Notice2025-08801
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 16, 2025
Issuing agencies
Federal Trade Commission
Abstract
The Federal Trade Commission ("FTC" or "Commission") is seeking public comments on its proposal to extend for an additional three years the current Paperwork Reduction Act ("PRA") clearance for information collection requirements contained in the FTC regulations governing the duties of furnishers of information to consumer reporting agencies ("Information Furnishers Rule" or "Rule"), which applies to certain motor vehicle dealers, and its shared enforcement with the Bureau of Consumer Financial Protection ("CFPB") of the furnisher provisions (subpart E) of the CFPB's Regulation V regarding other entities. The current clearance expires on September 30, 2025.
Full Text
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<title>Federal Register, Volume 90 Issue 94 (Friday, May 16, 2025)</title>
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[Federal Register Volume 90, Number 94 (Friday, May 16, 2025)]
[Notices]
[Pages 21032-21034]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08801]
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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'') is
seeking public comments on its proposal to extend for an additional
three years the current Paperwork Reduction Act (``PRA'') clearance for
information collection requirements contained in the FTC regulations
governing the duties of furnishers of information to consumer reporting
agencies (``Information Furnishers Rule'' or ``Rule''), which applies
to certain motor vehicle dealers, and its shared enforcement with the
Bureau of Consumer Financial Protection (``CFPB'') of the furnisher
provisions (subpart E) of the CFPB's Regulation V regarding other
entities. The current clearance expires on September 30, 2025.
DATES: Comments must be filed by July 15, 2025.
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 ``Information Furnishers
Rule, PRA Comment, P135407'' 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: Gorana Neskovic, Attorney, Division of
Privacy and Identity Protection, Bureau of Consumer Protection, (202)
326-2322, 600 Pennsylvania Ave. NW, CC-8232, Washington, DC 20580.
SUPPLEMENTARY INFORMATION:
Title of Collection: Duties of Furnishers of Information to
Consumer Reporting Agencies.
OMB Control Number: 3084-0144.
Type of Review: Extension without change of a currently approved
collection.
Affected Public: Private Sector: Businesses and other for-profit
entities.
Estimated Annual Burden Hours: 15,423 hours.
Estimated Annual Labor Costs: $942,021.
Estimated Annual Non-Labor Costs: $0.
Abstract: The Dodd-Frank Act \1\ transferred most of the FTC's
rulemaking authority for the furnisher provisions of the Fair Credit
Reporting Act (``FCRA'') \2\ to the CFPB. The FTC, however, retains
rulemaking authority for motor vehicle dealers that are predominantly
engaged in the sale and servicing of motor vehicles, the leasing and
servicing of motor vehicles, or both.\3\ In addition, the FTC retains
its authority to enforce the furnisher
[[Page 21033]]
provisions of the FCRA and rules issued under those provisions.
Accordingly, the FTC and CFPB have overlapping enforcement authority
for many entities subject to CFPB's Regulation V (subpart E), and the
FTC has sole enforcement authority for the motor vehicle dealers
subject to the FTC's Information Furnishers Rule.
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\1\ Public Law 111-203, 124 Stat. 1376 (2010).
\2\ 15 U.S.C. 1681 et seq.
\3\ See Dodd-Frank Act, sec. 1029(a), (c).
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Under Sec. 660.3 of the FTC's Information Furnishers Rule \4\ and
Sec. 1022.42 of the CFPB Rule,\5\ furnishers must establish and
implement reasonable written policies and procedures regarding the
accuracy and integrity of the information relating to consumers that
they furnish to a consumer reporting agency (``CRA'') for inclusion in
a consumer report.\6\ Section 660.4 of the FTC Rule and Sec. 1022.43
of the CFPB Rule require that entities which furnish information about
consumers to a CRA respond to direct disputes from consumers. These
provisions also require that a furnisher notify consumers by mail or
other means (if authorized by the consumer) within five business days
after making a determination that a dispute is frivolous or irrelevant
(``F/I dispute'').
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\4\ 16 CFR 660.3.
\5\ 12 CFR 1022.42.
\6\ The rules also provide that an entity is not a furnisher
when it: (1) provides information to a CRA solely to obtain a
consumer report for a permissible purpose under the FCRA; (2) is
acting as a CRA as defined in section 603(f) of the FCRA; (3) is an
individual consumer to whom the furnished information pertains; or
(4) is a neighbor, friend, or associate of the consumer, or another
individual with whom the consumer is acquainted or who may have
knowledge about the consumer's character, general reputation,
personal characteristics, or mode of living in response to a
specific request from a CRA.
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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.
Burden Statement
A. Number of Respondents: 6,394
FTC staff estimates that approximately 6,394 information furnishers
are subject to the FTC's Information Furnishers Rule and its
enforcement authority.\7\
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\7\ The CFPB estimates that there are 16,000 furnishers,
excluding motor vehicle dealers that are subject to the FTC's
jurisdiction, with an allocation to that agency of 63 percent of the
burden or 10,080 respondents. See CFPB, Supporting Statement Part A,
Fair Credit Reporting Act (Regulation V) 12 CFR 1022 (OMB Control
Number: 3170-0002) (<a href="https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202008-3170-001">https://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=202008-3170-001</a>). Allocating the remaining
37 percent of the burden to the FTC yields 5,920 respondents,
excluding motor vehicle dealers that are subject to the FTC's
jurisdiction. FTC staff estimates that there are approximately
47,442 motor vehicle dealers in the U.S. See U.S. Census Bureau, All
Sectors: County Business Patterns, including ZIP Code Business
Patterns, by Legal Form of Organization and Employment Size Class
for the U.S., States, and Selected Geographies: 2022, available at
<a href="https://data.census.gov/table/CBP2022.CB2200CBP?n=44111:44112">https://data.census.gov/table/CBP2022.CB2200CBP?n=44111:44112</a>
(listing 21,835 establishments for ``new car dealers,'' NAICS Code
44111, and 25,607 establishments for ``used car dealers,'' NAICS
Code 44112). It is difficult to determine precisely the number of
motor vehicle dealers that are subject to the FTC's jurisdiction and
that are furnishers. Given the restrictions in section 1029(a) of
the Dodd-Frank Act that motor vehicle dealers subject to the FTC's
jurisdiction are those that routinely assign consumer contracts
governing retail credit to an unaffiliated third-party finance
source, FTC staff believes the number is de minimis. Accordingly,
FTC staff estimates that 1 percent of motor vehicle dealers subject
to the FTC's jurisdiction are furnishers of information to CRAs, or
474 respondents. Thus, for purposes of these burden calculations,
FTC staff assumes that there are 6,394 respondents (474 motor
vehicle dealers + 5,920 other entities).
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B. Section 660.3 of FTC Rule and Sec. 1022.42 of CFPB Rule
I. Annual Hours Burden: 12,788 hours.
Section 660.3 of the FTC's Furnisher Rule and Sec. 1022.42 of
Regulation V (subpart E) require furnishers to establish written
policies and procedures regarding the accuracy and integrity of
information relating to consumers that they furnish to a CRA.
Furnishers must also review these policies and procedures periodically
and update them as necessary to ensure their continued effectiveness.
FTC staff estimate a yearly recurring burden of 2 hours for training to
help ensure continued compliance regarding written policies and
procedures for the accuracy and integrity of the information furnished
to a CRA about consumers.\8\ This yields an annual hours burden of
12,788 hours (6,394 respondents x 2 hours for training).
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\8\ See 74 FR 31484, 31505 (July 1, 2009).
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II. Annual Labor Costs: $864,341.
Labor costs are derived by applying appropriate estimated hourly
cost figures to the burden hours described above. The FTC assumes that
respondents will use managerial and/or professional technical personnel
to train company employees on continued compliance with the information
furnisher requirements under the FTC and CFPB Rules. This yields
estimated annual labor costs of $864,341 (12,788 hours x $67.59 \9\).
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\9\ See Bureau of Labor Statistics, U.S. Department of Labor,
Table 1: National Employment and Wage Data from the Occupational
Employment Statistics Survey by Occupation, May 2024, available at
<a href="https://www.bls.gov/news.release/ocwage.t01.htm">https://www.bls.gov/news.release/ocwage.t01.htm</a> [hereinafter BLS
Table 1], for mean hourly wage rate for ``Training and Development
Managers.''
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C. Section 660.4 of FTC Rule and Sec. 1022.43 of CFPB Rule
Section 660.4 of the FTC's Information Furnishers Rule and Sec.
1022.43 of the CFPB's Regulation V (subpart E) require furnishers to
respond to direct disputes from consumers and notify consumers by mail
or other means (if authorized by the consumer) within five business
days after making a determination that a dispute is frivolous or
irrelevant.
I. Annual Hours Burden: 2,635 hours.
FTC staff estimate that the burden necessary to prepare and
distribute F/I notices is approximately 14 minutes per notice.\10\
Based on the calculations below, this yields an annual hours burden of
2,635 hours.
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\10\ 74 FR 31484, 31505 (July 1, 2009).
1. 21,720 total F/I disputes \11\
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\11\ Id. at 31506 n. 58.
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2. Motor vehicle dealer-only furnisher disputes are assumed to be 4
percent of the total: 21,720 x .04 = 869 F/I disputes \12\
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\12\ FTC staff believes that 4 percent is a reasonable estimate
based on recent data. See ``Key Dimensions and Processes in the U.S.
Credit Reporting System: A review of how the nation's largest credit
bureaus handle consumer data,'' December 2012, pp. 14, 29, 31, 34.
The CFPB report noted that almost 40 percent of all consumer
disputes at the nationwide CRAs, on average, can be linked to
collections. It stated that collection trade lines generate
significantly higher numbers of consumer disputes than other types
of trade lines--specifically, four times higher than auto-related
dispute rates. These figures seem to suggest that almost 10 percent
of all consumer disputes at the nationwide CRAs, on average, can be
linked to auto-related disputes. When the FTC issued its final Rule,
FTC staff estimated that 40 percent of direct disputes would result
in the sending of F/I dispute notices. See 74 FR 31506 n.58. The
FTC's estimate of 4 percent is based on taking 40 percent of the 10
percent of all consumer disputes at the nationwide CRAs, on average,
linked to auto loans.
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3. 20,851 respondents (21,720-869 FTC only) / by 2 = 10,425 F/I
disputes subject to FTC shared jurisdiction
4. 869 FTC only F/I disputes + 10,425 additional F/I disputes = 11,294
F/I dispute notices for the FTC's jurisdiction
5. 11,294 F/I disputes x 14 minutes each = 2,635 hours
II. Annual Labor Costs: $77,680.
Labor costs are derived by applying appropriate estimated hourly
cost figures to the burden hours described above. FTC staff assumes
that respondents will use skilled administrative support personnel to
provide the required F/I dispute notices to consumers. This yields
estimated annual labor costs of $77,680 (2,635 hours x $29.48 \13\).
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\13\ The revised figure is an average of Bureau of Labor
Statistics mean hourly wages for potentially analogous employee
types; specifically, first-line supervisors of office and
administrative support workers ($34.40); bookkeeping, accounting,
and auditing clerks ($25.01); brokerage clerks ($32.54); and
eligibility interviewers, government programs ($25.95). See BLS
Table 1. This averages to $29.48 per hour, rounded.
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D. Annual Non-Labor Costs: $0
FTC staff believes that these information collection requirements
impose negligible capital or other non-labor costs, as the affected
entities are already likely to have the necessary supplies and
equipment (e.g., offices and computers) to administer the information
collections described above.
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
July 15, 2025. 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 ``Information Furnishers
Rule, PRA Comment, P135407'' 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.
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 July 15, 2025.
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. 2025-08801 Filed 5-15-25; 8:45 am]
BILLING CODE 6750-01-P
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</html>Indexed from Federal Register on May 16, 2025.
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