The Consumer Financial Protection Bureau (CFPB) and the Federal Reserve announced they were proposing changes to the thresholds for exempting certain consumer credit and lease transactions from TILA and the Consumer Leasing Act.
The Dodd-Frank Act requires that the exemption thresholds be adjusted annually for inflation based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The TILA and Consumer Leasing Act protections generally apply to consumer credit transactions and consumer leases at or below the thresholds. However, private education loans and loans secured by real property (such as mortgages) are subject to TILA regardless of the amount of the loan.
The CFPB generally has rulemaking authority under TILA and the Consumer Leasing Act, but the Fed retains authority to issue rules for certain motor vehicle dealers.
Comments will be due 30 days after the rule is published in the Federal Register.
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