Source: https://www.federalregister.gov/articles/2012/11/21/2012-27996/consumer-leasing-regulation-m
Timestamp: 2016-06-24 21:59:47
Document Index: 504347905

Matched Legal Cases: ['art 1013', '§ 1013', 'art 213', 'art 1013', 'ART 213', 'art 213', 'art 213', 'art 213', 'ART 1013', 'art 1013', 'art 1013', 'art 1013', '§ 1100']

A Rule by the Federal Reserve System and the Consumer Financial Protection Bureau on
77 FR 69735
-69736 (2 pages)
Document Number: 2012-27996
Shorter URL: https://federalregister.gov/a/2012-27996 Related Topics
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). Effective July 21, 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended the CLA by increasing the threshold for exempt consumer leases from $25,000 to $50,000 and requiring that, on or after December 31, 2011, this threshold be adjusted annually by any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Accordingly, the exemption threshold was adjusted to $51,800 effective January 1, 2012. Based on the annual percentage increase in the CPI-W as of June 1, 2012, the Board and the Bureau are adjusting the exemption threshold from $51,800 to $53,000, effective January 1, 2013.
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 the Federal Register.
Regulation HH--Financial Market Utilities (Docket No. R-1455) 2 actions from March 4th, 2013 to November 2013
Board Requested Comment
78 FR 14024
Board Expects Further Action
Section 213.2Definitions
Section 1013.2Definitions
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.
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.
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).
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.
Section 213.2(e)(1) of the Board's Regulation M and § 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. See comments 2(e)-9 in Supplements I of 12 CFR part 213 and 12 CFR part 1013.
Effective January 1, 2013, the adjusted exemption threshold amount is $53,000. This adjustment is based on the CPI-W index in effect on June 1, 2012, which was reported on May 15, 2012. 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. The adjustment reflects a 2.4 percent increase in the CPI-W from April 2011 to April 2012 and is rounded to the nearest $100 increment. Accordingly, the Board and the Bureau are revising the commentaries to their respective regulations to add new subparagraph 2(e)-9.iv stating that, from January 1, 2013 through December 31, 2013, the threshold amount is $53,000. These revisions are effective January 1, 2013.
III. Administrative Law Matters Back to Top
Board of Governors of the Federal Reserve System Back to Top
Text of Final Revisions Back to Top
PART 213—CONSUMER LEASING (REGULATION M) Back to Top
1.The authority citation for part 213 continues to read as follows: Authority:
2.In Supplement I to Part 213, under Section 213.2—Definitions, under 2(e) Consumer Lease, new paragraph 9.iv is added to read as follows: Supplement I to Part 213—Official Staff Commentary to Regulation M Back to Top
9. Threshold amount.* * *
Bureau of Consumer Financial Protection Back to Top
PART 1013—CONSUMER LEASING (REGULATION M) Back to Top
1.The authority citation for part 1013 is revised to read as follows: Authority:
2.In Supplement I to part 1013, under Section 1013.2—Definitions, under 2(e) Consumer Lease, new paragraph 9.iv is added to read as follows: Supplement I to Part 1013—Official Interpretations Back to Top
[FR Doc. 2012-27996 Filed 11-20-12; 8:45 am]
1. Public Law 111-203 § 1100E, 124 Stat. 1376 (2010).