80 FR 73945 - Consumer Leasing (Regulation M)
FEDERAL RESERVE SYSTEM
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 80, Issue 228 (November 27, 2015)
BUREAU OF CONSUMER FINANCIAL PROTECTION
Federal Register Volume 80, Issue 228 (November 27, 2015)
| Page Range | 73945-73947 | |
| FR Document | 2015-30071 |
[Federal Register Volume 80, Number 228 (Friday, November 27, 2015)] [Rules and Regulations] [Pages 73945-73947] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-30071] ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Part 213 [Docket No. R-1519] RIN 7100 AE-35 BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1013 RIN 3170-AA06 Consumer Leasing (Regulation M) AGENCIES: Board of Governors of the Federal Reserve System (Board); and Bureau of Consumer Financial Protection (Bureau). [[Page 73946]] ACTION: Final rules, official interpretations and commentary. ----------------------------------------------------------------------- SUMMARY: The Board and the Bureau are publishing final rules amending the official interpretations and commentary for the agencies' regulations that implement the Consumer Leasing Act (CLA). The Dodd- Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the CLA by requiring that the dollar threshold for exempt consumer leases be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Board and Bureau will not adjust this exemption threshold from the prior year. Based on the annual percentage decrease in the CPI-W as of June 1, 2015, the exemption threshold will remain at $54,600 through December 31, 2016. Because the Dodd-Frank Act also requires similar adjustments in the Truth in Lending Act's threshold for exempt consumer credit transactions, the Board and the Bureau are making similar amendments to each of their respective regulations implementing the Truth in Lending Act elsewhere in this issue of the Federal Register. DATES: This final rule is effective January 1, 2016. FOR FURTHER INFORMATION CONTACT: Board: Vivian W. Wong, Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263- 4869. Bureau: James Wylie, Counsel, Office of Regulations, Bureau of Consumer Financial Protection, at (202) 435-7700. SUPPLEMENTARY INFORMATION: I. Background The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) increased the threshold in the Consumer Leasing Act (CLA) for exempt consumer leases from $25,000 to $50,000, effective July 21, 2011.\1\ In addition, the Dodd-Frank Act requires that this threshold be adjusted annually for inflation by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as published by the Bureau of Labor Statistics. In April 2011, the Board issued a final rule amending Regulation M (which implements the CLA) consistent with these provisions of the Dodd-Frank Act along with a similar final rule amending Regulation Z (which implements the Truth in Lending Act) (collectively, the Board Final Threshold Rules).\2\ --------------------------------------------------------------------------- \1\ Public Law 111-203 section 1100E, 124 Stat. 1376 (2010). \2\ 76 FR 18349 (Apr. 4, 2011); 76 FR 18354 (Apr. 4, 2011). --------------------------------------------------------------------------- Title X of the Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from the Board to the Bureau, effective July 21, 2011. In connection with this transfer of rulemaking authority, the Bureau issued its own Regulation M implementing the CLA in an interim final rule, 12 CFR part 1013 (Bureau Interim Final Rule).\3\ The Bureau Interim Final Rule substantially duplicated the Board's Regulation M, including the revisions to the threshold for exempt transactions made by the Board in April 2011. Although the Bureau has the authority to issue rules to implement the CLA for most entities, the Board retains authority to issue rules under the CLA for certain motor vehicle dealers covered by section 1029(a) of the Dodd-Frank Act, and the Board's Regulation M continues to apply to those entities.\4\ --------------------------------------------------------------------------- \3\ 76 FR 78500 (Dec. 19, 2011). \4\ Section 1029(a) of the Dodd-Frank Act states: ``Except as permitted in subsection (b), the Bureau may not exercise any rulemaking, supervisory, enforcement, or any other authority . . . over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the Dodd-Frank Act states: ``Subsection (a) shall not apply to any person, to the extent that such person (1) provides consumers with any services related to residential or commercial mortgages or self- financing transactions involving real property; (2) operates a line of business (A) that involves the extension of retail credit or retail leases involving motor vehicles; and (B) in which (i) the extension of retail credit or retail leases are provided directly to consumers; and (ii) the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or (3) offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.'' 12 U.S.C. 5519(b). --------------------------------------------------------------------------- Section 213.2(e)(1) of the Board's Regulation M and Sec. 1013.2(e)(1) of the Bureau's Regulation M, and their accompanying commentaries, provide that the exemption threshold will be adjusted annually effective January 1 of each year based on any annual percentage increase in the CPI-W that was in effect on the preceding June 1. Any increase in the threshold amount will be rounded to the nearest $100 increment. For example, if the annual percentage increase in the CPI-W would result in a $950 increase in the threshold amount, the threshold amount will be increased by $1,000. However, if the annual percentage increase in the CPI-W would result in a $949 increase in the threshold amount, the threshold amount will be increased by $900.\5\ As stated in the Board Final Threshold Rules, if there is no annual percentage increase in the CPI-W, the Board and Bureau will not adjust the exemption threshold from the prior year.\6\ --------------------------------------------------------------------------- \5\ See comments 2(e)-9 in Supplements I of 12 CFR part 213 and 12 CFR part 1013. \6\ 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (``[A]n annual period of deflation or no inflation would not require a change in the threshold amount.''). --------------------------------------------------------------------------- II. Adjustment and Commentary Revision Effective January 1, 2016, the exemption threshold amount remains at $54,600. This is based on the CPI-W in effect on June 1, 2015, which was reported on May 22, 2015. The Bureau of Labor Statistics publishes consumer-based indices monthly, but does not report a CPI change on June 1; adjustments are reported in the middle of the month. The CPI-W is a subset of the CPI-U index (based on all urban consumers) and represents approximately 28 percent of the U.S. population. Because the CPI-W reported on May 22, 2015 reflects a 0.8 percent decrease in the CPI-W from April 2014 to April 2015, the Board and the Bureau are not adjusting the exemption threshold amount. The Board and the Bureau are revising the commentaries to their respective regulations to add new comment 2(e)-9.vii to state that, from January 1, 2016 through December 31, 2016, the threshold amount is $54,600. These revisions are effective January 1, 2016. III. Administrative Law Matters Administrative Procedure Act Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Board and the Bureau find that notice and public comment are impracticable, unnecessary, or contrary to the public interest.\7\ The amendment in this notice is technical and applies the method previously set forth in the Board Final Threshold Rules.\8\ For these reasons, the Board and the Bureau have determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. Therefore, the amendments are adopted in final form. --------------------------------------------------------------------------- \7\ See 5 U.S.C. 553(b)(B). \8\ See supra note 6. --------------------------------------------------------------------------- Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) does not apply to a rulemaking where a [[Page 73947]] general notice of proposed rulemaking is not required.\9\ As noted previously, the agencies have determined that it is unnecessary to publish a general notice of proposed rulemaking for this joint final rule. Accordingly, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply. --------------------------------------------------------------------------- \9\ See 5 U.S.C. 603 and 604. --------------------------------------------------------------------------- Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,\10\ the agencies reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. --------------------------------------------------------------------------- \10\ 44 U.S.C. 3506; 5 CFR part 1320. --------------------------------------------------------------------------- List of Subjects 12 CFR Part 213 Advertising, Consumer leasing, Consumer protection, Federal Reserve System, Reporting and recordkeeping requirements. 12 CFR Part 1013 Advertising, Consumer leasing, Reporting and recordkeeping requirements. Board of Governors of the Federal Reserve System Text of Final Revisions For the reasons set forth in the preamble, the Board amends Regulation M, 12 CFR part 213, as set forth below: PART 213--CONSUMER LEASING (REGULATION M) 0 1. The authority citation for part 213 continues to read as follows: Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 1100E, 124 Stat. 1376. 0 2. In Supplement I to Part 213, under Section 213.2--Definitions, under 2(e) Consumer Lease, paragraph 9.vii is added to read as follows: Supplement I to Part 213--Official Staff Commentary to Regulation M * * * * * Section 213.2--Definitions * * * * * 2(e) Consumer Lease. 9. * * * vii. From January 1, 2016 through December 31, 2016, the threshold amount is $54,600. * * * * * Bureau of Consumer Financial Protection Authority and Issuance For the reasons set forth in the preamble, the Bureau amends Regulation M, 12 CFR part 1013, as set forth below: PART 1013--CONSUMER LEASING (REGULATION M) 0 3. The authority citation for part 1013 continues to read as follows: Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 1100E, 124 Stat. 1376. 0 4. In Supplement I to part 1013, under Section 1013.2--Definitions, under 2(e) Consumer Lease, paragraph 9.vii is added to read as follows: Supplement I to Part 1013--Official Interpretations * * * * * Section 1013.2--Definitions * * * * * 2(e) Consumer Lease. * * * . 9. * * * vii. From January 1, 2016 through December 31, 2016, the threshold amount is $54,600. * * * * * By order of the Board of Governors of the Federal Reserve System, November 18, 2015. Robert deV. Frierson, Secretary of the Board. Dated: September 22, 2015. Richard Cordray, Director, Bureau of Consumer Financial Protection. [FR Doc. 2015-30071 Filed 11-25-15; 8:45 am] BILLING CODE 4810-AM-P; 6210-01-P
![Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations 73945
for which a general notice of proposed Paragraph 34.203(b)(2) ■ 6. In Supplement I to part 1026, under
rulemaking was published.12 As 1. Threshold Amount. * * * Section 1026.35—Requirements for
discussed above, the OCC has iii. From January 1, 2016, through Higher-Priced Mortgage Loans, under
determined that the publication of a December 31, 2016, the threshold amount is paragraph 35(c)(2)(ii), paragraph
general notice of proposed rulemaking $25,500. 35(c)(2)(ii)–1.iii is added to read as
is unnecessary. * * * * * follows:
List of Subjects BOARD OF GOVERNORS OF THE Supplement I to Part 1026—Official
FEDERAL RESERVE SYSTEM Interpretations
12 CFR Part 34
Authority and Issuance * * * * *
Appraisal, Appraiser, Banks, Banking,
Consumer protection, Credit, Mortgages, For the reasons set forth in the Subpart E—Special Rules for Certain
National banks, Reporting and preamble, the Board amends Regulation Home Mortgage Transactions
recordkeeping requirements, Savings Z, 12 CFR part 226, as set forth below:
associations, Truth in lending. * * * * *
PART 226—TRUTH IN LENDING
12 CFR Part 226 Section 1026.35—Requirements for
(REGULATION Z)
Higher-Priced Mortgage Loans
Advertising, Appraisal, Appraiser,
Consumer protection, Credit, Federal ■ 3. The authority citation for part 226 * * * * *
Reserve System, Mortgages, Reporting continues to read as follows: 35(c) Appraisals
and recordkeeping requirements, Truth Authority: 12 U.S.C. 3806; 15 U.S.C. 1604,
in lending. 1637(c)(5), 1639(l), and 1639h; Pub. L. 111– * * * * *
24, section 2, 123 Stat. 1734; Pub. L. 111– 35(c)(2) Exemptions
12 CFR Part 1026
203, 124 Stat. 1376.
Advertising, Appraisal, Appraiser, * * * * *
Banking, Banks, Consumer protection, ■ 4. In Supplement I to part 226, under
Section 226.43—Appraisals for Higher- Paragraph 35(c)(2)(ii)
Credit, Credit unions, Mortgages,
National banks, Reporting and Risk Mortgage Loans, under paragraph 1. * * *
43(b)(2), paragraph 43(b)(2)–1.iii is iii. From January 1, 2016, through
recordkeeping requirements, Savings
added to read as follows: December 31, 2016, the threshold amount is
associations, Truth in lending. $25,500.
DEPARTMENT OF THE TREASURY Supplement I to Part 226—Official Staff * * * * *
Interpretations
Office of the Comptroller of the Dated: November 19, 2015.
Currency * * * * * Amy Friend,
Authority and Issuance Subpart E—Special Rules for Certain Senior Deputy Comptroller and Chief
Counsel.
For the reasons set forth in the Home Mortgage Transactions
By order of the Board of Governors of the
preamble, the OCC amends 12 CFR part * * * * * Federal Reserve System, acting through the
34 as set forth below: Secretary of the Board under delegated
Section 226.43—Appraisals for Higher-
authority, November 18, 2015.
PART 34—REAL ESTATE LENDING Risk Mortgage Loans
Robert deV. Frierson,
AND APPRAISALS * * * * * Secretary of the Board.
■ 1. The authority citation for part 34 43(b) Exemptions Dated: October 8, 2015.
continues to read as follows: Richard Cordray,
* * * * *
Authority: 12 U.S.C. 1 et seq., 25b, 29, 93a, Director, Bureau of Consumer Financial
371, 1463, 1464, 1465,1701j–3, 1828(o), 3331 Paragraph 43(b)(2) Protection.
et seq., 5101 et seq., 5412(b)(2)(B) and 15 1. * * * [FR Doc. 2015–30097 Filed 11–25–15; 8:45 am]
U.S.C. 1639h. iii. From January 1, 2016, through BILLING CODE 4810–33–P; 6210–01–P; 4810–AM–P
December 31, 2016, the threshold amount is
Subpart G—Appraisals for Higher- $25,500.
Priced Mortgage Loans FEDERAL RESERVE SYSTEM
* * * * *
■ 2. In Appendix C to Subpart G, under BUREAU OF CONSUMER FINANCIAL 12 CFR Part 213
Section 34.203—Appraisals for Higher- PROTECTION
Priced Mortgage Loans, paragraph [Docket No. R–1519]
34.203(b)(2)–1.iii is added to read as Authority and Issuance
RIN 7100 AE–35
follows: For the reasons set forth in the
Appendix C to Subpart G—OCC preamble, the Bureau amends BUREAU OF CONSUMER FINANCIAL
Interpretations Regulation Z, 12 CFR part 1026, as set PROTECTION
forth below:
* * * * * 12 CFR Part 1013
Section 34.203—Appraisals for Higher- PART 1026—TRUTH IN LENDING
mstockstill on DSK4VPTVN1PROD with RULES
(REGULATION Z) RIN 3170–AA06
Priced Mortgage Loans
* * * * * Consumer Leasing (Regulation M)
■ 5. The authority citation for part 1026
34.203(b) Exemptions continues to read as follows: AGENCIES: Board of Governors of the
* * * * * Authority: 12 U.S.C. 2601, 2603–2605, Federal Reserve System (Board); and
2607, 2609, 2617, 3353, 5511, 5512, 5532, Bureau of Consumer Financial
12 2 U.S.C. 1532. 5581; 15 U.S.C. 1601 et seq. Protection (Bureau).
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![73946 Federal Register / Vol. 80, No. 228 / Friday, November 27, 2015 / Rules and Regulations
ACTION: Final rules, official these provisions of the Dodd-Frank Act will be increased by $1,000. However, if
interpretations and commentary. along with a similar final rule amending the annual percentage increase in the
Regulation Z (which implements the CPI–W would result in a $949 increase
SUMMARY: The Board and the Bureau are Truth in Lending Act) (collectively, the in the threshold amount, the threshold
publishing final rules amending the Board Final Threshold Rules).2 amount will be increased by $900.5 As
official interpretations and commentary Title X of the Dodd-Frank Act stated in the Board Final Threshold
for the agencies’ regulations that transferred rulemaking authority for a Rules, if there is no annual percentage
implement the Consumer Leasing Act number of consumer financial increase in the CPI–W, the Board and
(CLA). The Dodd-Frank Wall Street protection laws from the Board to the Bureau will not adjust the exemption
Reform and Consumer Protection Act Bureau, effective July 21, 2011. In threshold from the prior year.6
(Dodd-Frank Act) amended the CLA by connection with this transfer of
requiring that the dollar threshold for II. Adjustment and Commentary
rulemaking authority, the Bureau issued
exempt consumer leases be adjusted Revision
its own Regulation M implementing the
annually by the annual percentage CLA in an interim final rule, 12 CFR Effective January 1, 2016, the
increase in the Consumer Price Index part 1013 (Bureau Interim Final Rule).3 exemption threshold amount remains at
for Urban Wage Earners and Clerical The Bureau Interim Final Rule $54,600. This is based on the CPI–W in
Workers (CPI–W). If there is no annual substantially duplicated the Board’s effect on June 1, 2015, which was
percentage increase in the CPI–W, the Regulation M, including the revisions to reported on May 22, 2015. The Bureau
Board and Bureau will not adjust this the threshold for exempt transactions of Labor Statistics publishes consumer-
exemption threshold from the prior based indices monthly, but does not
made by the Board in April 2011.
year. Based on the annual percentage report a CPI change on June 1;
Although the Bureau has the authority
decrease in the CPI–W as of June 1, adjustments are reported in the middle
to issue rules to implement the CLA for
2015, the exemption threshold will of the month. The CPI–W is a subset of
most entities, the Board retains
remain at $54,600 through December 31, the CPI–U index (based on all urban
authority to issue rules under the CLA
2016. consumers) and represents
for certain motor vehicle dealers
Because the Dodd-Frank Act also approximately 28 percent of the U.S.
covered by section 1029(a) of the Dodd-
requires similar adjustments in the population. Because the CPI–W reported
Frank Act, and the Board’s Regulation
Truth in Lending Act’s threshold for on May 22, 2015 reflects a 0.8 percent
M continues to apply to those entities.4
exempt consumer credit transactions, decrease in the CPI–W from April 2014
Section 213.2(e)(1) of the Board’s
the Board and the Bureau are making to April 2015, the Board and the Bureau
Regulation M and § 1013.2(e)(1) of the
similar amendments to each of their are not adjusting the exemption
Bureau’s Regulation M, and their
respective regulations implementing the threshold amount. The Board and the
accompanying commentaries, provide
Truth in Lending Act elsewhere in this Bureau are revising the commentaries to
that the exemption threshold will be
issue of the Federal Register. their respective regulations to add new
adjusted annually effective January 1 of
DATES: This final rule is effective each year based on any annual comment 2(e)–9.vii to state that, from
January 1, 2016. percentage increase in the CPI–W that January 1, 2016 through December 31,
FOR FURTHER INFORMATION CONTACT: was in effect on the preceding June 1. 2016, the threshold amount is $54,600.
Board: Vivian W. Wong, Counsel, Any increase in the threshold amount These revisions are effective January 1,
Division of Consumer and Community will be rounded to the nearest $100 2016.
Affairs, Board of Governors of the increment. For example, if the annual III. Administrative Law Matters
Federal Reserve System, at (202) 452– percentage increase in the CPI–W would
3667; for users of Telecommunications result in a $950 increase in the Administrative Procedure Act
Device for the Deaf (TDD) only, contact threshold amount, the threshold amount Under the Administrative Procedure
(202) 263–4869. Act, notice and opportunity for public
Bureau: James Wylie, Counsel, Office 2 76 FR 18349 (Apr. 4, 2011); 76 FR 18354 (Apr. comment are not required if the Board
of Regulations, Bureau of Consumer 4, 2011). and the Bureau find that notice and
Financial Protection, at (202) 435–7700. 3 76 FR 78500 (Dec. 19, 2011).
public comment are impracticable,
4 Section 1029(a) of the Dodd-Frank Act states:
SUPPLEMENTARY INFORMATION: unnecessary, or contrary to the public
‘‘Except as permitted in subsection (b), the Bureau
interest.7 The amendment in this notice
I. Background may not exercise any rulemaking, supervisory,
enforcement, or any other authority . . . over a is technical and applies the method
The Dodd-Frank Wall Street Reform motor vehicle dealer that is predominantly engaged previously set forth in the Board Final
and Consumer Protection Act of 2010 in the sale and servicing of motor vehicles, the Threshold Rules.8 For these reasons, the
(Dodd-Frank Act) increased the leasing and servicing of motor vehicles, or both.’’
12 U.S.C. 5519(a). Section 1029(b) of the Dodd-
Board and the Bureau have determined
threshold in the Consumer Leasing Act Frank Act states: ‘‘Subsection (a) shall not apply to that publishing a notice of proposed
(CLA) for exempt consumer leases from any person, to the extent that such person (1) rulemaking and providing opportunity
$25,000 to $50,000, effective July 21, provides consumers with any services related to for public comment are unnecessary.
2011.1 In addition, the Dodd-Frank Act residential or commercial mortgages or self-
financing transactions involving real property; (2)
Therefore, the amendments are adopted
requires that this threshold be adjusted operates a line of business (A) that involves the in final form.
annually for inflation by the annual extension of retail credit or retail leases involving
percentage increase in the Consumer motor vehicles; and (B) in which (i) the extension Regulatory Flexibility Act
Price Index for Urban Wage Earners and of retail credit or retail leases are provided directly The Regulatory Flexibility Act (RFA)
to consumers; and (ii) the contract governing such
Clerical Workers (CPI–W), as published does not apply to a rulemaking where a
mstockstill on DSK4VPTVN1PROD with RULES
extension of retail credit or retail leases is not
by the Bureau of Labor Statistics. In routinely assigned to an unaffiliated third party
5 See comments 2(e)–9 in Supplements I of 12
April 2011, the Board issued a final rule finance or leasing source; or (3) offers or provides
a consumer financial product or service not CFR part 213 and 12 CFR part 1013.
amending Regulation M (which 6 76 FR 18354, 18355 n.1 (Apr. 4, 2011) (‘‘[A]n
involving or related to the sale, financing, leasing,
implements the CLA) consistent with rental, repair, refurbishment, maintenance, or other annual period of deflation or no inflation would not
servicing of motor vehicles, motor vehicle parts, or require a change in the threshold amount.’’).
1 Public Law 111–203 section 1100E, 124 Stat. 7 See 5 U.S.C. 553(b)(B).
any related or ancillary product or service.’’ 12
1376 (2010). U.S.C. 5519(b). 8 See supra note 6.
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general notice of proposed rulemaking Bureau of Consumer Financial for the agencies’ regulations that
is not required.9 As noted previously, Protection implement the Truth in Lending Act
the agencies have determined that it is (TILA). The Dodd-Frank Wall Street
Authority and Issuance
unnecessary to publish a general notice Reform and Consumer Protection Act
of proposed rulemaking for this joint For the reasons set forth in the (Dodd-Frank Act) amended TILA by
final rule. Accordingly, the RFA’s preamble, the Bureau amends requiring that the dollar threshold for
requirements relating to an initial and Regulation M, 12 CFR part 1013, as set exempt consumer credit transactions be
final regulatory flexibility analysis do forth below: adjusted annually by the annual
not apply. percentage increase in the Consumer
PART 1013—CONSUMER LEASING Price Index for Urban Wage Earners and
Paperwork Reduction Act (REGULATION M) Clerical Workers (CPI–W). If there is no
annual percentage increase in the CPI–
In accordance with the Paperwork ■ 3. The authority citation for part 1013 W, the Board and Bureau will not adjust
Reduction Act of 1995,10 the agencies continues to read as follows: this exemption threshold from the prior
reviewed this final rule. No collections Authority: 15 U.S.C. 1604 and 1667f; Pub. year. Based on the annual percentage
of information pursuant to the L. 111–203 section 1100E, 124 Stat. 1376. decrease in the CPI–W as of June 1,
Paperwork Reduction Act are contained 2015, the exemption threshold will
in the final rule. ■ 4. In Supplement I to part 1013, under
remain at $54,600 through December 31,
Section 1013.2—Definitions, under 2(e)
2016.
List of Subjects Consumer Lease, paragraph 9.vii is Because the Dodd-Frank Act also
added to read as follows: requires similar adjustments in the
12 CFR Part 213
Supplement I to Part 1013—Official Consumer Leasing Act’s threshold for
Advertising, Consumer leasing, Interpretations exempt consumer leases, the Board and
Consumer protection, Federal Reserve the Bureau are making similar
System, Reporting and recordkeeping * * * * *
amendments to each of their respective
requirements. Section 1013.2—Definitions regulations implementing the Consumer
* * * * * Leasing Act elsewhere in this issue of
12 CFR Part 1013 the Federal Register.
2(e) Consumer Lease. * * * .
Advertising, Consumer leasing, 9. * * * DATES: This final rule is effective
vii. From January 1, 2016 through January 1, 2016.
Reporting and recordkeeping December 31, 2016, the threshold amount is
requirements. FOR FURTHER INFORMATION CONTACT:
$54,600.
Board: Vivian W. Wong, Counsel,
Board of Governors of the Federal * * * * * Division of Consumer and Community
Reserve System By order of the Board of Governors of the Affairs, Board of Governors of the
Federal Reserve System, November 18, 2015. Federal Reserve System, at (202) 452–
Text of Final Revisions
Robert deV. Frierson, 3667; for users of Telecommunications
For the reasons set forth in the Secretary of the Board. Device for the Deaf (TDD) only, contact
preamble, the Board amends Regulation Dated: September 22, 2015. (202) 263–4869.
M, 12 CFR part 213, as set forth below: Richard Cordray, Bureau: James Wylie, Counsel, Office
Director, Bureau of Consumer Financial of Regulations, Bureau of Consumer
PART 213—CONSUMER LEASING Protection. Financial Protection, at (202) 435–7700.
(REGULATION M) [FR Doc. 2015–30071 Filed 11–25–15; 8:45 am] SUPPLEMENTARY INFORMATION:
BILLING CODE 4810–AM–P; 6210–01–P I. Background
■ 1. The authority citation for part 213
continues to read as follows: The Dodd-Frank Wall Street Reform
FEDERAL RESERVE SYSTEM and Consumer Protection Act (Dodd-
Authority: 15 U.S.C. 1604 and 1667f; Pub. Frank Act) increased the threshold in
L. 111–203 section 1100E, 124 Stat. 1376. the Truth in Lending Act (TILA) for
12 CFR Part 226
■ 2. In Supplement I to Part 213, under exempt consumer credit transactions 1
[Docket No. R–1520] from $25,000 to $50,000, effective July
Section 213.2—Definitions, under 2(e)
Consumer Lease, paragraph 9.vii is RIN 7100 AE–36 21, 2011.2 In addition, the Dodd-Frank
added to read as follows: Act requires that this threshold be
BUREAU OF CONSUMER FINANCIAL adjusted annually for inflation by the
Supplement I to Part 213—Official Staff PROTECTION annual percentage increase in the
Commentary to Regulation M Consumer Price Index for Urban Wage
12 CFR Part 1026 Earners and Clerical Workers (CPI–W),
* * * * *
as published by the Bureau of Labor
Section 213.2—Definitions Truth in Lending (Regulation Z) Statistics. In April 2011, the Board
* * * * * issued a final rule amending Regulation
AGENCIES: Board of Governors of the
2(e) Consumer Lease. Z (which implements TILA) consistent
Federal Reserve System (Board); and
9. * * * Bureau of Consumer Financial
mstockstill on DSK4VPTVN1PROD with RULES
1 Although consumer credit transactions above
vii. From January 1, 2016 through Protection (Bureau). the threshold are generally exempt, loans secured
December 31, 2016, the threshold amount is by real property or by personal property used or
ACTION: Final rules, official
$54,600. expected to be used as the principal dwelling of a
interpretations and commentary. consumer and private education loans are covered
* * * * *
by TILA regardless of the loan amount. See 12 CFR
SUMMARY: The Board and the Bureau are 226.3(b)(1)(i) and 12 CFR 1026.3(b)(1)(i).
9 See 5 U.S.C. 603 and 604. publishing final rules amending the 2 Public Law 111–203 section 1100E, 124 Stat.
10 44 U.S.C. 3506; 5 CFR part 1320. official interpretations and commentary 1376 (2010).
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Document Created: 2015-12-14 14:04:50
Document Modified: 2015-12-14 14:04:50
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rules, official interpretations and commentary. | |
| Dates | This final rule is effective January 1, 2016. | |
| Contact | Board: Vivian W. Wong, Counsel, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, at (202) 452-3667; for users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263- 4869. | |
| FR Citation | 80 FR 73945 | |
| RIN Number | 7100 AE35 and 3170-AA06 | |
| CFR Citation | 12
CFR
1013 12 CFR 213 | |
| CFR Associated | Advertising; Consumer Leasing; Consumer Protection; Federal Reserve System and Reporting and Recordkeeping Requirements |
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