The Federal Reserve and Consumer Financial Protection Bureau today 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.
In related news, the Fed, CFPB and the Office of the Comptroller of the Currency announced the 2025 threshold for higher-priced mortgage loans that are subject to special appraisal requirements will increase from $32,400 to $33,500. The amount is based on the CPI-W.