FRB and CFPB Announce Increase to Dollar Thresholds in Regulation Z and Regulation M

The Board of Governors of the Federal Reserve System ("FRB") and the Consumer Financial Protection Bureau ("CFPB") announced that they are jointly increasing the dollar thresholds in Regulation Z ("Truth in Lending") and Regulation M ("Consumer Leasing") for exempt consumer credit and lease transactions.

The adjustments to the thresholds reflect the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2013, and will take effect on January 1, 2014.

Based on these adjustments, the protections of the Truth in Lending and Consumer Leasing Acts generally will apply to consumer credit transactions and consumer leases of $53,500 or less in 2014, which is an increase of $500 from 2013. However, private education loans and loans secured by real property, such as mortgages, are subject to the Truth in Lending Act regardless of the amount of the loan.

See: Text of Regulation Z Final Rule; Text of Regulation M Final Rule; FRB Press Release.