The agencies set the new threshold based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which rose 2.1 percent as of June 1, 2025. The adjustment means that Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) will generally apply to consumer credit transactions and consumer leases of $73,400 or less in 2026.
Federal law requires the agencies to adjust these dollar thresholds annually to account for inflation, ensuring that consumer protections keep pace with economic changes. Transactions at or below the thresholds are subject to the full protections of both regulations, which mandate disclosure requirements and other consumer safeguards for credit and leasing arrangements.
The threshold adjustment affects the scope of regulatory coverage but includes important exceptions. Private education loans and loans secured by real property, such as mortgages, remain subject to Regulation Z regardless of the loan amount, ensuring these significant financial products maintain full regulatory oversight.
The annual threshold adjustments reflect the agencies' ongoing implementation of federal consumer financial law, which aims to ensure transparency and fairness in consumer credit markets. The CFPB has consistently emphasized the importance of maintaining robust disclosure requirements as lending practices evolve.
This routine adjustment continues the agencies' coordinated approach to consumer financial protection, with both the Federal Reserve and CFPB working together to implement Truth in Lending requirements that have been a cornerstone of consumer credit regulation for decades.