More consumer loans are now exempt from federal truth-in-lending rules

The US central bank and consumer protection agency have raised the threshold for consumer credit transactions that are exempt from federal disclosure rules. This means more loans will not have to follow the "Truth in Lending Act" requirements, which mandate clear disclosure of loan terms.

The Truth in Lending Act requires lenders to clearly disclose interest rates and other costs, making it easier for consumers to compare loan offers. By raising the exemption threshold, a larger number of smaller loans will no longer be subject to these disclosure requirements. This could make it harder for consumers to understand the true cost of these smaller credit products.