FEDERAL RESERVE PROPOSES TO INCREASE CONSUMER CREDIT, LEASE-PROTECTION LIMITS TO $50,000

The U.S. Federal Reserve proposed two rules that would raise consumer protection coverage limits for credit transactions and leases, Bloomberg News reported yesterday. The rules would increase the limits to $50,000, according to the Federal Reserve, and amounts will be adjusted annually to reflect any increase in the consumer price index. Consumer loans of more than $25,000 are generally exempt from the protections of the Truth in Lending Act, and leases where the consumer’s total obligation exceeds $25,000 are also exempt from safeguards of the Consumer Leasing Act. The $50,000 limit for leases would apply to everything consumers are required to pay under the lease excluding taxes, the Fed said. The financial overhaul bill enacted July 21 included a provision to extend coverage to $50,000 effective July 21, 2011.

http://www.bloomberg.com/news/print/2010-12-13/fed-to-increase-consumer-lease-protection-limits-to-50-000.html