The Consumer Financial Protection Bureau (CFPB) along with the Federal Reserve Board set the dollar thresholds for Regulation Z and Regulation M for determining exempt consumer credit and lease transactions in 2018.
For 2018, the protections will apply to consumer credit transactions and consumer leases of $55,800 or less in 2018.
Regulation Z relates to the Truth in Lending Act, while Regulation M relates to the Consumer Leasing Act. They are required by Dodd-Frank to be adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Loans secured by real property (such as mortgages), as well as private education loans, are subject to the Truth in Lending Act regardless of the amount of the loan.
The Federal Reserve Board and the CFPB will not adjust this exemption threshold from the prior year if there is no annual percentage increase in the CPI-W. In years after the exemption threshold was not adjusted, the threshold is calculated by applying the annual percentage change in CPI-W to the amount that would have resulted if the decreases and any subsequent increases in the CPI-W had been considered. Transactions at or below the thresholds are subject to the protections of the two regulations.