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

The Federal Reserve Board and the Consumer Financial Protection Bureau have recently revealed the dollar thresholds that will determine whether certain consumer lease and credit transactions in 2024 will be subject to certain Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) requirements.

According to the law, these thresholds are required to be adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Transactions that fall under or are equal to the thresholds are subject to the regulations' protections.

Specifically, based on the CPI-W's annual percentage increase as of June 1, 2023, consumer credit transactions and consumer leases of $69,500 or lower in 2024 will be generally subject to Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing). However, private education loans and loans secured by real property, such as mortgages, are subject to Regulation Z (Truth in Lending) regardless of the loan's amount.

Federal Register notice: Consumer Leasing (Regulation M) (PDF)

Federal Register notice: Truth in Lending (Regulation Z) (PDF)

By Anita Johnson-Brown

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