Consumer Leasing (Regulation M), 63666-63671 [2022-22818]

Agencies

• FEDERAL RESERVE SYSTEM
• BUREAU OF CONSUMER FINANCIAL PROTECTION

[Federal Register Volume 87, Number 202 (Thursday, October 20, 2022)]
[Rules and Regulations]
[Pages 63666-63671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22818]


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FEDERAL RESERVE SYSTEM

12 CFR Part 213

[Docket No. R-1783]
RIN 7100-AG41

BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1013


Consumer Leasing (Regulation M)

AGENCY: Board of Governors of the Federal Reserve System (Board) and 
Bureau of Consumer Financial Protection (Bureau).

[[Page 63667]]


ACTION: Final rules, official interpretations, and commentary.

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SUMMARY: The Board and the Bureau (collectively, the Agencies) are 
finalizing amendments to the official interpretations and commentary 
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). Under regulations adopted by the 
Agencies, if there is no annual percentage increase in the CPI-W, the 
Agencies will not adjust this exemption threshold from the prior year. 
Additionally, in years following a year in which the exemption 
threshold was not adjusted because the CPI-W decreased, the threshold 
is calculated by applying the annual percentage change in the CPI-W to 
the dollar amount that would have resulted, after rounding, if the 
decreases and any subsequent increases in the CPI-W had been taken into 
account. Based on the annual percentage increase in the CPI-W as of 
June 1, 2022, the exemption threshold will increase from $61,000 to 
$66,400 effective January 1, 2023. 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.

DATES: This final rule is effective January 1, 2023.

FOR FURTHER INFORMATION CONTACT: 
    Board: Vivian W. Wong, Senior Counsel, Division of Consumer and 
Community Affairs, Board of Governors of the Federal Reserve System, at 
(202) 452-3667. For users of TTY-TRS, please call 711 from any 
telephone, anywhere in the United States.
    Bureau: Thomas Dowell, Senior Counsel, Office of Regulations, 
Bureau of Consumer Financial Protection, at (202) 435-7700. If you 
require this document in an alternative electronic format, please 
contact [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Dodd-Frank Act increased the threshold in the CLA for exempt 
consumer leases, and the threshold in the Truth in Lending Act (TILA) 
for exempt consumer credit transactions,\1\ from $25,000 to $50,000, 
effective July 21, 2011.\2\ In addition, the Dodd-Frank Act requires 
that, on and after December 31, 2011, these thresholds be adjusted 
annually for inflation by the annual percentage increase in the CPI-W, 
as published by the Bureau of Labor Statistics.\3\ 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, along with 
a similar final rule amending Regulation Z (which implements TILA) 
(collectively, the Board Final Threshold Rules).\4\
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    \1\ Although consumer credit transactions above the threshold 
are generally exempt, loans secured by real property or by personal 
property used or expected to be used as the principal dwelling of a 
consumer and private education loans are covered by TILA regardless 
of the loan amount. See 12 CFR 226.3(b)(1)(i) (Board) and 12 CFR 
1026.3(b)(1)(i) (Bureau).
    \2\ Public Law 111-203, section 1100E, 124 Stat. 1376, 2111 
(2010).
    \3\ Id.
    \4\ 76 FR 18349 (Apr. 4, 2011); 76 FR 18354 (Apr. 4, 2011).
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    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, 12 CFR part 1013, substantially duplicating the 
Board's Regulation M.\5\ 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.\6\
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    \5\ See 76 FR 78500 (Dec. 19, 2011); 81 FR 25323 (Apr. 28, 
2016).
    \6\ Section 1029(a) of the Dodd-Frank Act states: ``Except as 
permitted in subsection (b), the Bureau may not exercise any 
rulemaking, supervisory, enforcement, or any other authority . . . 
over a motor vehicle dealer that is predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' 12 U.S.C. 5519(a). Section 1029(b) of the 
Dodd-Frank Act provides that ``[s]ubsection (a) shall not apply to 
any person, to the extent that such person--(1) provides consumers 
with any services related to residential or commercial mortgages or 
self-financing transactions involving real property; (2) operates a 
line of business--(A) that involves the extension of retail credit 
or retail leases involving motor vehicles; and (B) in which--(i) the 
extension of retail credit or retail leases are provided directly to 
consumers; and (ii) the contract governing such extension of retail 
credit or retail leases is not routinely assigned to an unaffiliated 
third party finance or leasing source; or (3) offers or provides a 
consumer financial product or service not involving or related to 
the sale, financing, leasing, rental, repair, refurbishment, 
maintenance, or other servicing of motor vehicles, motor vehicle 
parts, or any related or ancillary product or service.'' 12 U.S.C. 
5519(b).
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    The Agencies' regulations,\7\ 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. They 
further provide that 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.\8\ Since 2011, the Agencies have adjusted the 
Regulation M exemption threshold annually, in accordance with these 
rules.
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    \7\ 12 CFR 213.2(e)(1) (Board) and 12 CFR 1013.2(e)(1) (Bureau).
    \8\ See comments 2(e)-9 in Supplements I of 12 CFR parts 213 and 
1013.
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    On November 30, 2016, the Agencies published a final rule in the 
Federal Register to memorialize the calculation method used by the 
Agencies each year to adjust the exemption threshold to ensure that, as 
contemplated by section 1100E(b) of the Dodd-Frank Act, the values for 
the exemption threshold keep pace with the CPI-W (Regulation M 
Adjustment Calculation Rule).\9\ The Regulation M Adjustment 
Calculation Rule memorialized the policy that, if there is no annual 
percentage increase in the CPI-W, the Agencies will not adjust the 
exemption threshold from the prior year. The Regulation M Adjustment 
Calculation Rule also provided that, in years following a year in which 
the exemption threshold was not adjusted because there was a decrease 
in the CPI-W from the previous year, the threshold is calculated by 
applying the annual percentage change in the CPI-W to the dollar amount 
that would have resulted, after rounding, if the decreases and any 
subsequent increases in the CPI-W had been taken into account. If the 
resulting amount calculated, after rounding, is greater than the 
current threshold, then the threshold effective January 1 the following 
year will increase accordingly; if the resulting amount calculated, 
after rounding, is equal to or less than the current threshold, then 
the threshold effective January 1 the following year will not change, 
but future increases will be calculated based

[[Page 63668]]

on the amount that would have resulted, after rounding.
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    \9\ See 81 FR 86256 (Nov. 30, 2016).
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II. 2023 Adjustment and Commentary Revision

    Effective January 1, 2023, the exemption threshold amount is 
increased from $61,000 to $66,400. This amount is based on the CPI-W in 
effect on June 1, 2022, which was reported on May 11, 2022 (based on 
April 2022 data).\10\ The CPI-W is a subset of the CPI-U index (based 
on all urban consumers) and represents approximately 29 percent of the 
U.S. population. The CPI-W reported on May 11, 2022 reflects an 8.9 
percent increase in the CPI-W from April 2021 to April 2022. 
Accordingly, the 8.9 percent increase in the CPI-W from April 2021 to 
April 2022 results in an exemption threshold amount of $66,400, after 
rounding. The Agencies are revising the commentaries to their 
respective regulations to add new comment 2(e)-11.xiv to state that, 
from January 1, 2023 through December 31, 2023, the threshold amount is 
$66,400. These revisions are effective January 1, 2023.
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    \10\ The Bureau of Labor Statistics calculates consumer-based 
indices for each month but does not report those indices until the 
middle of the following month. As such, the most recently reported 
indices as of June 1, 2022 were reported on May 11, 2022 and reflect 
economic conditions in April 2022.
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III. Regulatory Analysis

Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Agencies find that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\11\ The amendments in this rule are technical and 
apply the method previously set forth in the Board Final Threshold 
Rules and the Regulation M Adjustment Calculation Rule. For these 
reasons, the Agencies have determined that publishing a notice of 
proposed rulemaking and providing opportunity for public comment are 
unnecessary. Therefore, the amendments are adopted in final form.
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    \11\ 5 U.S.C. 553(b)(B).
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Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required.\12\ As 
noted previously, the Agencies have determined that it is unnecessary 
to publish a general notice of proposed rulemaking for this joint final 
rule. Accordingly, the RFA's requirements relating to an initial and 
final regulatory flexibility analysis do not apply.
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    \12\ 5 U.S.C. 603(a) and 604(a).
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Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\13\ the 
Agencies reviewed this final rule. The Agencies have determined that 
this final rule does not create any new information collections or 
substantially revise any existing collections.
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    \13\ 44 U.S.C. 3506; 5 CFR part 1320.
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Bureau Congressional Review Act Statement

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the U.S. Senate, the U.S. House of Representatives, and 
the Comptroller General of the United States prior to the rule taking 
effect. The Office of Information and Regulatory Affairs has designated 
this rule as not a ``major rule'' as defined by 5 U.S.C. 804(2).

Bureau Signing Authority

    The Associate Director of Research, Markets, and Regulations, Janis 
K. Pappalardo, having reviewed and approved this document, is 
delegating the authority to sign this document electronically to Grace 
Feola, Bureau Federal Register Liaison, for purposes of publication in 
the Federal Register.

List of Subjects

12 CFR Part 213

    Advertising, Consumer leasing, Consumer protection, Federal Reserve 
System, Reporting and recordkeeping requirements.

12 CFR Part 1013

    Administrative practice and procedure, Advertising, Consumer 
protection, Reporting and recordkeeping requirements, Truth in lending.

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 
Regulation M, 12 CFR part 213, as set forth below:

PART 213--CONSUMER LEASING (REGULATION M)

0
1. The authority citation for part 213 continues to read as follows:

    Authority: 15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 
1100E, 124 Stat. 1376.


0
2. In Supplement I to part 213, under Section 213.2--Definitions, 
revise 2(e) Consumer Lease to read as follows:

Supplement I to Part 213--Official Staff Interpretations

* * * * *
Section 213.2--Definitions
* * * * *
    2(e) Consumer Lease.
    1. Primary purposes. A lessor must determine in each case if the 
leased property will be used primarily for personal, family, or 
household purposes. If a question exists as to the primary purpose for 
a lease, the fact that a lessor gives disclosures is not controlling on 
the question of whether the transaction is covered. The primary purpose 
of a lease is determined before or at consummation and a lessor need 
not provide Regulation M disclosures where there is a subsequent change 
in the primary use.
    2. Period of time. To be a consumer lease, the initial term of the 
lease must be more than four months. Thus, a lease of personal property 
for four months, three months or on a month-to-month or week-to-week 
basis (even though the lease actually extends beyond four months) is 
not a consumer lease and is not subject to the disclosure requirements 
of the regulation. However, a lease that imposes a penalty for not 
continuing the lease beyond four months is considered to have a term of 
more than four months. To illustrate:
    i. A three-month lease extended on a month-to-month basis and 
terminated after one year is not subject to the regulation.
    ii. A month-to-month lease with a penalty, such as the forfeiture 
of a security deposit for terminating before one year, is subject to 
the regulation.
    3. Total contractual obligation. The total contractual obligation 
is not necessarily the same as the total of payments disclosed under 
Sec.  213.4(e). The total contractual obligation includes nonrefundable 
amounts a lessee is contractually obligated to pay to the lessor, but 
excludes items such as:
    i. Residual value amounts or purchase-option prices;
    ii. Amounts collected by the lessor but paid to a third party, such 
as taxes, licenses, and registration fees.
    4. Credit sale. The regulation does not cover a lease that meets 
the definition of a credit sale in Regulation Z, 12 CFR 226.2(a)(16), 
which is defined, in part, as a bailment or lease (unless terminable 
without penalty at any time by the consumer) under which the consumer:
    i. Agrees to pay as compensation for use a sum substantially 
equivalent to, or in excess of, the total value of the property and 
services involved; and
    ii. Will become (or has the option to become), for no additional 
consideration

[[Page 63669]]

or for nominal consideration, the owner of the property upon compliance 
with the agreement.
    5. Agricultural purpose. Agricultural purpose means a purpose 
related to the production, harvest, exhibition, marketing, 
transportation, processing, or manufacture of agricultural products by 
a natural person who cultivates, plants, propagates, or nurtures those 
agricultural products, including but not limited to the acquisition of 
personal property and services used primarily in farming. Agricultural 
products include horticultural, viticultural, and dairy products, 
livestock, wildlife, poultry, bees, forest products, fish and 
shellfish, and any products thereof, including processed and 
manufactured products, and any and all products raised or produced on 
farms and any processed or manufactured products thereof.
    6. Organization or other entity. A consumer lease does not include 
a lease made to an organization such as a corporation or a government 
agency or instrumentality. Such a lease is not covered by the 
regulation even if the leased property is used (by an employee, for 
example) primarily for personal, family or household purposes, or is 
guaranteed by or subsequently assigned to a natural person.
    7. Leases of personal property incidental to a service. The 
following leases of personal property are deemed incidental to a 
service and thus are not subject to the regulation:
    i. Home entertainment systems requiring the consumer to lease 
equipment that enables a television to receive the transmitted 
programming.
    ii. Security alarm systems requiring the installation of leased 
equipment intended to monitor unlawful entries into a home and in some 
cases to provide fire protection.
    iii. Propane gas service where the consumer must lease a propane 
tank to receive the service.
    8. Safe deposit boxes. The lease of a safe deposit box is not a 
consumer lease under Sec.  213.2(e).
    9. Threshold amount. A consumer lease is exempt from the 
requirements of this part if the total contractual obligation exceeds 
the threshold amount in effect at the time of consummation. The 
threshold amount in effect during a particular time period is the 
amount stated in comment 2(e)-11 for that period. The threshold amount 
is adjusted effective January 1 of each year by any annual percentage 
increase in the Consumer Price Index for Urban Wage Earners and 
Clerical Workers (CPI-W) that was in effect on the preceding June 1. 
Comment 2(e)-11 will be amended to provide the threshold amount for the 
upcoming year after the annual percentage change in the CPI-W that was 
in effect on June 1 becomes available. 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. If a consumer lease is 
exempt from the requirements of this part because the total contractual 
obligation exceeds the threshold amount in effect at the time of 
consummation, the lease remains exempt regardless of a subsequent 
increase in the threshold amount.
    10. No increase in the CPI-W. If the CPI-W in effect on June 1 does 
not increase from the CPI-W in effect on June 1 of the previous year, 
the threshold amount effective the following January 1 through December 
31 will not change from the previous year. When this occurs, for the 
years that follow, the threshold is calculated based on the annual 
percentage change in the CPI-W applied to the dollar amount that would 
have resulted, after rounding, if decreases and any subsequent 
increases in the CPI-W had been taken into account.
    i. Net increases. If the resulting amount calculated, after 
rounding, is greater than the current threshold, then the threshold 
effective January 1 the following year will increase accordingly.
    ii. Net decreases. If the resulting amount calculated, after 
rounding, is equal to or less than the current threshold, then the 
threshold effective January 1 the following year will not change, but 
future increases will be calculated based on the amount that would have 
resulted.
    11. Threshold. For purposes of Sec.  213.2(e)(1), the threshold 
amount in effect during a particular period is the amount stated below 
for that period.
    i. Prior to July 21, 2011, the threshold amount is $25,000.
    ii. From July 21, 2011 through December 31, 2011, the threshold 
amount is $50,000.
    iii. From January 1, 2012 through December 31, 2012, the threshold 
amount is $51,800.
    iv. From January 1, 2013 through December 31, 2013, the threshold 
amount is $53,000.
    v. From January 1, 2014 through December 31, 2014, the threshold 
amount is $53,500.
    vi. From January 1, 2015 through December 31, 2015, the threshold 
amount is $54,600.
    vii. From January 1, 2016 through December 31, 2016, the threshold 
amount is $54,600.
    viii. From January 1, 2017 through December 31, 2017, the threshold 
amount is $54,600.
    ix. From January 1, 2018 through December 31, 2018, the threshold 
amount is $55,800.
    x. From January 1, 2019 through December 31, 2019, the threshold 
amount is $57,200.
    xi. From January 1, 2020 through December 31, 2020, the threshold 
amount is $58,300.
    xii. From January 1, 2021 through December 31, 2021, the threshold 
amount is $58,300.
    xiii. From January 1, 2022 through December 31, 2022, the threshold 
amount is $61,000.
    xiv. From January 1, 2023 through December 31, 2023, the threshold 
amount is $66,400.
* * * * *

BUREAU OF CONSUMER FINANCIAL PROTECTION

Authority and Issuance

    For the reasons set forth in the preamble, the Bureau amends 
Regulation M, 12 CFR part 1013, as set forth below:

PART 1013--CONSUMER LEASING (REGULATION M)

0
3. The authority citation for part 1013 continues to read as follows:

    Authority:  15 U.S.C. 1604 and 1667f; Pub. L. 111-203 section 
1100E, 124 Stat. 1376.


0
4. In Supplement I to part 1013, under Section 1013.2--Definitions, 
revise 2(e)--Consumer Lease to read as follows:

Supplement I to Part 1013--Official Interpretations

* * * * *
Section 1013.2--Definitions
* * * * *
    2(e) Consumer Lease
    1. Primary purposes. A lessor must determine in each case if the 
leased property will be used primarily for personal, family, or 
household purposes. If a question exists as to the primary purpose for 
a lease, the fact that a lessor gives disclosures is not controlling on 
the question of whether the transaction is covered. The primary purpose 
of a lease is determined before or at consummation and a lessor need 
not provide Regulation M disclosures where there is a subsequent change 
in the primary use.

[[Page 63670]]

    2. Period of time. To be a consumer lease, the initial term of the 
lease must be more than four months. Thus, a lease of personal property 
for four months, three months or on a month-to-month or week-to-week 
basis (even though the lease actually extends beyond four months) is 
not a consumer lease and is not subject to the disclosure requirements 
of the regulation. However, a lease that imposes a penalty for not 
continuing the lease beyond four months is considered to have a term of 
more than four months. To illustrate:
    i. A three-month lease extended on a month-to-month basis and 
terminated after one year is not subject to the regulation.
    ii. A month-to-month lease with a penalty, such as the forfeiture 
of a security deposit for terminating before one year, is subject to 
the regulation.
    3. Total contractual obligation. The total contractual obligation 
is not necessarily the same as the total of payments disclosed under 
Sec.  1013.4(e). The total contractual obligation includes 
nonrefundable amounts a lessee is contractually obligated to pay to the 
lessor, but excludes items such as:
    i. Residual value amounts or purchase-option prices;
    ii. Amounts collected by the lessor but paid to a third party, such 
as taxes, licenses, and registration fees.
    4. Credit sale. The regulation does not cover a lease that meets 
the definition of a credit sale in Regulation Z, 12 CFR 226.2(a)(16), 
which is defined, in part, as a bailment or lease (unless terminable 
without penalty at any time by the consumer) under which the consumer:
    i. Agrees to pay as compensation for use a sum substantially 
equivalent to, or in excess of, the total value of the property and 
services involved; and
    ii. Will become (or has the option to become), for no additional 
consideration or for nominal consideration, the owner of the property 
upon compliance with the agreement.
    5. Agricultural purpose. Agricultural purpose means a purpose 
related to the production, harvest, exhibition, marketing, 
transportation, processing, or manufacture of agricultural products by 
a natural person who cultivates, plants, propagates, or nurtures those 
agricultural products, including but not limited to the acquisition of 
personal property and services used primarily in farming. Agricultural 
products include horticultural, viticultural, and dairy products, 
livestock, wildlife, poultry, bees, forest products, fish and 
shellfish, and any products thereof, including processed and 
manufactured products, and any and all products raised or produced on 
farms and any processed or manufactured products thereof.
    6. Organization or other entity. A consumer lease does not include 
a lease made to an organization such as a corporation or a government 
agency or instrumentality. Such a lease is not covered by the 
regulation even if the leased property is used (by an employee, for 
example) primarily for personal, family or household purposes, or is 
guaranteed by or subsequently assigned to a natural person.
    7. Leases of personal property incidental to a service. The 
following leases of personal property are deemed incidental to a 
service and thus are not subject to the regulation:
    i. Home entertainment systems requiring the consumer to lease 
equipment that enables a television to receive the transmitted 
programming.
    ii. Security alarm systems requiring the installation of leased 
equipment intended to monitor unlawful entries into a home and in some 
cases to provide fire protection.
    iii. Propane gas service where the consumer must lease a propane 
tank to receive the service.
    8. Safe deposit boxes. The lease of a safe deposit box is not a 
consumer lease under Sec.  1013.2(e).
    9. Threshold amount. A consumer lease is exempt from the 
requirements of this part if the total contractual obligation exceeds 
the threshold amount in effect at the time of consummation. The 
threshold amount in effect during a particular time period is the 
amount stated in comment 2(e)-11 for that period. The threshold amount 
is adjusted effective January 1 of each year by any annual percentage 
increase in the Consumer Price Index for Urban Wage Earners and 
Clerical Workers (CPI-W) that was in effect on the preceding June 1. 
Comment 2(e)-11 will be amended to provide the threshold amount for the 
upcoming year after the annual percentage change in the CPI-W that was 
in effect on June 1 becomes available. 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. If a consumer lease is 
exempt from the requirements of this part because the total contractual 
obligation exceeds the threshold amount in effect at the time of 
consummation, the lease remains exempt regardless of a subsequent 
increase in the threshold amount.
    10. No increase in the CPI-W. If the CPI-W in effect on June 1 does 
not increase from the CPI-W in effect on June 1 of the previous year, 
the threshold amount effective the following January 1 through December 
31 will not change from the previous year. When this occurs, for the 
years that follow, the threshold is calculated based on the annual 
percentage change in the CPI-W applied to the dollar amount that would 
have resulted, after rounding, if decreases and any subsequent 
increases in the CPI-W had been taken into account.
    i. Net increases. If the resulting amount calculated, after 
rounding, is greater than the current threshold, then the threshold 
effective January 1 the following year will increase accordingly.
    ii. Net decreases. If the resulting amount calculated, after 
rounding, is equal to or less than the current threshold, then the 
threshold effective January 1 the following year will not change, but 
future increases will be calculated based on the amount that would have 
resulted.
    11. Threshold. For purposes of Sec.  1013.2(e)(1), the threshold 
amount in effect during a particular period is the amount stated below 
for that period.
    i. Prior to July 21, 2011, the threshold amount is $25,000.
    ii. From July 21, 2011 through December 31, 2011, the threshold 
amount is $50,000.
    iii. From January 1, 2012 through December 31, 2012, the threshold 
amount is $51,800.
    iv. From January 1, 2013 through December 31, 2013, the threshold 
amount is $53,000.
    v. From January 1, 2014 through December 31, 2014, the threshold 
amount is $53,500.
    vi. From January 1, 2015 through December 31, 2015, the threshold 
amount is $54,600.
    vii. From January 1, 2016 through December 31, 2016, the threshold 
amount is $54,600.
    viii. From January 1, 2017 through December 31, 2017, the threshold 
amount is $54,600.
    ix. From January 1, 2018 through December 31, 2018, the threshold 
amount is $55,800.
    x. From January 1, 2019 through December 31, 2019, the threshold 
amount is $57,200.
    xi. From January 1, 2020 through December 31, 2020, the threshold 
amount is $58,300.
    xii. From January 1, 2021 through December 31, 2021, the threshold 
amount is $58,300.

[[Page 63671]]

    xiii. From January 1, 2022 through December 31, 2022, the threshold 
amount is $61,000.
    xiv. From January 1, 2023 through December 31, 2023, the threshold 
amount is $66,400.
* * * * *

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority.
Ann E. Misback,
Secretary of the Board.
Grace Feola,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2022-22818 Filed 10-19-22; 8:45 am]
BILLING CODE 6210-01-4810-AM-P