The FRB issued two rules that will increase the threshold amounts for coverage under Regulation M and Regulation Z from $25,000 to $50,000. Under the new rules, which implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, consumer credit transactions and consumer leases with contractual obligations up to $50,000 will be covered by Regulations M and Z. The rules are effective on July 21, 2011, and, beginning in 2012, the $50,000 threshold will be adjusted annually for inflation by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Click here for the Regulation M rule and here for the Regulation Z rule.
Alert April 05, 2011