WASHINGTON - The Federal Reserve Board is working on a new disclosure form that auto leasing companies would be required to give consumers.
The Fed, which controls leasing disclosures under its Regulation M, is trying to make it easier for consumers to compare the costs of leasing with those of financing a car purchase. Banks would be required to follow the same rules.
On Thursday, Fed Governor Lawrence Lindsey noted the increasing popularity of leasing over financing, and explained that many consumers are confused by the choice.
Speaking at a meeting of the Fed's Consumer Advisory Council, Mr. Lindsey said the new disclosure form must be simple.
"We're not going to put a regulation out the door unless real people understand it," he said, adding that the designation excludes lawyers and economists.
However, David C. Fynn, regulatory risk manager at National City Corp. and a member of the Fed's consumer panel, said the two options are too different to be compared on a form.
"It's a somewhat futile exercise to compare a purchase with a lease - they are fundamentally different," Mr. Fynn said.