Federal Reserve Raises Truth in Lending and Consumer Leasing Thresholds to $51,800 beginning January 1, 2012

The Federal Reserve Board (FRB) recently raised the dollar threshold for consumer credit and lease transactions under Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing), effective July 21, 2011, from $25,000 to $50,000 pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The FRB announced that beginning January 1, 2012, the threshold will again be raised so that the protections of the Truth in Lending Act and the Consumer Leasing Act generally will apply to consumer credit transactions and consumer leases of $51,800 or less. These annual adjustments are required by statute and reflect the annual percentage increase in the consumer price index that was in effect as of June 1, 2011.

For more information: Regulation Z Final Rule and Regulation M Final Rule.

Visit the NADA sections on Regulation Z and Regulation M.