Reg Z (R-1399) NPRM Press Release

Printer Version - Board of Governors of the Federal Reserve System

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Press Release

Release Date: December 13, 2010
For immediate release
The Federal Reserve Board on Monday proposed two rules that would expand the coverage of
consumer protection regulations to credit transactions and leases of higher dollar amounts.
The proposed rules would amend Regulation Z (Truth in Lending) and Regulation M (Consumer
Leasing) to implement a provision of the Dodd-Frank Wall Street Reform and Consumer Protection
Act (Dodd-Frank Act). Effective July 21, 2011, the Dodd-Frank Act requires that the protections of
the Truth in Lending Act (TILA) and the Consumer Leasing Act (CLA) apply to consumer credit
transactions and consumer leases up to $50,000, compared with $25,000 currently. This amount will
be adjusted annually to reflect any increase in the Consumer Price Index.
TILA requires creditors to disclose key terms of consumer loans and prohibits creditors from
engaging in certain practices with respect to those loans. Currently, consumer loans of more than
$25,000 are generally exempt from TILA. However, private education loans and loans secured by
real property (such as mortgages) are subject to TILA regardless of the amount of the loan.
The CLA requires lessors to provide consumers with disclosures regarding the cost and other terms
of personal property leases. An automobile lease is the most common type of consumer lease
covered by the CLA. Currently, a lease is exempt from the CLA if the consumer's total obligation
exceeds $25,000.
The notices that will be published in the Federal Register are attached. Comments on the proposals
must be submitted by the later of 30 days after publication in the Federal Register or February 1,
2011.
Regulation Z (150 KB PDF)
Regulation M (119 KB PDF)

http://www.federalreserve.gov/newsevents/press/bcreg/20101213a.htm

12/14/2010