There are certain exceptions to the applicability of the Act.[i] The following transactions are exempt from Regulation Z:
- Credit given primarily for a business, commercial, or agricultural purpose;
- Credit extended to any entity other than a natural person (including credit to government agencies or instrumentalities);
- Credit in excess of $25,000 not secured by real property or personal property used or expected to be used as the consumer’s principal dwelling;
- Public utility credit;
- Credit extended by a broker-dealer registered with the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), involving securities or commodities accounts;
- Home fuel budget plans; and
- Certain student loan programs.
However, when a credit card is involved, credit generally exempted (e.g., business purpose credit) is subject to the requirements that govern the issuance of credit cards and liability for their unauthorized use. Credit cards must not be issued on an unsolicited basis and, if a credit card is lost or stolen, the cardholder must not be held liable for more than $50 for the unauthorized use of the card.
[i] 15 USCS Appx 12 CFR § 226.3