Agencies announce thresholds for consumer credit, upper-level mortgage loans

The Federal Reserve and Consumer Financial Protection Bureau recently announced the dollar thresholds used to determine whether certain consumer credit and lease transactions in 2025 are subject to certain protections under Regulation Z, which implements the Truth in Lending Act, and Regulation M, which implements the Consumer Leasing Act.

The agencies are required to adjust the thresholds annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W. Effective Jan. 1, 2025, will apply to consumer credit transactions and consumer leases of $71,900 or less, up from $69,500.