Agencies announce dollar thresholds for applicability of truth in lending and consumer leasing rules for consumer credit and lease transactions

The Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board (FED) have announced amendments to Regulation M (Consumer Leasing Regulation) and Regulation Z (Truth in Lending Regulation) to adjust the thresholds indicating whether or not a lease transaction or credit agreement falls under the corresponding regulations and is thus subject to enhanced disclosure and marketing obligations or restrictions and extended customer privileges as to the termination of contracts.
In detail, the agencies set the threshold for „determining exempt consumer credit and lease transactions in 2024“ at $69,500. This means that the noted regulations do not apply if the $ amounts in consumer loan or leasing contracts do not exceed $69,500. This limit does not apply, however, to private education loans and loans secured by real property such as mortgages.
The thresholds are adjusted on a yearly basis to reflect changes in the consumer price index. The now set thresholds apply from January 1, 2024 and remain in place until replaced by another adjustment.