Regs Z, M exemption thresholds for consumer credit, leases unchanged in 2021

Dollar thresholds for transactions exempt from consumer credit and lease rules will remain unchanged at $58,300 in 2021, the Federal Reserve and Consumer Financial Protection Bureau (CFPB) announced Tuesday.

The exemptions are provided under Regulation Z (Truth in Lending Act, or TILA) Regulation M (Consumer Leasing Act, or CLA), which apply consumer protection requirements for consumer credit and lease transactions, respectively. Private education loans and loans secured by real property, such as mortgages, are subject to TILA regardless of the amount of the loan, the agencies noted.

The Regs Z and M exemption thresholds are set pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) amendments to TILA and CLA that require adjusting the thresholds annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Agencies Announce Dollar Thresholds in Regulations Z and M for Exempt Consumer Credit and Lease Transactions

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