The government has launched a review of consumer leasing, saying it is concerned about poor disclosure, misleading marketing and high costs in the sector.Indefinite and short-term (under four months) leases are not covered by responsible lending rules, licensing requirements and other provisions of the consumer credit law.Yesterday, the assistant treasurer, Arthur Sinodinos, said the government was concerned that consumers were being disadvantaged by the use of unregulated leases.Sinodinos said in a media release: "There are cases where it appears that fringe lessors have targeted classes of consumers who are particularly vulnerable, such as where consumers are on Centrelink benefits, pensions or low incomes and have few or no other sources of finance."The chief executive of the Consumer Action Law Centre, Gerard Brody, said there was evidence that some lessors structured agreements to be short-term or indefinite as a way of avoiding the application of consumer credit law to their businesses.CALC has complained about consumer leases in the past, saying the real costs of contracts were often not disclosed. Consumers are quoted a weekly rate when they sign up for finance and are unaware of the total contract cost.Lessors use marketing terms such as "rent to buy" or "rent to own", creating an impression that the lessee will end up owning the goods"These are lease contracts, so customers are not buying or paying off the product," Brody said.Another problem is that consumers are led to believe that leases give them flexibility - that they will be able to return goods and update models. Brody said that, on the contrary, most contract terms were restrictive.CALC has campaigned against lessors having access to Centrepay, which is the government's direct bill-paying service for Centrelink clients, saying they use the service to secure priority payments.Sinodinos said Treasury would consult on the issue over the next six months.