Consumer Leasing Regulation M Final Rule - Threshold Update

CFPB Final Rules

Published January 1st, 2026

Detected March 14th, 2026

Summary

The Consumer Financial Protection Bureau (CFPB) has finalized amendments to Regulation M, increasing the dollar threshold for exempt consumer leases from $71,900 to $73,400, effective January 1, 2026. This adjustment is mandated annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

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What changed

The Consumer Financial Protection Bureau (CFPB) has issued a final rule amending Regulation M, which implements the Consumer Leasing Act. The primary change is an increase in the dollar threshold for exempt consumer leases from $71,900 to $73,400. This adjustment, effective January 1, 2026, is based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, 2025, as required by the Dodd-Frank Act.

Regulated entities, particularly those involved in consumer leasing, should update their internal systems and compliance procedures to reflect the new exemption threshold. While this is an annual adjustment and not a new regulatory burden, ensuring accurate application of the threshold is crucial to avoid potential violations. No specific compliance deadline beyond the effective date of January 1, 2026, is noted for this particular amendment.

What to do next

Update internal systems to reflect the new consumer lease exemption threshold of $73,400, effective January 1, 2026.

Source document (simplified)

Category: Final rule

Consumer Leasing (Regulation M)

DEC 15, 2025

The Board and the Bureau (collectively, Agencies) are finalizing amendments to the official interpretations 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). Based on the annual percentage increase in the CPI-W as of June 1, 2025, the exemption threshold will increase from $71,900 to $73,400 effective January 1, 2026. Because the Dodd-Frank Act also requires similar adjustments in the Truth in Lending Act’s threshold for exempt consumer credit transactions, the Agencies are making similar amendments to each of their respective regulations implementing the Truth in Lending Act elsewhere in the Rules section of this issue of the Federal Register.