Lending regulations updated in April 2025: what changes?

Understand the loan regulations updated in April 2025

If you’ve ever tried to get a loan, open a line of credit or finance a car, you should know that the process can be a real rollercoaster. And as if all the paperwork and hidden fees weren’t enough, the rules of the game still change from time to time.

Well, April 2025 has arrived bringing a new round of updates to credit regulations and, if you blink, you might end up being caught off guard.

But don’t worry! You don’t need to be a financial expert or spend hours deciphering complicated terms. In this post, you can understand the simple and direct ways to get started and what has changed in the loan rules now in April.

Asset-Size Exemption Thresholds Adjusted

In addition to the above, the asset-size thresholds for certain exemptions have been updated. For instance, creditors and their affiliates with assets less than $2.717 billion are exempt from establishing escrow accounts for higher-priced mortgage loans.

Similarly, certain insured depository institutions and credit unions with assets of $12.179 billion or less also benefit from this exemption.

These adjustments aim to balance regulatory requirements with the operational capacities of smaller financial institutions.​

Overdraft Fees Under Scrutiny

Overdraft fees have long been a point of contention, and recent developments indicate a shift in how they’re handled.

The Biden administration had finalized a rule limiting overdraft fees that banks can charge, aiming to protect consumers from excessive charges.

However, with the change in administration, there’s potential for these regulations to be revisited or rolled back. It’s essential to stay informed about your bank’s policies and any changes that might occur in this area.​

Medical Debt No Longer Affects Credit Scores

In a significant move, the Consumer Financial Protection Bureau (CFPB) has finalized a rule banning medical debt from credit reports.

This change is expected to improve the credit scores of approximately 15 million people, making it easier for them to secure mortgages, loans, or even jobs.

The rationale is that medical debt often arises unexpectedly and doesn’t accurately reflect a person’s creditworthiness.​

Community Reinvestment Act (CRA) Revisions

The Community Reinvestment Act, designed to ensure banks serve low- and moderate-income communities, has seen some back-and-forth changes.

The Biden administration had updated the rules to account for modern banking practices, especially the rise of online banking.

However, these updates faced legal challenges, leading regulators to revert to the 1995 version of the regulations.

This decision has been met with mixed reactions, with some arguing that the older rules are outdated in today’s digital age.​

New transparency requirements for personal loans

One of the most talked-about changes in April 2025 was the update to the transparency rules for personal loans, especially those offered by online platforms or fintech apps.

From now on, lenders are required to show the Total Effective Cost of the Loan much more clearly.

This includes opening fees, compound interest, and hidden monthly fees. Everything must be out in the open, with no small print or tricks.

The idea is simple: if you are going to borrow money, you need to know exactly how much you are going to pay for it, from start to finish.

This avoids those unpleasant surprises in the middle of the contract, when the installment appears higher than expected or when you discover that you are paying for “administrative services” that you never really understood.

In fact, if you usually compare credit offers online, it is worth taking a look at the Consumer Financial Protection Bureau (CFPB) — they are the official agency that monitors and guides financial practices in the USA.

Looking Ahead

While these changes are already in effect, it’s always a good idea to keep an eye on future developments. Regulations can evolve, especially with shifts in political landscapes and economic conditions.

Staying informed will help you navigate the lending environment more effectively and make decisions that align with your financial well-being.​

Remember, while regulations set the framework, your personal financial habits play a crucial role in your overall financial health. Stay proactive, ask questions, and don’t hesitate to seek advice when needed.

Written by

Juliana Raquel