Fed, CFPB raise dollar thresholds for exempt transactions under Regulations M, Z

126px-US-FederalReserveSystem-Seal.svg_3The Federal Reserve and CFPB announced on Tuesday that they will raise the dollar thresholds in Regulations Z and M for exempt consumer credit and lease transactions under the Truth in Lending Act (TILA) and Consumer Leasing Act.

The adjustments—based on the annual percentage increase in the consumer price index on June 1—will take effect on Jan. 1.

Transactions that fall at or below the thresholds are subject to the protections of the rules, both of which require lenders to disclose all of the details of a given loan to increase transparency for the consumer.

The protections will generally apply to consumer credit transactions and leases of $54,500 or less in 2015—a $1,100 increase. Private education loans and mortgages, however, are subject to TILA regardless of the loan amount.

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