo. 1982). “§§ 206 , 407 Consumer Leasing Act, 15 U.S.C. § 1667b(a) Consumer Product Safety Act, 15 U.”
Baez v. Banc One Leasing Corp., 348 F.3d 972 (11th Cir. 2003). “DISCUSSION Baez first contends that the district court erred when it concluded that the early termination provision in Torres’s auto lease did not run afoul of § 183(b) of the Consumer Credit Protection Act, 15 U.S.C. § 1667b(b) (2003). The district court concluded that the…”
Highsmith v. Chrysler Credit Corp., 150 B.R. 997 (N.D. Ill. 1993). · cites it 2× “Under the Consumer Leasing Act, early termination charges must be reasonable “in light of the anticipated or actual harm caused by the delinquency, default, or early termination_” 15 U.S.C. § 1667b(b). Until the lease is terminated, the court has no means of determining what…”
Show all 23 citing cases →
15 U.S.C. § 1667b(a): 8 cases
Marek v. Chesny, 473 U.S. 1 (1985). “259 , 15 U. S. C. § 1667b(a). 15. Consumer Credit Protection Act, 84 Stat.”
Kenny A. ex rel. Winn v. Perdue, 547 F.3d 1319 (11th Cir. 2008). “§ 298 (b)-(d); Consumer Leasing Act, 15 U.S.C. § 1667b(a); Consumer Credit Protection Act, 15 U.”
United Nuclear Corp. v. Cannon, 564 F. Supp. 581 (D.R.I. 1983). “§ 1640 (a) (Truth in Lending Act); 15 U.S.C. § 1667b(a) (Consumer Leasing Act of 1976); 29 U.”
Ramos v. Lamm, 539 F. Supp. 730 (D. Colo. 1982). “§§ 206 , 407 Consumer Leasing Act, 15 U.S.C. § 1667b(a) Consumer Product Safety Act, 15 U.”
Gaydos v. Huntington Nat'l Bank, 941 F. Supp. 669 (N.D. Ohio 1996).
15 U.S.C. § 1667b(b): 12 cases
Kelvin Highsmith v. Chrysler Credit Corp., 18 F.3d 434 (7th Cir. 1994). “Villasenor makes the following similar allegations: 1) the early termination provision in his lease violates the Consumer Leasing Act under 15 U.S.C. § 1667b(b) (1988) (Count I); 2) the lease violates the disclosure requirements of the Consumer Leasing Act under 15 U.”
Stacey A. Williams v. Gen. Elec. Capital Auto Lease, Inc., 159 F.3d 266 (7th Cir. 1998). “Second, they alleged that the early termination charges under the leases were unreasonable, in violation of 15 U.S.C. § 1667b(b), and that the lessee’s right under 15 U.”
Miller v. Nissan Motor Acceptance Corp., 362 F.3d 209 (3d Cir. 2004). “The Count I disclosure claim is referred to as an Applebaitm claim, which is a CLA disclosure claim brought under 15 U.S.C. § 1667b(a) named after our decision in Applebaum v.”
Demitropoulos v. Bank One Milwaukee, N.A., 915 F. Supp. 1399 (N.D. Ill. 1996). “1994), the Seventh Circuit held that a lessee who has not yet terminated a lease cannot state a valid claim under 15 U.S.C. § 1667b(b) challenging the reasonableness of an early termination charge.”
Baez v. Banc One Leasing Corp., 348 F.3d 972 (11th Cir. 2003). “DISCUSSION Baez first contends that the district court erred when it concluded that the early termination provision in Torres’s auto lease did not run afoul of § 183(b) of the Consumer Credit Protection Act, 15 U.S.C. § 1667b(b) (2003). The district court concluded that the…”
15 U.S.C. § 1667b(e): 1 case
Stacey A. Williams v. Gen. Elec. Capital Auto Lease, Inc., 159 F.3d 266 (7th Cir. 1998). “Second, they alleged that the early termination charges under the leases were unreasonable, in violation of 15 U.S.C. § 1667b(b), and that the lessee’s right under 15 U.”
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