What threshold must a loan exceed to not be governed by Regulation Z?

The threshold that a loan must exceed to not be governed by Regulation Z, according to the Truth in Lending Act (TILA), is $60,000. This means that loans made for amounts that are equal to or less than this threshold are subject to the regulations outlined in Regulation Z, which include disclosure requirements for creditors.

Regulation Z mainly applies to consumer credit transactions; therefore, consumer loans under this limit must adhere to specific regulations designed to protect consumers by ensuring they receive clear and accurate information regarding the terms of their loans. Loans exceeding this amount are typically considered to be business or commercial loans, which are not governed by the same consumer protection laws under Regulation Z.

It’s important to note that this threshold can impact how lenders present loan information and what disclosures are required, making it a significant figure for compliance in lending practices.