CFPB sets 2016 TILA, consumer leasing thresholds

December 8, 2015

WASHINGTON (12/8/15)--Dollar thresholds for Regulation Z (Truth in Lending Act) and Regulation M (Consumer Leasing Act) exemptions for 2016 remain unchanged from 2015 levels, the Consumer Financial Protection Bureau (CFPB) and Federal Reserve board announced. The thresholds will apply for determining except consumer credit and lease transactions in 2016.

Protections of the Truth in Lending Act and the Consumer Leasing Act will apply to consumer credit transactions and consumer leases of $54,600 or less in 2016, the same thresholds that applied in 2015.

However, private education loans and loans secured by real property (such as mortgages) are subject to the Truth in Lending Act regardless of the amount of the loan, according to the CFPB.

The Dodd-Frank Act requires that the thresholds are adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Federal Reserve Board and the CFPB will not adjust this exemption threshold from the prior year.

The 2016 thresholds are based on the CPI-W as of June 1.