Skip to main content

Agencies Set 2020 Thresholds on Consumer Credit Transactions

Nov 01, 2019
Photo credit: Getty Images/Liia Galimzianova

The Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board have posted the dollar thresholds in Regulation Z (Truth-in-Lending) and Regulation M (Consumer Leasing) that will apply when determining exempt consumer credit and lease transactions in 2020.
 
According to the agencies, the thresholds are adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Federal Reserve Board and the Bureau will not adjust this exemption threshold from the prior year.
 
Based on the annual percentage increase in the CPI-W as of June 1, 2019, the exemptions will apply on consumer credit transactions and consumer leases of $58,300 or less in 2020. However, private education loans and loans secured by real property–including mortgages–are subject to the Truth-in-Lending Act regardless of the amount of the loan.
 
Separately, the CFPB and the Federal Reserve were joined by the Office of the Comptroller of the Currency in announcing the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2020 will increase from $26,700 to $27,200. The threshold amount will be effective Jan. 1, 2020, and is based on the annual percentage increase in the CPI-W as of June 1, 2019.

 
About the author
Published
Nov 01, 2019
A Beat Without A Cop

Dems, former CFPB Director, those targeted in lawsuits weigh in on attempts to discontinue CFPB

We Don't Care About You

The signals that unplugging the CFPB sends

Mass Firings At CFPB Imminent, Filing Says

Unions representing CFPB employees said 95% of the Bureau's workforce could be cut by the weekend

Feb 14, 2025
CFPB’s Days Numbered?

‘This Spigot … Is Now Being Turned Off’ said Acting Administrator Vought

Treasury Secretary Scott Bessent Named CFPB Acting Director

Bessent says he will work to lower costs, accelerate economic growth

Trump Fires CFPB Director Chopra

Chopra posts a letter to X with his final statements