Notice2024-27458
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
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Published
November 22, 2024
Issuing agencies
Federal Trade Commission
Abstract
The Federal Trade Commission ("FTC" or "Commission") requests that the Office of Management and Budget ("OMB") extend for three years the current Paperwork Reduction Act ("PRA") clearances for information collection requirements contained in four consumer financial regulations enforced by the Commission. Those clearances expire on November 30, 2024.
Full Text
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<title>Federal Register, Volume 89 Issue 226 (Friday, November 22, 2024)</title>
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[Federal Register Volume 89, Number 226 (Friday, November 22, 2024)]
[Notices]
[Pages 92685-92688]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-27458]
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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: The Federal Trade Commission (``FTC'' or ``Commission'')
requests that the Office of Management and Budget (``OMB'') extend for
three years the current Paperwork Reduction Act (``PRA'') clearances
for information collection requirements contained in four consumer
financial regulations enforced by the Commission. Those clearances
expire on November 30, 2024.
DATES: Comments must be filed by December 23, 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. Written comments and
recommendations for the proposed information collection should be sent
within 30 days of publication of this notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular information collection by selecting
``Currently under 30-day Review--Open
[[Page 92686]]
for Public Comments'' or by using the search function. The <a href="http://reginfo.gov">reginfo.gov</a>
web link is a United States Government website produced by the Office
of Management and Budget (OMB) and the General Services Administration
(GSA). Under PRA requirements, OMB's Office of Information and
Regulatory Affairs (OIRA) reviews Federal information collections.
FOR FURTHER INFORMATION CONTACT: Carole Reynolds (<a href="/cdn-cgi/l/email-protection#3a59485f435455565e497a5c4e59145d554c"><span class="__cf_email__" data-cfemail="2c4f5e4955424340485f6c4a584f024b435a">[email protected]</span></a>) or
Stephanie Rosenthal (<a href="/cdn-cgi/l/email-protection#a2d1d0cdd1c7ccd6cac3cee2c4d6c18cc5cdd4"><span class="__cf_email__" data-cfemail="7300011c00161d071b121f331507105d141c05">[email protected]</span></a>), Attorneys, Division of
Financial Practices, Bureau of Consumer Protection, Federal Trade
Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580, (202) 326-
3224.
SUPPLEMENTARY INFORMATION: The four regulations covered by this notice
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
collection, except for new Regulation B requirements, which derive from
statutory amendments.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Abstract: 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 statutes and also for
certain interchange-related requirements under EFTA.\3\
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\1\ 12 CFR part 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12
CFR part 1005 (Reg. E) (81 FR 25323, Apr. 28, 2016); 12 CFR part
1013 (Reg. M) (81 FR 25323, Apr. 28, 2016); 12 CFR part 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(a), (c), 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
part 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 divided the FTC's previously-
cleared PRA burden estimates between them,\5\ except that the FTC 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 division of PRA
burden hours not attributable to motor vehicle dealers and 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 to motor
vehicle dealers, as limited by subsection (b). 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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1. Regulation B
The ECOA 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 and
recordkeeping requirements to assist agencies in enforcement.
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 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.\8\ As a result,
[[Page 92687]]
Regulation B, subpart A, now contains the prior Regulation B
requirements; Regulation B, subpart B, contains the new small business
lending requirements.\9\ The total burden hours and labor costs for
Regulation B are shown below.
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\8\ 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, sec. 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>; 89 FR 55024 (July 3, 2024), available at <a href="https://www.govinfo.gov/content/pkg/FR-2024-07-03/pdf/2024-14396.pdf">https://www.govinfo.gov/content/pkg/FR-2024-07-03/pdf/2024-14396.pdf</a>,
corrected, 89 FR 76713 (Sept. 19, 2024), available at <a href="https://www.govinfo.gov/content/pkg/FR-2024-09-19/pdf/2024-21265.pdf">https://www.govinfo.gov/content/pkg/FR-2024-09-19/pdf/2024-21265.pdf</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.
\9\ 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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Estimated Annual Burden Hours: 3,877,492 hours (Total).
Recordkeeping: 1,296,378 hours.
Disclosures and Reporting: 2,581,114 hours.
Estimated Annual Labor Costs: $159,000,057 (Total).
Recordkeeping: $32,783,491.
Disclosures and Reporting: $126,216,566.
Estimated Annual Non-Labor Costs: A range up to $6 million.\10\
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\10\ The range is due to differences in the diverse covered
entities and varied circumstances that can apply. The high end is
almost certainly overinclusive as explained further in response #13
(Estimated Capital and Other Non-Labor Costs) on Regulation B's
Supporting Statement.
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2. Regulation E
The EFTA requires that covered entities provide consumers with
accurate disclosure of the costs, terms, and rights relating to
electronic fund transfers (``EFTs'') 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, and others.
Estimated Annual Burden Hours: Total: 7,435,956 hours.
Recordkeeping: 251,053 hours.
Disclosures: 7,184,903 hours.
Estimated Annual Labor Costs: $363,192,555 (Total).
Recordkeeping: $6,150,791.
Disclosures: $357,041,764.
Estimated Annual Non-Labor Costs: $0.
3. Regulation M
The CLA 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.
Estimated Annual Burden Hours: 101,953 hours (Total).
Recordkeeping: 30,203 hours.
Disclosures: 71,750 hours.
Estimated Annual Labor Costs: $6,535,193 (Total).
Recordkeeping: $1,936,018.
Disclosures: $4,599,175.
Estimated Annual Non-Labor Costs: $0.
4. Regulation Z
The TILA 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,\11\ ability to pay
of mortgage consumers, mortgage servicing, loan originators, and
certain integrated mortgage disclosures.
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\11\ 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)).
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Estimated Annual Burden Hours: 8,416,441 (Total).
Recordkeeping: 561,866 hours.
Disclosures: 7,854,575 hours.
Estimated Annual Labor Costs: $397,863,549 (Total).
Recordkeeping: $13,765,727.
Disclosures: $384,097,822.
Estimated Annual Non-Labor Costs: $0.
Request for Comment: On August 1, 2024, the Commission sought
comment on the information collection requirements associated with
Regulations B, E, M, and Z. 89 FR 62736 (Aug. 1, 2024). Eight comments
were received. One comment supported the proposal, and stated that
extension of clearance for these requirements and documentation of
compliance is essential for the protection of consumers. Seven comments
were unrelated to the proposal (and pertained to other issues, such as
antitrust topics). Pursuant to the OMB regulations, 5 CFR part 1320,
that implement the PRA, 44 U.S.C. 3501 et seq., the FTC is providing
this second opportunity for public comment while seeking OMB approval
to renew the pre-existing clearance for the Rule.
Your comment--including your name and your state--will be placed on
the public record of this proceeding. Because your comment will be made
public, you are solely responsible for making sure that your comment
does not include any sensitive personal information, such as anyone'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
[[Page 92688]]
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.
Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2024-27458 Filed 11-21-24; 8:45 am]
BILLING CODE 6750-01-P
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