The Consumer Financial Protection Bureau (CFPB) and the Federal Reserve have updated the dollar thresholds for the applicability of Truth in Lending (Regulation Z) and Consumer Leasing (Regulation M) rules. Starting in 2025, these regulations will apply to consumer credit transactions and leases valued at $71,900 or less, reflecting a 3.4% increase based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It is important to note that private education loans and loans secured by real estate, such as mortgages, will still be governed by Regulation Z, regardless of the loan amount. Additionally, the CFPB clarified that pay-in-four buy now, pay later (BNPL) loans fall under Regulation Z as they are similar to credit cards. This regulation mandates lenders to disclose interest rates and assess borrowers' repayment abilities, ensuring transparency and consumer protection in lending practices.
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