Notice2024-16970
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
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Published
August 1, 2024
Issuing agencies
Federal Trade Commission
Abstract
In accordance with the Paperwork Reduction Act of 1995 (PRA), the Federal Trade Commission (FTC or Commission) is seeking public comment on its proposal to extend for an additional three years the Office of Management and Budget (OMB) clearances for information collection requirements in Regulations B, E, M, and Z, which are enforced by the Commission. These clearances expire on November 30, 2024.
Full Text
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<title>Federal Register, Volume 89 Issue 148 (Thursday, August 1, 2024)</title>
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[Federal Register Volume 89, Number 148 (Thursday, August 1, 2024)]
[Notices]
[Pages 62736-62745]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-16970]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission.
ACTION: Notice.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995 (PRA),
the Federal Trade Commission (FTC or Commission) is seeking public
comment on its proposal to extend for an additional three years the
Office of Management and Budget (OMB) clearances for information
collection requirements in Regulations B, E, M, and Z, which are
enforced by the Commission. These clearances expire on November 30,
2024.
DATES: Comments must be filed by September 30, 2024.
ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Regs BEMZ, PRA
Comment, P085405,'' on your comment, and file your comment online at
<a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the instructions on the web-
based form. If you prefer to file your comment on paper, mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Carole Reynolds or Stephanie
Rosenthal, Attorneys, Division of Financial Practices, Bureau of
Consumer Protection, Federal Trade Commission, (202) 326-3224,
<a href="/cdn-cgi/l/email-protection#751607100c1b1a191106351301165b121a03"><span class="__cf_email__" data-cfemail="b7d4c5d2ced9d8dbd3c4f7d1c3d499d0d8c1">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#1f6c6d706c7a716b777e735f796b7c31787069"><span class="__cf_email__" data-cfemail="7f0c0d100c1a110b171e133f190b1c51181009">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: As required by section 3506(c)(2)(A) of the
PRA, 44 U.S.C. 3506(c)(2)(A), the FTC is providing this opportunity for
public comment before requesting that OMB extend the existing clearance
for the information collection requirements contained in the four rules
covered by this notice. The four regulations are:
(1) Regulations promulgated under the Equal Credit Opportunity Act,
15 U.S.C. 1691 et seq. (ECOA) (Regulation B) (OMB Control Number: 3084-
0087);
(2) Regulations promulgated under the Electronic Fund Transfer Act,
15 U.S.C. 1693 et seq. (EFTA) (Regulation E) (OMB Control Number: 3084-
0085);
(3) Regulations promulgated under the Consumer Leasing Act, 15
U.S.C. 1667 et seq. (CLA) (Regulation M) (OMB Control Number: 3084-
0086); and
(4) Regulations promulgated under the Truth-In-Lending Act, 15
U.S.C. 1601 et seq. (TILA) (Regulation Z) (OMB Control Number: 3084-
0088).
Type of Review: Extension without change of currently approved
collections, except for new Regulation B requirements, which derive
from statutory amendments.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Discussion:
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act), Public Law 111-203, 124 Stat. 1376 (2010), almost all
rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred from
the Board of Governors of the Federal Reserve System (Board) to the
Consumer Financial Protection Bureau (CFPB) on July 21, 2011 (transfer
date). To implement this transferred authority, the CFPB published new
regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005
(Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR part 1026
(Regulation Z) for those entities under its rulemaking jurisdiction.\1\
Although the Dodd-Frank Act transferred most rulemaking authority under
ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking
authority for certain motor vehicle dealers \2\ under all of these
[[Page 62737]]
statutes and also for certain interchange-related requirements under
EFTA.\3\
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\1\ 12 CFR 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12 CFR
1005 (Reg. E) (81 FR 25323, Apr. 28, 2016); 12 CFR 1013 (Reg. M) (81
FR 25323, Apr. 28, 2016); and 12 CFR 1026 (Reg. Z) (81 FR 25323,
Apr. 28, 2016).
\2\ Generally, these are dealers ``predominantly engaged in the
sale and servicing of motor vehicles, the leasing and servicing of
motor vehicles, or both.'' See Dodd-Frank Act, sec. 1029, 12 U.S.C.
5519(a), (c).
\3\ See Dodd-Frank Act, sec. 1075, 15 U.S.C. 1693 (these
requirements are implemented through Board Regulation II, 12 CFR pt.
235, rather than EFTA's implementing Regulation E).
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As a result of the Dodd-Frank Act, the FTC and the CFPB generally
share the authority to enforce Regulations B, E, M, and Z for entities
for which the FTC had enforcement authority before the Act, except for
certain motor vehicle dealers.\4\ Because of this shared enforcement
jurisdiction, the two agencies have relied on the previously-cleared
PRA burden estimates between them,\5\ except that the FTC generally has
assumed all of the burden estimates associated with motor vehicle
dealers \6\ and state-chartered credit unions, and has added estimates
for the CFPB's new requirements under Regulation B. The PRA burden
hours not attributable to motor vehicle dealers and, as applicable, to
state-chartered credit unions is reflected in the CFPB's PRA clearance
requests to OMB, as well as in the FTC's burden estimates below.
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\4\ The FTC's enforcement authority includes state-chartered
credit unions; other federal agencies also have various enforcement
authority over credit unions. For example, for large credit unions
(exceeding $10 billion in assets), the CFPB has certain authority.
The National Credit Union Administration also has certain authority
for state-chartered federally insured credit unions, and it
additionally provides insurance for certain state-chartered credit
unions through the National Credit Union Share Insurance Fund and
examines credit unions for various purposes. There are approximately
thirteen state-chartered credit unions exceeding $10 billion in
assets, and the CFPB assumes PRA burden for those entities. As of
the fourth quarter of 2023, there were approximately 1,936 state-
chartered credit unions with federal insurance; there also have been
an estimated 112 or more which were privately insured, and an
estimated 100 or more in Puerto Rico which were insured by a quasi-
governmental entity. Because of the difficulty in parsing out PRA
burden for such entities in view of the overlapping authority, the
FTC's figures include PRA burden for all state-chartered credit
unions, unless otherwise noted. However, in view of fluctuations
that began due to COVID-19 and have continued and to avoid
undercounting, we have retained the prior estimate of 2,300 state-
chartered credit unions, unless otherwise stated. As noted above,
the CFPB's figures as to state-chartered credit unions include
burden for those entities exceeding $10 billion in assets. See
generally Dodd-Frank Act, secs. 1061, 1025, 1026. This attribution
does not change actual enforcement authority. We also have retained
the prior burden hours generally in the estimates below, in view of
these considerations, adding only those applicable for new
requirements issued by the CFPB for Regulation B, issued in
implementation of the Dodd-Frank Act, sec. 1071, amending the Equal
Credit Opportunity Act, codified at 15 U.S.C. 1691c-2, discussed
below.
\5\ The CFPB also factors into its burden estimates respondents
over which it has jurisdiction but the FTC does not.
\6\ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), as limited
by subsection (b) as to motor vehicle dealers. Subsection (b) does
not preclude CFPB regulatory oversight regarding, among others,
businesses that extend retail credit or retail leases for motor
vehicles in which the credit or lease offered is provided directly
from those businesses, rather than unaffiliated third parties, to
consumers. It is not practicable, however, for PRA purposes, to
estimate the portion of dealers that engage in one form of financing
versus another (and that would or would not be subject to CFPB
oversight). Thus, FTC staff's PRA burden analysis reflects a general
estimated volume of motor vehicle dealers. This attribution does not
change actual enforcement authority.
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Pursuant to the Dodd-Frank Act, the FTC generally has sole
authority to enforce Regulations B, E, M, and Z regarding certain motor
vehicle dealers predominantly engaged in the sale and servicing of
motor vehicles, the leasing and servicing of motor vehicles, or both,
that, among other things, assign their contracts to unaffiliated third
parties.\7\ Because the FTC has exclusive jurisdiction to enforce these
rules for such motor vehicle dealers and retains its concurrent
authority with the CFPB for other types of motor vehicle dealers, and
in view of the different types of motor vehicle dealers, the FTC
retains the entire PRA burden for motor vehicle dealers in the burden
estimates below.
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\7\ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), (c).
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The regulations impose certain recordkeeping and disclosure
requirements associated with providing credit or with other financial
transactions. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must
get OMB approval for each collection of information they conduct or
sponsor. ``Collection of information'' includes agency requests or
requirements to submit reports, keep records, or provide information to
a third party. See 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
All four of these regulations require covered entities to keep
certain records, but FTC staff believes these records are kept in the
normal course of business even absent the particular recordkeeping
requirements.\8\ Covered entities, however, may incur some burden
associated with ensuring that they do not prematurely dispose of
relevant records (i.e., during the time span they must retain records
under the applicable regulation).
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\8\ PRA ``burden'' does not include ``time, effort, and
financial resources'' expended in the normal course of business,
regardless of any regulatory requirement. See 5 CFR 1320.3(b)(2).
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The regulations also require covered entities to make disclosures
to third parties. Related compliance involves set-up/monitoring and
transaction-specific costs. ``Set-up'' burden, incurred only by covered
new entrants, includes identifying the applicable required disclosures,
determining how best to comply, and designing and developing compliance
systems and procedures. ``Monitoring'' burden, incurred by all covered
entities, includes their time and costs to review changes to regulatory
requirements, make necessary revisions to compliance systems and
procedures, and to monitor the ongoing operation of systems and
procedures to ensure continued compliance. ``Transaction-related''
burden refers to the time and cost associated with providing the
various required disclosures in individual transactions, thus,
generally, of much lesser magnitude than ``setup'' and ``monitoring''
burden. The FTC's estimates of transaction time and volume are intended
as averages. The population of affected motor vehicle dealers is one
component of a much larger universe of such entities.
The required disclosures do not impose PRA burden on some covered
entities because they make those disclosures in the normal course of
business. For other covered entities that do not, their compliance
burden will vary depending on the extent to which they have developed
effective computer-based or electronic systems and procedures to
communicate and document required disclosures.\9\
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\9\ For example, large companies may use computer-based and/or
electronic means to provide required disclosures, including issuing
some disclosures en masse, e.g., notice of changes in terms. Smaller
companies may have less automated compliance systems but may
nonetheless rely on electronic mechanisms for disclosures and
recordkeeping. Regardless of size, some entities may utilize
compliance systems that are fully integrated into their general
business operational system; if so, they may have minimal additional
burden. Other entities may have incorporated fewer of these
approaches into their systems and thus may have a higher burden.
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The respondents included in the following burden calculations
consist of, among others, credit and lease advertisers, creditors,
owners (such as purchasers and assignees) of credit obligations,
financial institutions, service providers, certain government agencies
and others involved in delivering electronic fund transfers (EFTs) of
government benefits, and lessors.\10\ The burden estimates represent
FTC staff's best assessment, based on its knowledge and expertise
relating to the financial services industry, of the average time to
complete the aforementioned tasks associated with recordkeeping and
disclosure. Staff considered the wide variations in covered entities'
(1) size and location; (2) credit or lease products offered, extended,
or advertised, and their particular terms; (3) EFT types
[[Page 62738]]
used; (4) types and frequency of adverse actions taken; (5) types of
appraisal reports utilized; and (6) computer systems and electronic
features of compliance operations.
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\10\ The Commission generally does not have jurisdiction over
banks, thrifts, and federal credit unions under the applicable
regulations.
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The cost estimates that follow relate solely to labor costs, and
they include the time necessary to train employees how to comply with
the regulations. Staff calculated labor costs by multiplying
appropriate hourly wages by the burden hours described above. The
hourly wages used were $66 for managerial oversight, $47 for skilled
technical services, and $22 for clerical work. These figures are
averages drawn from Bureau of Labor Statistics data.\11\ Further, these
cost estimates assume the following labor category apportionments,
except where otherwise indicated below: recordkeeping--10% skilled
technical, 90% clerical; disclosure--10% managerial, 90% skilled
technical.
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\11\ These inputs are based broadly on mean hourly data found
within the ``Bureau of Labor Statistics, Economic News Release,''
April 3, 2024, Table 1, ``National employment and wage data from the
Occupational Employment and Wage Statistics survey by occupation,
May 2023.'' <a href="https://www.bls.gov/news.release/ocwage.t01.htm">https://www.bls.gov/news.release/ocwage.t01.htm</a>.
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The applicable PRA requirements impose minimal capital or other
non-labor costs.\12\ Affected entities generally already have or obtain
the necessary equipment (including technology) for other business
purposes. Similarly, FTC staff estimates that compliance with these
rules entails minimal printing and copying costs beyond that associated
with documenting financial transactions in the normal course of
business.
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\12\ To the extent that entities subject to the regulations
update or implement their data systems with additional features,
these serve multiple business purposes associated with financial
transactions and related activities, including, for example,
compliance with diverse state requirements.
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The following discussion and tables present estimates under the PRA
of recordkeeping and disclosure average time and labor costs, excluding
that which FTC staff believes entities incur customarily in the normal
course of business and information compiled and produced in response to
FTC law enforcement investigations or prosecutions.\13\
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\13\ See 5 CFR 1320.4(a) (excluding information collected in
response to, among other things, a federal civil action or ``during
the conduct of an administrative action, investigation, or audit
involving an agency against specific individuals or entities'').
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1. Regulation B
The ECOA (Equal Credit Opportunity Act) prohibits discrimination in
the extension of credit. Regulation B implements the ECOA, establishing
disclosure requirements to assist customers in understanding their
rights under the ECOA, recordkeeping requirements to assist agencies in
enforcement, and monitoring and reporting requirements. Regulation B
applies to retailers, mortgage lenders, mortgage brokers, finance
companies, and diverse others. In 2023, the CFPB amended Regulation B,
to create subparts A and B, in implementing amendments mandated by the
Section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c-2, pertaining to
small business lending, including for small businesses owned by women
or minorities.\14\ As a result, Regulation B, Subpart A, now contains
the prior Regulation B requirements; Regulation B, Subpart B, contains
the new small business lending requirements.\15\
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\14\ See CFPB, Final Rule, Small Business Lending Under the
Equal Credit Opportunity Act (Regulation B) (CFPB Rule), 88 FR 35150
(May 31, 2023), available at <a href="https://www.govinfo.gov/content/pkg/FR-2023-05-31/pdf/2023-07230.pdf">https://www.govinfo.gov/content/pkg/FR-2023-05-31/pdf/2023-07230.pdf</a>. The CFPB generally refers to these
requirements as those pertaining to ``small business lending.'' See
CFPB Rule, 88 FR at 35150. That term is also used herein.
The Federal Reserve Board has not issued its related rule for
these requirements covering certain motor vehicle dealers pursuant
to the Dodd Frank Act, Section 1029, 12 U.S.C. 5519. In May 2024,
following the U.S. Supreme Court ruling in Consumer Fin. Protection
Bureau v. Community Fin. Servs. Ass'n of Am., Ltd. (CFPB v. CFSA),
No. 22-448, 2024 WL 2193873 (U.S.S.C. May 16, 2024), available at
<a href="https://www.supremecourt.gov/opinions/23pdf/22-448_o7jp.pdf">https://www.supremecourt.gov/opinions/23pdf/22-448_o7jp.pdf</a>, the
CFPB issued informal guidance extending the compliance dates for the
small business lending rule and indicated it would issue an interim
final rule; on June 25, 2024, the CFPB issued an interim final rule,
extending the compliance dates accordingly. See CFPB, Small Business
Lending Rulemaking, available at <a href="https://www.consumerfinance.gov/1071-rule/">https://www.consumerfinance.gov/1071-rule/</a>. The FTC has hereunder included estimates of burden for
these requirements, based on currently available information,
including the supplementary information with the CFPB Rule, 88 FR
35150, and its related CFPB Supporting Statement.
\15\ In implementing Regulation B, Subpart B, the CFPB noted
that merchant cash advances are covered under that part, and are
``credit'' subject to Regulation B (and ECOA). See, e.g., 88 FR
35223. When applicable, these entities (to the extent they are
``creditors'' under Subpart A) also apparently would be subject to,
for example, the requirement to provide notices whenever they take
adverse action, such as denial of a credit application. The CFPB
estimates about 100 merchant cash advance providers as active in the
small business lending market. See CFPB Rule, 88 FR 35164. The FTC
estimates below cover those providers as ``creditors'' for Subpart A
and re applicable transactions. As noted above, in view of
fluctuations that occurred with COVID-19 and have continued (and
with respect to which the Commission did not reduce its prior burden
estimates to avoid undercounting, despite varied market contractions
and shifts), these entities are included within the burden estimates
below.
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FTC staff estimates that Regulation B, subpart A general
recordkeeping requirements affect 530,762 credit firms subject to the
Commission's jurisdiction, at an average annual burden of 1.25 hours
per firm for a total of 663,453 hours. Staff also estimates that the
requirement that mortgage creditors monitor information about race/
national origin, sex, age, and marital status imposes a maximum burden
of one minute each (of skilled technical time) for approximately 2.6
million credit applications (based on industry data regarding the
approximate number of mortgage purchase and refinance originations),
for a total of 43,333 hours.\16\ Staff also estimates that
recordkeeping of self-testing subject to the regulation would affect
1,500 firms, with an average annual burden of one hour (of skilled
technical time) per firm, for a total of 1,500 hours, and that
recordkeeping of any corrective action as a result of self-testing
would affect 10% of them, i.e., 150 firms, with an average annual
burden of four hours (of skilled technical time) per firm, for a total
of 600 hours.\17\ This is a total of 708,886 hours for Subpart A.
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\16\ Regulation B contains model forms that creditors may use to
gather and retain the required information.
\17\ In contrast to banks, for example, entities under FTC
jurisdiction are not subject to audits by the FTC for compliance
with Regulation B; rather they may be subject to FTC investigations
and enforcement actions. This may impact the level of self-testing
(as specifically defined by Regulation B) in a given year, and staff
has sought to address such factors in its burden estimates.
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Regulation B, Subpart B, also requires recordkeeping for its data
requirements. Staff estimates that these requirements affect 681
covered financial institutions subject to the Commission's
jurisdiction, at an average annual burden of 32 hours per firm for 24
Type A entities (state-chartered credit unions), 68 hours per firm for
553 Type B entities (520 non-depositories plus 33 state-chartered
credit unions) and 5,280 hours per firm for 104 entities (100 non-
depositories plus 4 state-chartered credit unions), for a total of
587,492 recordkeeping hours for Subpart B.\18\
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\18\ A financial institution is covered by Regulation B, Subpart
B, if it originates at least 100 covered credit transactions for
small businesses in each of the two preceding calendar years (once
the compliance date takes effect). A ``covered credit transaction''
is one that meets the definition of business credit under Regulation
B (as it existed before the small business lending amendments), with
some exceptions, and includes, for example, loans, lines of credit,
merchant cash advances and others. See generally 12 CFR 1002.104 and
1002.105; CFPB Rule, 88 FR 35150. Burden hours for entities vary
depending on the level of complexity of their transactions and
procedures.
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This yields a total annual recordkeeping burden of 1,296,378 hours
for Regulation B, Subparts A and B.
Regulation B, Subpart A, requires that creditors (i.e., entities
that regularly
[[Page 62739]]
participate in the decision whether to extend credit under Regulation
B) provide notices whenever they take adverse action, such as denial of
a credit application. It requires entities that extend mortgage credit
with first liens to provide a copy of the appraisal report or other
written valuation to applicants.\19\ Regulation B, Subpart A, also
requires that for accounts that spouses may use or for which they are
contractually liable, creditors who report credit history must do so in
a manner reflecting both spouses' participation. Further, it requires
creditors that collect applicant characteristics for purposes of
conducting a self-test to disclose to those applicants that: (1)
providing the information is optional; (2) the creditor will not take
the information into account in any aspect of the credit transactions;
and (3) if applicable, the information will be noted by visual
observation or surname if the applicant chooses not to provide it.\20\
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\19\ While the rule also requires the creditor to provide a
short written disclosure regarding the appraisal process, the
disclosure is provided by the CFPB, and is thus not a ``collection
of information'' for PRA purposes. Accordingly, it is not included
in burden estimates below.
\20\ The disclosure may be provided orally or in writing. The
model form provided by Regulation B assists creditors in providing
the written disclosure.
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Regulation B, Subpart B requires covered financial institutions to
collect and report annually to the CFPB various data on covered
applications for covered credit transactions from small businesses,
including those owned by women or minorities--which, among other
things, generally involves entities with a gross annual revenue for the
preceding fiscal year of $5 million or less. It covers credit such as
loans, lines of credit, credit cards, merchant cash advances, and
various other credit products. Collection and reporting to the CFPB
follows procedures established under the regulation and certain data
points.\21\ The burden hours below are based on those for DIs (state
chartered credit unions, which are considered depository institutions,
under the rule) and non-DIs (all other entities), and whether the
applicable respondents are Type A, B, or C entities under the rule.\22\
Staff estimates that the reporting requirements (which under the rule
include that for collection of data) for Regulation B, subpart B,
involve both one-time and ongoing burden. Burden estimates relating to
the disclosures required under Regulation B, Subpart A, and reporting
required under Regulation B, subpart B, and labor cost estimates for
Subparts A and B are provided in the tables below.
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\21\ In addition to certain information related to the financial
institution, such as a unique identifier and its name and address,
these data points include, for example, the application date,
application method, application recipient, credit type and credit
purpose, amount applied for and amount approved or originated,
action taken and date, denial reasons, pricing information, census
tract, and other items, as well as certain demographics of
applicants' ownership (including whether the applicant is a
minority-owned business or women-owned business, whether the
applicant is an LBGTQ+-owned business, and the ethnicity, race, and
sex of the applicant's principal owners). See generally 12 CFR
1002.107 and 1002.109; CFPB Rule, 88 FR 35150. The CFPB has provided
a sample data collection form, which is voluntary, that financial
institutions may use for data collection and reporting; in the
alternative, they could use their own form that complies with the
requirements. See 12 CFR part 1002, Appendix E. Although financial
institutions must request the various information specified in the
rule, small business entities need not provide it.
In a few instances, Subpart B includes certain notices for
financial institutions to provide to consumers in conjunction with
the data collection and reporting. These notices are provided by the
CFPB for the financial institution and are included within the
reporting estimates (and are not separate collections of
information). The first two notices pertain to information being
requested by the financial institution. See 12 CFR 1002.107(a)(18) &
(19) (that the financial institution cannot discriminate on the
basis of minority-owned, women-owned, or LGBTQI+-owned business
status, on the basis of a principal owner's ethnicity, race, or sex,
or on whether the applicant provides any of this information, when
the financial institution requests that information); and
1002.108(c) & (d) (a financial institution could establish a
``firewall'' so that employees and certain other persons cannot
access certain protected financial information of the applicants but
if it doesn't, the financial institution would instead notify small
business entities when collecting information that certain employees
or persons can access the demographic information provided). The
above notices are included on the CFPB's data collection form.
Additionally, these notices can be combined together (if the
financial institution chooses to use its own form), and/or can be
oral depending on the circumstances (including for in-person, oral,
or telephone applications). The CFPB also has provided the third
notice referenced above. See 12 CFR 1002.110(c) & (d), and
1002.110(c)-1, Supp. 1, Regulation B Official Staff Commentary (a
notice for the financial institution's website or otherwise upon
request, that the financial institution's data is available from the
CFPB). These notices are encompassed within the reporting
requirements of the rule.
\22\ Under the CFPB rule: Type A entities have the lowest level
of complexity, and are estimated to originate less than 150 covered
applications annually; Type B entities have a mid-level of
complexity, and are estimated to originate 150-999 covered
applications annually; and Type C entities have the highest level of
complexity, and are estimated to originate 1000 or more covered
applications annually. See CFPB Rule, 88 FR 35496-97.
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Burden Totals
Recordkeeping: 1,296,378 annual hours; $32,783,491, associated
annual labor costs.
Disclosures and Reporting: 2,581,114 annual hours; $126,216,566,
associated annual labor costs.
Regulation B, Subpart A: Disclosures--Burden Hours
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Setup/monitoring \1\ Transaction-related
------------------------------------------------------------------------------------------------
Average burden Total burden
Disclosures Average burden Total setup/ Number of per Total (hours)
Respondents per respondent monitoring transactions transaction transaction
(hours) burden (hours) (minutes) burden (hours)
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Credit history reporting................ 133,553 .25 33,388 60,098,850 .25 250,412 283,800
Adverse action notices.................. 530,762 .75 398,072 92,883,350 .25 387,014 785,086
Appraisal reports/written valuations.... 4,650 1 4,650 1,725,150 .50 14,376 19,026
Self-test disclosures................... 1,500 .5 750 60,000 .25 250 1,000
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Total............................... .............. .............. .............. .............. .............. .............. 1,088,912
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\1\ The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations.
[[Page 62740]]
Regulation B, Subpart B: Reporting (Setup/One-Time)--Burden Hours
----------------------------------------------------------------------------------------------------------------
Setup/one-time for reporting \1\
-----------------------------------------------
Reporting Average burden Total setup
Respondents per respondent for reporting
(hours) burden (hours)
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Type A DIs...................................................... 24 273 6,552
Type B DIs...................................................... 33 176 5,808
Type C DIs...................................................... 4 503 2,012
All Non DIs..................................................... 620 253 156,860
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Total....................................................... .............. .............. 171,232
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\1\ The estimates assume that all applicable entities would be affected.
Regulation B, Subpart B: Reporting (Ongoing)--Burden Hours
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Ongoing for reporting \1\
-----------------------------------------------
Reporting Average burden Total
Respondents per respondent reporting
(hours) burden (hours)
----------------------------------------------------------------------------------------------------------------
Type A DIs...................................................... 24 112 2,688
Type B DIs...................................................... 33 658 21,714
Type C DIs...................................................... 4 9,177 36,708
Type B Non DIs.................................................. 520 658 342,160
Type C Non-DIs.................................................. 100 .9,177 917,700
-----------------------------------------------
Total....................................................... .............. .............. 1,320,970
----------------------------------------------------------------------------------------------------------------
\1\ The estimates assume that all applicable entities would be affected.
Regulation B, Subpart A: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General recordkeeping................... 0 $0 66,345 $3,118,215 597,108 $13,136,376 $16,254,591
Other recordkeeping..................... 0 0 43,333 2,036,651 0 0 2,036,651
Recordkeeping of self-test.............. 0 0 1,500 70,500 0 0 70,500
Recordkeeping of corrective action...... 0 0 600 28,200 0 0 28.200
---------------------------------------------------------------------------------------------------------------
Total Recordkeeping................. .............. .............. .............. .............. .............. .............. 18,389,942
--------------------------------------------------------------------------------------------------------------------------------------------------------
Disclosures:
Credit history reporting............ 28,380 1,873,080 255,420 12,004,740 0 0 13,877,820
Adverse action notices.............. 78,509 5,181,594 706,577 33,209,199 0 0 38,390,793
Appraisal reports................... 1,903 125,598 17,123 804,781 0 0 930,379
Self-test disclosure................ 100 6,600 900 42,300 0 0 48,900
---------------------------------------------------------------------------------------------------------------
Total Disclosures............... .............. .............. .............. .............. .............. .............. 53,247,892
Total Recordkeeping and .............. .............. .............. .............. .............. .............. 71,637,834
Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation B, Subpart B: Recordkeeping and Reporting--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping........................... 0 $0 58,749 $2,761,203 528,743 $11,632,346 $14,393,549
---------------------------------------------------------------------------------------------------------------
Total Recordkeeping................. .............. .............. .............. .............. .............. .............. 14,393,549
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reporting:
One-time............................ 17,123 1,130,118 154,109 7,243,123 0 0 8,373,241
Ongoing............................. 132,097 8,718,402 1,188,873 55,877,031 0 0 64,595,433
---------------------------------------------------------------------------------------------------------------
Total Reporting................. .............. .............. .............. .............. .............. .............. 72,968,674
Total Recordkeeping and .............. .............. .............. .............. .............. .............. 87,362,223
Reporting..................
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 62741]]
Regulation B, Subparts A and B: Recordkeeping, Disclosures and Reporting--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Recordkeeping, Disclosures and .............. .............. .............. .............. .............. .............. 159,000,057
Reporting..............................
--------------------------------------------------------------------------------------------------------------------------------------------------------
2. Regulation E
The EFTA (Electronic Fund Transfer Act) requires that covered
entities provide consumers with accurate disclosure of the costs,
terms, and rights relating to EFT and certain other services.
Regulation E implements the EFTA, establishing disclosure and other
requirements to aid consumers and recordkeeping requirements to assist
agencies with enforcement. It applies to financial institutions,
retailers, gift card issuers and others that provide gift cards,
service providers, various federal and state agencies offering EFTs,
prepaid account entities, etc. Staff estimates that Regulation E's
recordkeeping requirements affect 251,053 firms offering EFT and
certain other services to consumers and that are subject to the
Commission's jurisdiction, at an average annual burden of one hour per
firm, for a total of 251,053 hours. Burden estimates relating to the
disclosures required under Regulation E and labor cost estimates are
provided in the tables below.
Burden Totals
Recordkeeping: 251,053 annual hours; $6,150,791, associated annual
labor costs.
Disclosures: 7,184,903 annual hours; $357,041,764, associated
annual labor costs.
Regulation E--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/monitoring Transaction-related
------------------------------------------------------------------------------------------------
Average burden Total burden
Disclosures Average burden Total setup/ Number of per Total (hours)
Respondents per respondent monitoring transactions transaction transaction
(hours) burden (hours) (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial terms........................... 27,300 .5 13,650 273,000 .02 91 13,741
Change in terms......................... 8,550 .5 4,275 11,286,000 .02 3,762 8,037
Periodic statements..................... 27,300 .5 13,650 327,600,000 .02 109,200 122,850
Error resolution........................ 27,300 .5 13,650 273,000 5 22,750 36,400
Transaction receipts.................... 27,300 .5 13,650 1,375,000,000 .02 458,333 471,983
Preauthorized transfers................. 258,553 .5 129,277 6,463,825 .25 26,933 156,210
Service provider notices................ 20,000 .25 5,000 200,000 .25 833 5,833
ATM notices............................. 125 .25 31 25,000,000 .25 104,167 104,198
Electronic check conversion............. 48,553 .5 24,277 728,295 .02 243 24,520
Overdraft services...................... 15,000 .5 7,500 1,500,000 .02 500 8,000
Gift cards.............................. 15,000 .5 7,500 750,000,000 .02 250,000 257,500
Remittance transfers:
Disclosures......................... 4,800 1.25 6,000 96,000,000 .9 1,440,000 1,446,000
Error resolution.................... 4,800 1.25 6,000 120,960,000 .9 1,814,400 1,820,400
Agent compliance.................... 4,800 1.25 6,000 96,000,000 .9 1,440,000 1,446,000
Prepaid accounts and gov't benefits:
Disclosures......................... 550 \1\ 40 x 10 220,000 2,750,000,000 .02 916,667 1,136,667
Disclosures--updates................ 138 1 x 10 \2\ 1,380 N/A .............. .............. 1,380
Access to account information....... 550 \3\ 20 x 10 110,000 1,100,000 .01 183 110,183
Error resolution.................... 300 4 x 4 4,800 275,000 2 9,167 13,967
Error resolution--followup \4\...... .............. N/A .............. 1,380 30 690 690
Submission of agreements............ 138 2 x 1 276 690 1 11 287
Updates to agreements \5\........... .............. N/A .............. 690 5 57 57
---------------------------------------------------------------------------------------------------------------
Total........................... .............. .............. .............. .............. .............. .............. 7,184,903
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\2\ Individual burden hours are listed first, followed by the number of programs.
\3\ Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs.
\4\ This pertains to prepaid accounts.
\5\ This pertains to prepaid accounts' agreements.
Regulation E--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping........................... 0 $0 25,105 $1,179,935 225,948 $4,970,856 $6,150,791
Disclosures:
Initial terms....................... 1,374 90,684 12,367 581,249 0 0 671,933
Change in terms..................... 804 53,064 7,233 339,951 0 0 393,015
Periodic statements................. 12,285 810,810 110,565 5,196,555 0 0 6,007,365
Error resolution.................... 3,640 240,240 32,760 1,539,720 0 0 1,779,960
Transaction receipts................ 47,198 3,115,068 424,785 19,964,895 0 0 23,079,963
Preauthorized transfers............. 15,621 1,030,986 140,589 6,607,683 0 0 7,638,669
Service provider notices............ 583 38,478 5,250 246,750 0 0 285,228
ATM notices......................... 10,420 687,720 93,778 4,407,566 0 0 5,095,286
Electronic check conversion......... 2,452 161,832 22,068 1,037,096 0 0 1,198,928
[[Page 62742]]
Overdraft services.................. 800 52,800 7,200 338,400 0 0 391,200
Gift cards.......................... 25,750 1,699,500 231,750 10,892,250 0 0 12,591,750
Remittance transfers:
Disclosures......................... 144,600 9,543,600 1,301,400 61,165,800 0 0 70,709,400
Error resolution.................... 182,040 12,014,640 1,638,360 77,002,920 0 0 89,017,560
Agent compliance.................... 144,600 9,543,600 1,301,400 61,165,800 0 0 70,709,400
Prepaid accounts and gov't. benefits:
Disclosures......................... 113,667 7,502,022 1,023,000 48,081,000 0 0 55,583,022
Disclosures--updates................ 138 9,108 1,242 58,374 0 0 67,482
Access to account information....... 11,018 727,188 99,165 4,660,755 0 0 5,387,943
Error resolution.................... 1,397 92,202 12,570 590,790 0 0 6,382,992
Error resolution--follow-up......... 69 4,554 621 29,187 0 0 33,741
Submission of agreements............ 29 1,9,14 259 12,173 0 0 14,087
Updates to agreements............... 6 396 52 2,444 0 0 2,840
---------------------------------------------------------------------------------------------------------------
Total Disclosures............... .............. .............. .............. .............. .............. .............. 357,041,764
Total Recordkeeping and .............. .............. .............. .............. .............. .............. 363,192,555
Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------
3. Regulation M
The CLA (Consumer Leasing Act) requires that covered entities
provide consumers with accurate disclosure of the costs and terms of
leases. Regulation M implements the CLA, establishing disclosure
requirements to help consumers comparison shop and understand the terms
of leases and recordkeeping requirements. It applies to vehicle lessors
(such as auto dealers, independent leasing companies, and
manufacturers' captive finance companies), computer lessors (such as
computer dealers and other retailers), furniture lessors, various
electronic commerce lessors, diverse types of lease advertisers, and
others. Staff estimates that Regulation M's recordkeeping requirements
affect approximately 30,203 firms within the FTC's jurisdiction leasing
products to consumers at an average annual burden of one hour per firm,
for a total of 30,203 hours. Burden estimates relating to the
disclosures required under Regulation M and labor cost estimates are
provided in the tables below.
Burden Totals <SUP>23</SUP>
---------------------------------------------------------------------------
\23\ Recordkeeping and disclosure burden estimates for
Regulation M are more substantial for motor vehicle leases than for
other leases, including burden estimates based on market changes and
regulatory definitions of coverage. Based on industry information,
the estimates for recordkeeping and disclosure costs assume the
following: 90% managerial, and 10% skilled technical. As noted
above, for purposes of PRA burden calculations for Regulations B, E,
M, and Z, and given the different types of motor vehicle dealers,
the FTC is including in its estimates burden for all of them.
---------------------------------------------------------------------------
Recordkeeping: 30,203 annual hours; $1,936,018, associated annual
labor costs.
Disclosures: 71,750 annual hours; $4,599,175, associated annual
labor costs.
Regulation M--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/monitoring Transaction-related
------------------------------------------------------------------------------------------------
Average burden Average burden Total burden
Disclosures per Total setup/ Number of per Total (hours)
Respondents respondents monitoring transactions transaction transaction
(hours) burden (hours) (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Motor Vehicle Leases \1\................ 26,690 1 26,690 4,000,000 .50 33,333 60,023
Other Leases \2\........................ 3,513 .50 1,757 60,000 .25 250 2,007
Advertising............................. 14,615 .50 7,308 578,960 .25 2,412 9,720
---------------------------------------------------------------------------------------------------------------
Total............................... .............. .............. .............. .............. .............. .............. 71,750
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment.
\2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
1013.2(e)(1). CLA and Regulation M now cover leases up to $69,500 plus an annual adjustment.
Regulation M--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled Technical Clerical
------------------------------------------------------------------------------------------------
Required Task Cost ($122/ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping........................... 27,183 $1,794,078 3,020 $141,940 0 0 $1,936,018
Disclosures:
Motor Vehicle Leases................ 54,021 3,565,386 6,002 282,094 0 0 3,847,480
Other Leases........................ 1,806 119,196 201 9,447 0 0 128,643
Advertising......................... 8,748 577,368 972 45,684 0 0 623,052
---------------------------------------------------------------------------------------------------------------
Total Disclosures............... .............. .............. .............. .............. .............. .............. 4,599,175
[[Page 62743]]
Total Recordkeeping and .............. .............. .............. .............. .............. .............. 6,535,193
Disclosures................
--------------------------------------------------------------------------------------------------------------------------------------------------------
4. Regulation Z
The TILA (Truth In Lending Act) was enacted to foster comparison
credit shopping and informed credit decision-making by requiring
creditors and others to provide accurate disclosures regarding the
costs and terms of credit to consumers. Regulation Z implements the
TILA, establishing disclosure requirements to assist consumers and
recordkeeping requirements to assist agencies with enforcement. These
requirements pertain to open-end and closed-end credit and apply to
various types of entities, including mortgage companies; finance
companies; auto dealerships; private education loan companies;
merchants who extend credit for goods or services; credit advertisers;
acquirers of mortgages; and others. Additional requirements also exist
in the mortgage area, including for high cost mortgages, higher-priced
mortgage loans,\24\ ability to pay of mortgage consumers, mortgage
servicing, loan originators, and certain integrated mortgage
disclosures. FTC staff estimates that Regulation Z's recordkeeping
requirements affect approximately 430,762 entities subject to the
Commission's jurisdiction, at an average annual burden of 1.25 hours
per entity with 0.25 additional hours per entity for 3,650 entities
(ability to pay), and 5 additional hours per entity for 4,500 entities
(loan originators). This yields a total annual recordkeeping burden of
561,866 hours. Burden estimates relating to the disclosures required
under Regulation Z and labor cost estimates are provided in the tables
below.
---------------------------------------------------------------------------
\24\ While Regulation Z also requires the creditor to provide a
short written disclosure regarding the appraisal process for higher-
priced mortgage loans, the disclosure is provided by the CFPB. As a
result, it is not a ``collection of information'' for PRA purposes
(see 5 CFR 1320.3(c)(2)). It is thus excluded from the burden
estimates below.
---------------------------------------------------------------------------
Burden Totals
Recordkeeping: 561,866 annual hours; $13,765,727, associated annual
labor costs.
Disclosures: 7,854,575 annual hours; $384,097,822, associated
annual labor costs.
Regulation Z--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/monitoring Transaction-related
---------------------------------------------------------------------------------------------------------------
Average burden
Disclosures \1\ Average burden Total setup/ Number of per Total Total burden
Respondents per respondent monitoring transactions transaction transaction (hours)
(hours) burden (hours) (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
Initial terms....................... 23,650 .75 17,738 10,500,600 .375 65,629 83,367
Initial terms--prepaid accounts..... 3 \2\ 4 x 1 12 \3\ 3 x 78,667 .125 492 504
Rescission notices.................. 750 .5 375 3,750 .25 16 391
Subsequent disclosures.............. 4,650 .75 3,488 23,250,000 .188 72,850 76,338
Subsequent disclosures--prepaid 3 \4\ 4 x 1 12 \5\ 3 x 78,667 .0625 246 258
accounts...........................
Periodic statements................. 23,650 .75 17,738 788,325,450 .0938 1,232,415 1,250,153
Periodic statements--prepaid 3 \6\ 40 x 1 120 \7\ 3 x .03125 1,475 1,595
accounts........................... 944,000
Error resolution.................... 23,650 .75 17,738 2,104,850 6 210,485 228,223
Error resolution--prepaid accounts 3 \8\ 4 x 1 12 \9\ 3 x 1,180 15 885 897
follow-up..........................
Credit and charge card accounts..... 10,250 .75 7,688 5,125,000 .375 32,031 39,719
Credit and charge card accounts-- 3 \10\ 4 x 1 12 \11\ 3 x 12 240 144 156
prepaid accounts...................
Settlement of estate debts.......... 23,650 .75 17,738 496,650 .375 3,104 20,842
Special credit card requirements.... 10,250 .75 7,688 5,125,000 .375 32,031 39,719
Home equity lines of credit......... 750 .5 375 5,250 .25 22 397
Home equity lines of credit high- 250 2 500 1,500 2 50 550
cost mortgages.....................
College student credit card 1,350 .5 675 81,000 .25 338 1,013
marketing--ed. institutions........
College student credit card 150 .75 113 4,500 .75 56 169
marketing--card issuer reports.....
Posting and reporting of credit card 10,250 .75 7,688 5,125,000 .375 32,031 39,719
agreements.........................
Posting and reporting of prepaid 3 \12\.75 x 1 2 \13\ 3 x 5 2.5 1 3
account agreements.................
Advertising......................... 38,650 .75 28,988 115,950 .75 1,449 30,437
Advertising--prepaid accounts....... 3 \14\ 20 x 1 60 N/A .............. .............. 60
Advertising--prepaid accounts 3 \15\ 0.2 x 5 3 N/A .............. .............. 3
Updates............................
Sale, transfer, or assignment of 500 .5 250 500,000 .25 2,083 2,333
mortgages..........................
Appraiser misconduct reporting...... 301,150 .75 225,863 6,023,000 .375 37,644 263,507
Mortgage servicing.................. 1,500 .75 1,125 150,000 .5 1,250 2,375
Loan originators.................... 2,250 2 4,500 22,500 5 1,875 6,375
Closed-end credit:
Credit disclosures.................. 280,762 .75 210,572 112,304,800 2.25 4,211,430 4,422,002
Rescission notices.................. 3,650 .5 1,825 5,475,000 1 91,250 93,075
[[Page 62744]]
Redisclosures....................... 101,150 .5 50,575 505,750 2.25 18,966 69,541
Integrated mortgage disclosures..... 3,650 10 36,500 10,950,000 3.5 638,750 675,250
Variable rate mortgages............. 3,650 1 3,650 365,000 1.75 10,646 14,296
High cost mortgages................. 1,750 1 1,750 43,750 2 1,458 3,208
Higher priced mortgages............. 1,750 1 1,750 14,000 2 467 2,217
Reverse mortgages................... 3,025 .5 1,513 15,125 1 252 1,765
Advertising......................... 205,762 .5 102,881 2,057,620 1 34,294 137,175
Private education loans............. 75 .5 38 30,000 1.5 750 788
Sale, transfer, or assignment of 48,850 .5 24,425 2,442,500 .25 10,177 34,602
mortgages..........................
Ability to pay/qualified mortgage... 3,650 .75 2,738 0 0 0 2,738
Appraiser misconduct reporting...... 301,150 .75 225,863 6,023,000 .375 37,644 263,507
Mortgage servicing.................. 3,650 1.5 5,475 730,000 2.75 33,458 38,933
Loan originators.................... 2,250 2 4,500 22,500 5 1,875 6,375
---------------------------------------------------------------------------------------------------------------
Total open-end credit........... .............. .............. .............. .............. .............. .............. 2,089,103
Total closed-end credit......... .............. .............. .............. .............. .............. .............. 5,765,472
Total credit................ .............. .............. .............. .............. .............. .............. 7,854,575
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $69,500 plus an annual adjustment
(except that real estate credit and private education loans are covered regardless of amount).
\2\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\3\ This figure lists the number of entities followed by the number of responses or programs each.
\4\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\5\ This figure lists the number of entities followed by the number of responses or programs each.
\6\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\7\ This figure lists the number of entities followed by the number of responses or programs each.
\8\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\9\ This figure lists the number of entities followed by the number of responses or programs each.
\10\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\11\ This figure lists the number of entities followed by the number of responses or programs each.
\12\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\13\ This figure lists the number of entities followed by the number of responses or programs each.
\14\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
\15\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.
Regulation Z--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------ Total cost ($)
Time (hours) Cost ($66/hr.) Time (hours) Cost ($47/hr.) Time (hours) Cost ($22/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping........................... 0 $0 56,187 $2,640,789 505,679 $11,124,938 $13,765,727
Open-end credit Disclosures:
Initial terms....................... 8,337 559,242 75,030 3,526,410 0 0 4,085,652
Initial terms--prepaid accounts..... 50 3,300 454 21,338 0 0 24,638
Rescission notices.................. 39 2,574 352 16,544 0 0 19,118
Subsequent disclosures.............. 7,634 503,844 68,704 3,229,088 0 0 3,732,932
Subsequent disclosures--prepaid 26 1,716 232 10,904 0 0 12,620
accounts...........................
Periodic statements................. 125,015 8,250,990 1,125,138 52,881,486 0 0 61,132,476
Periodic statements--prepaid 159 10,494 1,436 67,492 0 0 77,986
accounts...........................
Error resolution.................... 22,822 1,506,252 205,401 9,653,847 0 0 11,160,099
Error resolution--prepaid accounts 90 5,940 807 37,929 0 0 43,869
follow-up..........................
Credit and charge card accounts..... 3,972 262,152 35,747 1,680,109 0 0 1,942,261
Credit and charge card accounts-- 16 1,056 140 6,580 0 0 7,636
prepaid accounts...................
Settlement of estate debts.......... 2,084 137,544 18,758 881,626 0 0 1,019,170
Special credit card requirements.... 3,972 262,152 35,747 1,680,109 0 0 1,942,261
Home equity lines of credit......... 40 2,640 357 16,779 0 0 19,419
Home equity lines of credit--high 55 3,630 495 23,265 0 0 26,895
cost mortgages.....................
College student credit card 101 6,666 912 42,864 0 0 49,530
marketing--ed institutions.........
College student credit card 17 1,122 152 7,144 0 0 8,266
marketing--card issuer reports.....
Posting and reporting of credit card 3,972 262,152 35,747 1,680,109 0 0 1,942,261
agreements.........................
Posting and reporting of prepaid 1 66 2 94 0 0 160
accounts...........................
Advertising......................... 3,044 200,904 27,393 1,287,471 0 0 1,488,375
Advertising--prepaid accounts....... 6 396 54 2,538 0 0 2,934
Advertising--prepaid accounts 1 66 2 94 0 0 160
Updates............................
Sale, transfer, or assignment of 233 15,378 2,100 98,700 0 0 114,078
mortgages..........................
Appraiser misconduct reporting...... 26,351 1,739,166 237,156 11,146.332 0 0 12,885,498
Mortgage servicing.................. 238 15,708 2,137 100,439 0 0 116,147
[[Page 62745]]
Loan originators.................... 638 42,108 5,737 269,639 0 0 311,747
---------------------------------------------------------------------------------------------------------------
Total open-end credit........... .............. .............. .............. .............. .............. .............. 102,166,188
Closed-end credit Disclosures:
Credit disclosures.................. 442,200 29,185,200 3,979,802 187,050,694 0 0 216,235,894
Rescission notices.................. 9,308 614,328 83,767 3,937,049 0 0 4,551,377
Redisclosures....................... 6,954 458,964 62,587 2,941,589 0 0 3,400,553
Integrated mortgage disclosures..... 67,525 4,456,650 607,725 28,563,075 0 0 33,019,725
Variable rate mortgages............. 1,430 94,380 12,866 604,702 0 0 699,082
High cost mortgages................. 321 21.186 2,887 135,689 0 0 156,875
Higher priced mortgages............. 222 14,652 1,995 93,765 0 0 108,417
Reverse mortgages................... 177 11,682 1,588 74,636 0 0 86,318
Advertising......................... 13,718 905,388 123,457 5,802,479 0 0 6,707,867
Private education loans............. 79 5,214 709 33,323 0 0 38,537
Sale, transfer, or assignment of 3,460 228,360 31,142 1,463,674 0 0 1,692,034
mortgages..........................
Ability to pay/qualified mortgage... 274 18,084 2,464 115,808 0 0 133,892
Appraiser misconduct reporting...... 26,351 1,739,166 237,156 11,146,332 0 0 12,885,498
Mortgage servicing.................. 3,893 256,938 35,040 1,646,880 0 0 1,903,818
Loan originators.................... 638 42,108 5,737 269,639 0 0 311,747
---------------------------------------------------------------------------------------------------------------
Total closed-end credit......... .............. .............. .............. .............. .............. .............. 281,931,634
Total Disclosures........... .............. .............. .............. .............. .............. .............. 384,097,822
Total Recordkeeping and .............. .............. .............. .............. .............. .............. 397,863,549
Disclosures............
--------------------------------------------------------------------------------------------------------------------------------------------------------
Request for Comment
Pursuant to section 3506(c)(2)(A) of the PRA, the FTC invites
comments on: (1) whether the disclosure and recordkeeping requirements
are necessary, including whether the information will be practically
useful; (2) the accuracy of our burden estimates, including whether the
methodology and assumptions used are valid; (3) ways to enhance the
quality, utility, and clarity of the information to be collected; and
(4) ways to minimize the burden of the collection of information.
For the FTC to consider a comment, we must receive it on or before
September 30, 2024. Your comment, including your name and your state,
will be placed on the public record of this proceeding, including the
<a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
You can file a comment online or on paper. Due to heightened
security screening, postal mail addressed to the Commission will be
subject to delay. We encourage you to submit your comments online
through the <a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
If you file your comment on paper, write ``Regs BEMZ Rule, PRA
Comment, P085405,'' on your comment and on the envelope, and mail it to
the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J),
Washington, DC 20580. If possible, submit your paper comment to the
Commission by overnight service.
Because your comment will become publicly available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for making sure that
your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including, in particular, competitively sensitive
information, such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must (1) be filed in paper form, (2) be clearly labeled
``Confidential,'' and (3) comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted publicly at <a href="http://www.regulations.gov">www.regulations.gov</a>, we cannot redact or remove
your comment unless you submit a confidentiality request that meets the
requirements for such treatment under FTC Rule 4.9(c), and the General
Counsel grants that request.
The FTC Act and other laws that the Commission administers permit
the collection of public comments to consider and use in this
proceeding as appropriate. The Commission will consider all timely and
responsive public comments that it receives on or before September 30,
2024. For information on the Commission's privacy policy, including
routine uses permitted by the Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2024-16970 Filed 7-31-24; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on August 1, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.