WASHINGTON, D.C. — Just before Thanksgiving, the Federal
Reserve Board and the Consumer Financial Protection Bureau announced increases
in the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M
(Consumer Leasing) for exempt consumer credit and lease transactions.

Officials said these increases are consistent with the
Dodd-Frank Wall Street Reform and Consumer Protection Act amendments to the
Truth in Lending Act and the Consumer Leasing Act, to adjust these thresholds
annually by the annual percentage increase in the Consumer Price Index for
Urban Wage Earners and Clerical Workers.

The agencies indicated transactions at or below the
thresholds such as used- or new-vehicle deals are subject to the protections of
the regulations.

The Fed and the CFPB noted the adjustments to the thresholds
reflect the annual percentage increase in the consumer price index as of June 1
and will take effect on Jan. 1.

Based on the adjustments announced last week, the
protections of the Truth in Lending Act and the Consumer Leasing Act generally
will apply to consumer credit transactions and consumer leases of $53,000 or
less in 2013, according to officials.

"However, private education loans and loans secured by real
property (such as mortgages) are subject to the Truth in Lending Act regardless
of the amount of the loan," the agencies said.

Although the Dodd-Frank Act generally transferred rulemaking
authority under the Truth in Lending Act and the Consumer Leasing Act to the
CFPB, the Fed retains authority to issue rules for certain motor vehicle
dealers.

"Therefore, the agencies are issuing these adjustments
jointly," officials said.

In addition, the CFPB is separately adjusting the dollar
amount that triggers additional protections for certain home mortgages under
the Home Ownership and Equity Protection Act of 1994 (HOEPA), as required by
statute.

Consistent with the increase in the consumer price index,
officials said the dollar amount of the HOEPA fee trigger will increase to $625
for 2013.

The notices that will be published in the Federal Register
are through the following links:

—Regulation M Exemption Threshold Adjustment

—Regulation Z Exemption Threshold Adjustment

—Regulation Z HOEPA Threshold Adjustment


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