Regs Z, M exemption thresholds for consumer credit and lease transactions rise $5,400 in 2023

Consumer credit and lease transactions involving $66,400 or less are exempt in 2023 from Truth in Lending Act (Regulation Z) and Consumer Leasing Act (Regulation M) requirements, according to releases Thursday by the Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board.

That exemption threshold is up $5,400 from the 2022 threshold ($61,000) based on a statutorily required review of the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, the agencies said.

They also noted, however, that private education loans and loans secured by real property, such as mortgages, are subject to Regulation Z regardless of the amount of the loan.

The revised Regs Z and M thresholds will be published in the Federal Register as final rules.

Reg Z final rule

Reg M final rule