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September 09, 2014
Regs Z, M exemption thresholds rise in January
The threshold for transactions exempt from Regulations Z and M, which implement the Truth in Lending Act and Consumer Leasing Act, will rise to $54,600 Jan. 1, CFPB and the Federal Reserve Board announced Tuesday.
The exemption threshold, up $1,100 from this year's, will apply to most consumer credit transactions and consumer leases. Private education loans and loans secured by real property, such as mortgages, are subject to Reg Z, however, regardless of the amount of the loan.
The revised thresholds reflect the annual percentage increase in the consumer price index as of this June 1. The thresholds are adjusted annually by the annual percentage increase in the CPI for Urban Wage Earners and Clerical Workers.
These rules were transferred to CFPB by the Dodd-Frank Act, but the Fed is in charge of rules for certain motor vehicle dealers.
Notices of both reg changes will be published soon in the Federal Register.
The exemption threshold, up $1,100 from this year's, will apply to most consumer credit transactions and consumer leases. Private education loans and loans secured by real property, such as mortgages, are subject to Reg Z, however, regardless of the amount of the loan.
The revised thresholds reflect the annual percentage increase in the consumer price index as of this June 1. The thresholds are adjusted annually by the annual percentage increase in the CPI for Urban Wage Earners and Clerical Workers.
These rules were transferred to CFPB by the Dodd-Frank Act, but the Fed is in charge of rules for certain motor vehicle dealers.
Notices of both reg changes will be published soon in the Federal Register.
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