The CFPB and Federal Reserve have finalized joint rules that raise the 2026 dollar coverage thresholds under the Truth in Lending Act (Regulation Z) and the Consumer Leasing Act (Regulation M) to $73,400.
What changed for 2026
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The exemption threshold for most consumer credit and lease transactions increases from $71,900 (2025 level) to $73,400 for calendar year 2026.
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Transactions at or below $73,400 are generally covered by Regulation Z (credit) and Regulation M (leases) in 2026; transactions above that amount are generally exempt, subject to important exceptions.
Key exceptions that remain covered
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Credit secured by a consumer’s principal dwelling (e.g., most mortgages and home equity loans) is subject to Truth in Lending requirements regardless of the loan amount.
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Private education loans also remain covered by Regulation Z regardless of dollar amount, so the new threshold does not create an exemption for large student loans.
Basis and timing of the adjustment
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The 2026 thresholds are based on a 2.1% annual increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W) measured as of June 1, 2025.
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The revised $73,400 threshold is effective January 1, 2026, and applies to covered consumer credit and lease transactions consummated on or after that date.
Practical compliance impact
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Creditors, lessors, and service providers should update screening logic, documentation triggers, and compliance systems to use the $73,400 threshold for determining Regulation Z and M coverage starting January 1, 2026.
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Staff training and procedures should highlight how the threshold interacts with exceptions (like mortgages and private education loans) that remain covered regardless of amount.
