Yes, for 2025, consumer loans (not secured by real property or a dwelling) that exceed $71,900 are generally exempt from Regulation Z (Truth in Lending Act). This threshold, which increased from $69,500, applies to loans made on or after January 1, 2025. For 2026, this limit will rise to $73,400.
Annual threshold adjustments. Based on the CPI-W in effect as of June 1, 2025, the exemption threshold will increase from $71,900 to $73,400, effective Jan. 1, 2026.
Coverage Considerations under Regulation Z
(Exempt credit includes loans with a business or agricultural purpose, and certain student loans. Credit extended to acquire or improve rental property that is not owner-occupied is considered business purpose credit.)
TILA promotes the informed use of consumer credit by requiring timely disclosure about its costs. It also includes substantive provisions such as the consumer's right of rescission on certain mortgage loans and timely resolution of billing disputes.
However, several types of credit fall outside Regulation Z's scope. Business loans, commercial credit, agricultural loans, federal student loans, and loans for public utility services are generally exempt.
The right of rescission applies only to certain types of home loans, including:
Certain types of loans are not subject to Regulation Z, including federal student loans, loans for business, commercial, agricultural, or organizational use, loans above a certain amount, loans for public utility services, and securities or commodities offered by the Securities and Exchange Commission.
The final rule exempted from the Regulation Z HPML escrow requirement any loan made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if: (1) the institution has assets of $10 billion or less; (2) the institution and its affiliates ...
Truth in Lending Act (Regulation Z)
Debt that are not regulated include:
Mortgages. Debts to family or friends. Debts to unlicensed lenders or loan sharks. Household bills like gas, electricity and water.
It is the purpose of the loan, not the collateral, which determines if Reg Z applies.
In addition, certain types of loans are not subject to Regulation Z. These include: Federal student loans. Credit for business, commercial, agricultural or organizational use.
For 2025, $26,968, reflecting a 3.4 percent increase in the CPI-U from June 2023 to June 2024, rounded to the nearest whole dollar. xii. For 2026, $27,592, reflecting a 2.3 percent increase in the CPI-U from June 2024 to June 2025, rounded to the nearest whole dollar.
The Equal Credit Opportunity Act (ECOA) of 1974, which is implemented by the Board's Regulation B, applies to all creditors.
Regulation Z applies to all loans secured by a residence. It does not apply to commercial loans or to agricultural loans over $25,000. Its provisions cover the disclosure of costs, the right to rescind the credit transaction, advertising credit offers, and penalties for non-compliance with the act.
12 CFR Part 1026 - Truth in Lending (Regulation Z)
Business loans, personal guarantees, tax debt, mortgages for business properties, and necessary medical bills and legal fees are all categorized as non-consumer debt. All of this is either accrued for business purposes or otherwise unrelated to the debtor's consumption.
TILA applies to most forms of consumer lending, including mortgages, auto loans, credit cards, and payday lending. The Consumer Financial Protection Bureau (CFPB) has rulemaking authority over TILA and its implementing regulation, Regulation Z.
Final answer: Consumer loans over $71,900 are generally exempt from Reg Z disclosure requirements, making the statement true. This exemption is part of the Truth in Lending Act, which aims to protect borrowers.
The regulation requires that the terms "finance charge" and "annual percentage rate" be disclosed more conspicuously than any other required disclosure. The finance charge and APR, more than any other disclosures, enable consumers to understand the cost of the credit and to comparison shop for credit.
However, private education loans and loans secured by real property, such as mortgages, are subject to Regulation Z regardless of the amount of the loan.
A conventional loan is a mortgage loan that's not backed by the government. These loans come in all shapes and sizes, and while they don't provide some of the benefits FHA, VA and USDA loans offer, conventional loans remain the most common type of mortgage loan.
Under Regulation Z, a finance charge does not include a charge imposed by a financial institution for paying items that overdraw an account unless, as is typically the case for overdraft lines of credit, the payment of such items and the imposition of the charge are previously agreed upon in writing.
The Truth in Lending Act, or TILA, also known as regulation Z, requires lenders to disclose information about all charges and fees associated with a loan. This 1968 federal law was created to promote honesty and clarity by requiring lenders to disclose terms and costs of consumer credit.