Loans or leases written to consumers for up to $50,000 will be subject to protections under the Truth in Lending Act, up from $25,000, according to a new rule announced by the Federal Reserve Monday. The raised exemption threshold will go into effect July 21, the same day the Consumer Financial Protection Bureau is set to launch. Under the Dodd-Frank Act, the Fed was required to set a new threshold for exempt loans in order expand the protections of TILA. TILA requires lenders disclose key terms of consumer loans, and it prohibits lenders from engaging in certain practices. Currently, any loans of more than $25,000 are exempt from TILA, but loans secured by mortgages or student loans do fall under its juridiction, regardless of the amount. Beginning Jan. 1, the new $50,000 threshold will be adjusted annually based on any increases to the consumer price index for urban wage earners and clerical workers, or the CPI-W, which is published by the Labor Department‘s Bureau of Labor Statistics. Write to Jon Prior.

Most Popular Articles

Realtors expect these to be the 10 hottest housing markets for the next 3-5 years

Here are the 10 housing markets that the National Association of Realtors expects to the hottest in the nation in the next three to five years.

Dec 11, 2019 By

Latest Articles

Gateway First Bank makes two key hires

Gateway First Bank made back-to-back announcements this week regarding two key hires. The bank welcomed Joell Maddox as director of treasury services and Thomas Ramm joined as chief investment officer.

Dec 12, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please