Agency Information Collection Activities; Proposed Collection; Comment Request; Extension, 6114-6122 [2012-2665]
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disabilities (Braille, large print,
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email to fcc504@fcc.gov or call the
Consumer and Governmental Affairs
Bureau at (202) 418–0530 (voice), (202)
418–0432 (TTY).
Federal Communications Commission.
Karen Peltz Strauss,
Deputy Chief, Consumer and Governmental
Affairs Bureau.
[FR Doc. 2012–2754 Filed 2–6–12; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Notice to All Interested Parties of the
Termination of the Receivership of
Thunder Bank (Fund 10269) Sylvan
Grove, KS
tkelley on DSK3SPTVN1PROD with NOTICES
Notice is hereby given that the Federal
Deposit Insurance Corporation (‘‘FDIC’’)
as Receiver for Thunder Bank, (‘‘the
Receiver’’) intends to terminate its
receivership for said institution. The
FDIC was appointed receiver of
Thunder Bank on July 23, 2010. The
liquidation of the receivership assets
has been completed. To the extent
permitted by available funds and in
accordance with law, the Receiver will
be making a final dividend payment to
proven creditors.
Based upon the foregoing, the
Receiver has determined that the
continued existence of the receivership
will serve no useful purpose.
Consequently, notice is given that the
receivership shall be terminated, to be
effective no sooner than thirty days after
the date of this Notice. If any person
wishes to comment concerning the
termination of the receivership, such
comment must be made in writing and
sent within thirty days of the date of
this Notice to: Federal Deposit
Insurance Corporation, Division of
Resolutions and Receiverships,
Attention: Receivership Oversight
Department 34th Floor, 1601 Bryan
Street, Dallas, TX 75201.
No comments concerning the
termination of this receivership will be
considered which are not sent within
this time frame.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2012–2723 Filed 2–6–12; 8:45 am]
BILLING CODE 6714–01–P
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FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request; Extension
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
AGENCY:
The information collection
requirements described below will be
submitted to the Office of Management
and Budget (‘‘OMB’’) for review, as
required by the Paperwork Reduction
Act (‘‘PRA’’). The FTC is seeking public
comments on its proposal to extend
through April 30, 2015, the current PRA
clearances for information collection
requirements contained in four
consumer financial regulations enforced
by the Commission. Those clearances
expire on April 30, 2012.
DATES: Comments must be filed by April
9, 2012.
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
Comments, P084812’’ on your comment
and file your comment online at
https://ftcpublic.commentworks.com/
ftc/RegsBEMZpra by following the
instructions on the Web-based form. If
you prefer to file your comment on
paper, mail or deliver your comment to
the following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex J), 600
Pennsylvania Avenue NW., Washington,
DC 20580.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the proposed information
requirements should be addressed to
Carole Reynolds or Soyong Cho,
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
SUMMARY:
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(4) Regulations promulgated under
The Truth-In-Lending Act, 15 U.S.C.
1601 et seq. (‘‘TILA’’) (‘‘Regulation Z’’)
(OMB Control Number: 3084–0088).
The FTC enforces these statutes as to
all businesses engaged in conduct these
laws cover unless these businesses
(such as federally chartered or insured
depository institutions) are subject to
the regulatory authority of another
federal agency.
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 has published for public
comment interim final rules for new
regulations in 12 CFR part 1002
(Regulation B), 12 CFR part 1005
(Regulation E), 12 CFR part 1013
(Regulation M), and 12 CFR 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
As a result of the Dodd-Frank Act, the
FTC and the CFPB now 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.
Because of this shared enforcement
jurisdiction, the two agencies have
divided the FTC’s previously-cleared
PRA burden between them,4 except that
the FTC retained all of the part of that
burden associated with certain motor
vehicle dealers (for brevity, referred to
in the burden summaries below as a
‘‘carve-out’’).5 The division of PRA
1 12 CFR part 1002 (Reg. B) (76 FR 79442, Dec.
21, 2011); 12 CFR 1005 (Reg. E) (76 FR 81020, Dec.
27, 2011); 12 CFR part 1013 (Reg. M) (76 FR 78500,
Dec. 19, 2011); 12 CFR part 1026 (Reg. Z) (76 FR
79768, Dec. 22, 2011).
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, § 1029(a)–(c).
3 See Dodd-Frank Act, § 1075 (these requirements
are implemented through Board Regulation II, 12
CFR part 235, rather than EFTA’s implementing
Regulation E).
4 The CFPB also factored into its burden estimates
respondents over which it has jurisdiction but the
FTC does not.
5 These are dealers specified by the Dodd-Frank
Act under § 1029(a), but as limited by subsection
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burden hours not attributable to certain
motor vehicle dealers is reflected in the
CFPB’s recent PRA clearance requests to
OMB,6 as well as in the FTC’s burden
estimates below.
As a result of the Dodd-Frank Act, the
FTC generally has sole authority to
enforce Regulations B, E, M, and Z
regarding motor vehicle dealers
predominantly engaged in the sale and
servicing of motor vehicles, the leasing
and servicing of motor vehicles, or
both.7 Because the FTC has exclusive
jurisdiction to enforce these rules for
such motor vehicle dealers, it is
including the entire PRA burden for
them in the burden estimates below.
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 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).
The regulations also require covered
entities to make disclosures to thirdparties. Related compliance involves
set-up/monitoring and transactionspecific costs. ‘‘Set-up’’ burden,
incurred only by covered new entrants,
includes their identifying the applicable
required disclosures, determining how
(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 ‘‘carve-out’’ for this PRA burden analysis
reflects a general estimated volume of motor vehicle
dealers. This attribution does not change actual
enforcement authority.
6 OMB Control Numbers 3170–0013 (Regulation
B), 3170–0014 (Regulation E), 3170–0008
(Regulation M), and 3170–0015 (Regulation Z)
7 See Dodd-Frank Act, § 1029(a)–(c).
8 PRA ‘‘burden’’ does not include effort expended
in the ordinary course of business, regardless of any
regulatory requirement. 5 CFR 1320.3(b)(2).
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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. While this burden varies
with the number of transactions, the
figures shown for transaction-related
burden in the tables that follow are
estimated averages.
The required disclosures do not
impose PRA burden on some covered
entities because they make those
disclosures in their normal course of
activities. For other covered entities that
do not, their compliance burden will
vary widely depending on the extent to
which they have developed effective
computer-based or electronic systems
and procedures to communicate and
document required disclosures.9
Calculating the burden associated
with the four regulations’ disclosure
requirements is very difficult because of
the highly diverse group of affected
entities. 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. 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
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.
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 wage
rates by the burden hours described
above. The hourly rates used were $49
for managerial oversight, $30 for skilled
technical services, and $16 for clerical
work. These figures are averages drawn
from Bureau of Labor Statistics data.11
Further, the FTC 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.
The applicable PRA requirements
impose minimal capital or other nonlabor costs. Affected entities generally
already have the necessary equipment
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 ordinary course of
business.
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., notices 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.
10 The Commission generally does not have
jurisdiction over banks, thrifts, and federal credit
unions under the applicable regulations.
11 These inputs are based broadly on mean hourly
data found within the National Compensation
Survey: Occupational Earnings in the United States,
2010, Bulletin 2753 (May 2011), Table 3 (https://
www.bls.gov/ncs/ocs/sp/nctb1477.pdf).
12 Section 1071 of the Dodd-Frank Act amends
the ECOA to require financial institutions to collect
and report information concerning credit
applications by women- or minority-owned
businesses and small businesses, effective on the
July 21, 2011 transfer date. Both the CFPB and the
Board have exempted affected entities from
complying with this requirement until a date set by
the prospective final rules these agencies issue to
implement the Dodd-Frank Act’s requirements. The
Commission will address PRA burden for its
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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 others.
Recordkeeping
FTC staff estimates that Regulation B’s
general recordkeeping requirements
affect 530,479 credit firms subject to the
Commission’s jurisdiction, at an average
annual burden of 1.25 hours per firm for
a total of 663,099 hours.12 Staff also
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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 2.25
million credit applications (based on
industry data regarding the approximate
number of mortgage purchase and
refinance originations), for a total of
37,500 hours.13 Staff also estimates that
recordkeeping of self-testing subject to
the regulation would affect 1,375 firms,
with an average annual burden of one
hour (of skilled technical time) per firm,
for a total of 1,375 hours, and that
recordkeeping of any corrective action
as a result of self-testing would affect
10% of them, i.e., 138 firms, with an
average annual burden of four hours (of
skilled technical time) per firm, for a
total of 552 hours.14 Keeping records of
race/national origin, sex, age, and
marital status requires an estimated one
minute of skilled technical time.
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.15
Recordkeeping for the self-test
responsibility and of any corrective
actions requires an estimated one hour
and four hours, respectively, of skilled
technical time.
Disclosure
Regulation B requires that creditors
(i.e., entities that regularly 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 various
types of mortgage credit to provide a
copy of the appraisal report to
applicants or to notify them of their
right to a copy of the report (and
thereafter provide a copy of the report,
upon the applicant’s request). Finally,
Regulation B also requires that for
accounts which spouses may use or for
which they are contractually liable,
creditors who report credit history must
do so in a manner reflecting both
Burden Totals
Recordkeeping: 702,526 hours (625,977
+ 76,549 carve-out for motor
vehicles); $12,720,734 ($11,384,370 +
$1,336,364 carve-out for motor
vehicles), associated labor costs
Disclosures: 1,164,458 hours (1,032,206
+ 132,252 carve-out for motor
vehicles); $37,146,184 ($32,927,330 +
$4,218,854 carve-out for motor
vehicles), associated labor costs
REGULATION B—DISCLOSURES—BURDEN HOURS
Setup/monitoring 1
Disclosures
Respondents
Transaction-related 2
Total
setup/
monitoring
burden
(hours)
Average
burden per
respondent
(hours)
Average
burden per
transaction
(minutes)
Number of
transactions
Total
transaction
burden
(hours)
Total
burden
(hours)
Credit history reporting
Adverse action notices
Appraisal notices ........
Appraisal reports ........
Self-test disclosures ...
133,000
530,000
5,000
5,000
1,375
.25
.75
.5
.5
.5
33,250
397,500
2,500
2,500
688
66,309,750
106,096,000
1,125,000
1,125,000
68,750
.25
.25
.25
.25
.25
276,291
442,067
4,688
4,688
286
309,541
839,567
7,188
7,188
974
Total ....................
........................
........................
........................
..........................
........................
........................
1,164,458
1 The
estimates shown reflect a decrease in applicable mortgage entities regarding appraisal notices and appraisal reports. The figures assume that approximately half of mortgage entities (.5 × 10,000, or 5,000 businesses) would not otherwise provide this information and thus would
be affected. The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
2 The above figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. They also assume that half of applicable
mortgage transactions (.5 × 2,250,000, or 1,125,000) would not otherwise provide the appraisal notices and reports and thus would be affected.
REGULATION B—RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required task
Time
(hours)
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General recordkeeping
Other recordkeeping ..
Recordkeeping of test
Recordkeeping of corrective action ..........
Total Recordkeeping .....
Disclosures:
Credit history reporting .............
Cost
($49/hr.)
Time
(hours)
Clerical
Cost
($30/hr.)
Time
(hours)
Total
cost
($)
Cost
($16/hr.)
0
0
0
$0
0
0
66,310
37,500
1,375
$1,989,300
1,125,000
41,250
596,789
0
0
$9,548,624
0
0
$11,537,924
1,125,000
41,250
0
0
552
16,560
0
0
16,650
........................
........................
........................
..........................
........................
........................
12,720,734
30,954
1,516,746
278,587
8,357,610
0
0
9,874,356
enforcement of these requirements after the CFPB
and the Board have issued the associated final
rules.
13 Regulation B contains model forms that
creditors may use to gather and retain the required
information.
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14 In contrast to banks, for example, entities under
FTC jurisdiction are not subject to audits 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
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year, and staff has sought to address such factors
in its burden estimates.
15 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—RECORDKEEPING AND DISCLOSURES—COST—Continued
Managerial
Required task
Time
(hours)
Skilled technical
Cost
($49/hr.)
Time
(hours)
Clerical
Cost
($30/hr.)
Time
(hours)
Total
cost
($)
Cost
($16/hr.)
Adverse action
notices .............
Appraisal notices
Appraisal reports
Self-test disclosure .................
83,957
719
719
4,113,893
35,231
35,231
755,610
6,469
6,469
22,668,300
194,070
194,070
0
0
0
0
0
0
26,782,193
229,301
229,301
97
4,753
877
26,310
0
0
31,063
Total Disclosures ........
........................
........................
........................
..........................
........................
........................
37,146,214
Total Recordkeeping
and Disclosures ........
........................
........................
........................
..........................
........................
........................
49,866,948
2. Regulation E
The EFTA 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, etc. Staff estimates that
Regulation E’s recordkeeping
requirements affect 391,120 firms
offering EFT 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 391,120 hours.
Burden Totals
Recordkeeping: 391,120 hours (375,881
+ 15,239 carve-out); $6,805,488
($6,540,328 + $265,160 carve-out),
associated labor costs
Disclosures: 4,019,797 hours (4,002,868
+ 16,929 carve-out); $128,236,961
($127,696,924 + $540,037 carve-out),
associated labor costs
REGULATION E: DISCLOSURES —BURDEN HOURS
Setup/monitoring
Disclosures
Respondents
Initial terms .................
Change in terms ........
Periodic statements ...
Error resolution ..........
Transaction receipts ...
Preauthorized transfers 1 .......................
Service provider notices ........................
Govt. benefit notices ..
ATM notices 2 .............
Electronic check conversion 3 ..................
Payroll cards 4 ............
Overdraft services 5 ....
Gift cards 6 .................
Remittance transfers 7
Disclosures .........
Error resolution ...
Agent compliance
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Total .............
Transaction-related
Total
setup/monitoring
burden
(hours)
Average
burden per
respondent
(hours)
Number of
transactions
Average
burden per
transaction
(minutes)
Total
transaction
burden
(hours)
Total
burden
(hours)
50,000
12,500
50,000
50,000
50,000
.5
.5
.5
.5
.5
25,000
6,250
25,000
25,000
25,000
500,000
16,500,000
600,000,000
500,000
2,500,000,000
.02
.02
.02
5
.02
167
5,500
200,000
41,667
833,333
25,167
11,750
225,000
66,667
858,333
257,620
.5
128,810
6,440,500
.25
26,835
155,645
50,000
5,000
250
.25
.5
.25
12,500
2,500
63
500,000
50,000,000
50,000,000
.25
.25
.25
2,083
208,333
208,333
14,583
210,833
208,396
57,620
125
50,000
50,000
.5
.5
.5
.5
28,810
63
25,000
25,000
1,152,400
500,000
2,500,000
2,500,000,000
.02
3
.02
.02
384
25,000
833
833,333
29,194
25,063
25,833
858,333
35,000
35,000
35,000
1
1
1
35,000
35,000
35,000
18,000,000
36,000,000
18,000,000
1
1
1
300,000
600,000
300,000
335,000
635,000
335,000
........................
........................
........................
..........................
........................
........................
4,019,797
1 Estimated
preauthorized transfers have increased from the FTC’s previously cleared estimate.
ATM transactions have increased from the FTC’s previously cleared estimate.
3 Estimated electronic check conversion has decreased from the FTC’s previously cleared estimate.
4 Payroll card entities and transactions have increased greatly over the years, in large part due to the evolving economy as well as companies
seeking ways to cut costs and reduce the amount of paper used in daily operations.
5 Regulation E now covers overdraft services.
6 Regulation E now, in part, covers gift cards.
7 Regulation E now covers remittance transfers.
2 Estimated
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REGULATION E: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required task
Time
(hours)
Recordkeeping .....................................
Disclosures:
Initial terms ...................................
Change in terms ...........................
Periodic statements ......................
Error resolution .............................
Transaction receipts .....................
Preauthorized transfers ................
Service provider notices ...............
Govt. benefit notices .....................
ATM notices ..................................
Electronic check conversion .........
Payroll cards .................................
Overdraft services .........................
Gift cards ......................................
Remittance transfers:
Disclosures ...................................
Error resolution .............................
Agent compliance .........................
Total Disclosures ...................
Total Recordkeeping and Disclosures ..............................
Skilled technical
Cost
($49/hr.)
Time
(hours)
Clerical
Cost
($30/hr.)
Time
(hours)
Total
cost
($)
Cost
($16/hr.)
0
0
35,762
1,072,860
321,858
5,149,728
6,222,588
2,517
1,175
22,500
6,667
85,833
15,565
1,458
21,083
20,840
2,919
2,506
2,583
85,833
123,333
57,575
1,102,500
326,883
4,205,817
762,685
71,442
1,033,067
1,021,160
143,031
122,794
126,567
4,205,817
22,650
10,750
202,500
60,000
772,500
140,080
13,125
189,750
187,556
26,275
22,557
23,250
772,500
679,500
322,500
6,075,000
1,800,000
23,175,000
4,202,400
393,750
5,692,500
5,626,680
788,250
676,710
697,500
23,175,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
802,833
380,075
7,177,500
2,126,883
27,380,817
4,965,085
465,192
6,725,567
6,647,840
931,281
799,504
824,067
27,380,817
33,500
63,500
33,500
1,641,500
3,111,500
1,641,500
301,500
571,500
301,500
9,045,000
17,145,000
9,045,000
0
0
0
0
0
0
10,686,500
20,256,500
10,686,500
................
....................
....................
........................
................
........................
128,236,961
................
....................
....................
........................
................
........................
$135,042,449
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.
Staff estimates that Regulation M’s
recordkeeping requirements affect
approximately 54,442 firms within the
FTC’s jurisdiction leasing products to
consumers at an average annual burden
of one hour per firm, for a total of
54,442 hours.
Burden Totals
Recordkeeping: 54,442 hours (40,558 +
13,884 carve-out);
$947,288 ($705,712 + $241,576 carveout), associated labor costs
Disclosures: 68,403 hours (42,139 +
26,264 carve-out);
$2,182,050 ($1,344,217 + $837,833
carve-out), associated labor costs
REGULATION M: DISCLOSURES—BURDEN HOURS
Disclosures
Respondents
Setup/monitoring
Average
burden per
respondent
(hours)
Transaction-related
Total
setup/monitoring
burden
(minutes)
Number of
transactions
Average
burden per
transaction
(minutes)
Total
transaction
burden
(hours)
Total
burden
(hours)
Motor Vehicle Leases1 .........
Other Leases2 ......................
Advertising ............................
29,442
25,000
13,471
1
.50
.50
29,442
12,500
6,736
1,972,614
250,000
538,840
.50
.25
.25
16,438
1,042
2,245
45,880
13,542
8,981
Total ..............................
........................
........................
........................
........................
........................
........................
68,403
tkelley on DSK3SPTVN1PROD with NOTICES
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). Leases up to $50,000 (plus an annual adjustment) are now covered, which increases the breadth of transactions subject to the FTC’s jurisdiction under Regulation M. This increase, however, is more than offset by the FTC now sharing PRA burden
with the CFPB, which thus yields a net decrease from past FTC estimates of the number of transactions.
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). The figures shown for respondents and transactions reflect a net decrease from prior FTC estimates, given current market conditions and the new PRA burden sharing with the CFPB while also recognizing that the CLA and Regulation M now cover leases up to $50,000
(plus an annual adjustment).
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Federal Register / Vol. 77, No. 25 / Tuesday, February 7, 2012 / Notices
REGULATION M: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required task
Time
(hours)
Skilled technical
Cost
($49/hr.)
Time
(hours)
Clerical
Cost ($30/
hr.)
Time
(hours)
Total
Cost ($16/
hr.)
Cost ($)
Recordkeeping .........................................................
Disclosures:
Motor Vehicle Leases .......................................
Other Leases ....................................................
Advertising ........................................................
0
0
5,444
163,320
48,998
783,968
947,288
4,588
1,354
898
224,812
66,346
44,002
41,292
12,188
8,083
1,238,760
365,640
242,490
0
0
0
0
0
$0
1,463,572
431,986
286,492
Total Disclosures .......................................
Total Recordkeeping and Disclosures ......
................
................
................
................
................
................
....................
....................
................
................
....................
....................
2,182,050
3,123,338
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.
FTC staff estimates that Regulation Z’s
recordkeeping requirements affect
approximately 530,479 entities subject
to the Commission’s jurisdiction, at an
average annual burden of 1.25 hours per
entity, for a total of 663,099 hours.
Burden Totals
Recordkeeping: 663,099 hours (586,900
+ 76,199 carve-out); $11,537,924
($10,212,060 + $1,325,864 carve-out),
associated labor costs
Disclosures: 12,000,274 hours
(10,957,621 + 1,042,653 carve-out);
$382,858,568 ($349,597,924 +
$33,260,644 carve-out), associated
labor costs
REGULATION Z: DISCLOSURES—BURDEN HOURS
Setup/monitoring
Disclosures 1
tkelley on DSK3SPTVN1PROD with NOTICES
Respondents
Open-end credit:
Initial terms .........
Rescission notices 4 ...............
Subsequent disclosures ...........
Periodic statements ...............
Error resolution ...
Credit and charge
card accounts ..
Settlement of estate debts 5 ......
Special credit
card requirements 6 ............
Home equity lines
of credit 7 .........
College student
credit card marketing—ed. institutions 8 ........
College student
credit card marketing—card
issuer reports 9
Posting and reporting of credit
card agreements 10 ...........
Advertising ..........
Sale, transfer, or
assignment of
mortgages 11 ....
VerDate Mar<15>2010
17:34 Feb 06, 2012
Average
burden per
respondent 2
(hours)
Transaction-related
Total setup/
monitoring
burden
(hours)
Number of
transactions
Average
burden per
transaction 3
(minutes)
Total
transaction
burden
(hours)
Total
burden
(hours)
45,000
.75
33,750
20,000,000
.375
125,000
158,750
1,875
.5
938
100,000
.25
417
1,355
10,000
.75
7,500
62,500,000
.188
195,833
203,333
45,000
45,000
.75
.75
33,750
33,750
1,750,000,000
4,000,000
.0938
6
2,735,833
400,000
2,769,583
433,750
25,000
.75
18,750
12,500,000
.375
78,125
96,875
45,000
.75
33,750
1,000,000
.375
6,250
40,000
25,000
.75
18,750
12,500,000
.375
78,125
96,875
1,875
.5
938
875,000
.25
3,646
4,584
2,500
.5
1,250
250,000
.25
1,042
2,292
300
.75
225
18,000
.75
225
450
25,000
100,000
.75
.75
18,750
75,000
12,500,000
300,000
.375
.75
78,125
3,750
96,875
78,750
1,875
.5
938
1,750,000
.25
7,292
8,230
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REGULATION Z: DISCLOSURES—BURDEN HOURS—Continued
Setup/monitoring
Average
burden per
respondent 2
(hours)
Disclosures 1
Respondents
Appraiser misconduct reporting 12 ................
Closed-end credit:
Credit disclosures
Rescission notices 13 .............
Redisclosures 14 ..
Variable rate
mortgages 15 ....
High rate/high-fee
mortgages and
higher priced
mortgages 16 ....
Reverse mortgages 17 ...........
Advertising ..........
Private education
loans 18 ............
Sale, transfer, or
assignment of
mortgages 19 ....
Appraiser misconduct reporting 20 ................
Transaction-related
Total setup/
monitoring
burden
(hours)
Number of
transactions
Total
transaction
burden
(hours)
Average
burden per
transaction 3
(minutes)
Total
burden
(hours)
625,000
.75
468,750
12,500,000
.375
78,125
546,875
380,480
.75
285,360
163,225,920
2.25
6,120,972
6,406,332
18,750
200,000
.5
.5
9,375
100,000
7,500,000
1,000,000
1
2.25
125,000
37,500
134,375
137,500
17,500
.5
8,750
500,000
1.5
12,500
21,250
10,000
.5
5,000
125,000
1.5
3,125
8,125
12,500
240,240
.5
.5
6,250
120,120
43,750
480,480
1
1
729
8,008
6,979
128,128
100
.5
50
50,000
1.5
1,250
1,300
100,000
.5
50,000
5,000,000
.25
20,833
70,833
625,000
.75
468,750
12,500,000
.375
78,125
546,875
Total openend credit
........................
........................
........................
..........................
........................
........................
4,538,577
Total closedend credit
........................
........................
........................
..........................
........................
........................
7,461,697
Total credit ...
........................
........................
........................
..........................
........................
........................
12,000,274
1 Regulation
Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $50,000 plus an annual
adjustment (except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in transactions. In some instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to Regulation Z have increased estimated PRA burden. The overall effect of these competing factors, combined with the FTC now sharing with the
CFPB estimated PRA burden (for all but certain motor vehicle dealers) yields a net decrease from the FTC’s prior reported estimate for open-end
credit and a net increase from the FTC’s prior burden estimate for closed-end credit.
2 Burden per respondent in many categories has increased compared to prior FTC estimates, due to changes in rules.
3 Burden per transaction in many categories has increased compared to prior FTC estimates, due to changes in rules.
4 Mortgages have decreased.
5 Regulation Z now requires disclosures for timely settlement of estate debts.
6 Regulation Z now has special credit card requirements.
7 Home equity lines of credit have decreased.
8 Regulation Z now requires higher education institutions to disclose credit card marketing agreements.
9 Regulation Z now requires card issuers to submit reports on college student credit card marketing.
10 Regulation Z now requires card issuers to post and report general credit card agreements.
11 Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
12 Regulation Z now requires reporting of appraiser misconduct.
13 Mortgages have decreased.
14 Regulation Z now has substantial redisclosure requirements. Previously, redisclosures were generally provided in the ordinary course of
business. Rule changes since set numerous procedures and circumstances for redisclosures.
15 Variable rate mortgages have decreased.
16 Mortgages have decreased.
17 Reverse mortgages have decreased.
18 Regulation Z now requires disclosures for private education loans.
19 Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
20 Regulation Z now requires reporting of appraiser misconduct.
tkelley on DSK3SPTVN1PROD with NOTICES
REGULATION Z: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required task
Time
(hours)
Recordkeeping .................................
Open-end credit Disclosures:
Initial terms ...............................
VerDate Mar<15>2010
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Jkt 226001
Skilled technical
Cost
($49/hr.)
Time
(hours)
Cost
($30/hr.)
Clerical
Time
(hours)
Total
cost
($)
Cost
($16/hr.)
0
$0
66,310
$1,989,300
596,789
$9,548,624
$11,537,924
15,875
777,875
142,875
4,286,250
0
0
5,064,125
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Federal Register / Vol. 77, No. 25 / Tuesday, February 7, 2012 / Notices
REGULATION Z: RECORDKEEPING AND DISCLOSURES—COST—Continued
Managerial
Required task
Time
(hours)
Skilled technical
Clerical
Cost
($49/hr.)
Time
(hours)
Cost
($30/hr.)
Time
(hours)
Total
cost
($)
Cost
($16/hr.)
Rescission notices ....................
Subsequent disclosures ............
Periodic statements ..................
Error resolution .........................
Credit and charge card accounts ....................................
Settlement of estate debts ........
Special credit card requirements .....................................
Home equity lines of credit .......
College student credit card
marketing—ed institutions .....
College student credit card
marketing—card issuer reports ......................................
Posting and reporting of credit
card agreements ...................
Advertising ................................
Sale, transfer, or assignment of
mortgages .............................
Appraiser misconduct reporting
135
20,333
276,958
43,375
6,615
996,317
13,570,942
2,125,375
1,220
183,000
2,492,625
390,375
36,600
5,490,000
74,778,750
11,711,250
0
0
0
0
0
0
0
0
43,215
6,486,317
88,349,692
13,836,625
9,688
4,000
474,712
196,000
87,187
36,000
2,615,610
1,080,000
0
0
0
0
3,090,322
1,276,000
9,688
458
474,712
22,442
87,187
4,126
2,615,610
123,780
0
0
0
0
3,090,322
146,222
229
11,221
2,063
61,890
0
0
73,111
45
2,205
405
12,150
0
0
14,355
9,688
7,875
474,712
385,875
87,187
70,875
2,615,610
2,126,250
0
0
0
0
3,090,322
2,512,125
823
54,687
40,327
2,679,663
7,407
492,188
222,210
14,765,640
0
0
0
0
262,537
17,445,303
Total open-end credit ........
....................
....................
....................
........................
....................
....................
144,780,593
640,633
13,437
13,750
2,125
31,391,017
658,413
673,750
104,125
5,765,699
120,938
123,750
19,125
172,970,970
3,628,140
3,712,500
573,750
0
0
0
0
0
0
0
0
204,361,987
4,286,553
4,386,250
677,875
969
698
12,813
130
47,481
34,202
627,837
6,370
8,719
6,281
115,315
1,170
261,570
188,430
3,459,450
35,100
0
0
0
0
0
0
0
0
309,051
222,632
4,087,287
41,470
7,083
54,687
347,067
2,679,663
63,750
492,188
1,912,500
14,765,640
0
0
0
0
2,259,567
17,445,303
Total closed-end credit ......
....................
....................
....................
........................
....................
....................
238,077,975
Total Disclosures ...............
....................
....................
....................
........................
....................
....................
382,858,568
Total Recordkeeping and
Disclosures .....................
....................
....................
....................
........................
....................
....................
394,396,492
tkelley on DSK3SPTVN1PROD with NOTICES
Closed-end credit Disclosures:
Credit disclosures .....................
Rescission notices ....................
Redisclosures ...........................
Variable rate mortgages ...........
High-rate/high-fee
mortgages
and higher priced mortgages
Reverse mortgages ..................
Advertising ................................
Private education loans ............
Sale, transfer, or assignment of
mortgages .............................
Appraiser misconduct reporting
Request for Comment: You can file a
comment online or on paper. For the
Commission to consider your comment,
we must receive it on or before April 9,
2012. Write ‘‘Regs BEMZ, PRA
Comments, P084812’’ on your comment.
Your comment—including your name
and your state—will be placed on the
public record of this proceeding,
including to the extent practicable, on
the public Commission Web site, at
https://www.ftc.gov/os/
publiccomments.shtm. As a matter of
discretion, the Commission tries to
remove individuals’ home contact
information from comments before
placing them on the Commission Web
site.
Because you comment will be made
public, you are solely responsible for
VerDate Mar<15>2010
17:34 Feb 06, 2012
Jkt 226001
making sure that your comment does
not include any sensitive personal
information, like 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, like medical records or
other individually identifiable health
information. In addition, do not include
any ‘‘[t]rade secret or any commercial or
financial information which is obtained
from any person and which is privileged
or confidential’’ as provided in Section
6(f) of the FTC Act 15 U.S.C. 46(f), and
FTC Rule 4.10(a)(2), 16CFR 4.10(a)(2). In
PO 00000
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Fmt 4703
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particular, do not include competitively
sensitive information such as costs,
sales statistics, inventories, formulas,
patterns devices, manufacturing
processes, or customer names.
If you want the Commission to give
you comment confidential treatment,
you must file it in paper form, with a
request for confidential treatment, and
you have to follow the procedure
explained in FTC Rule 4.9(c)).16 Your
comment will be kept confidential only
if the FTC General Counsel, in his or her
sole discretion, grants your request in
16 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), CFR 4.9(c), 16
CFR 4.9(c).
E:\FR\FM\07FEN1.SGM
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Federal Register / Vol. 77, No. 25 / Tuesday, February 7, 2012 / Notices
accordance with the law and the public
interest.
Postal mail addressed to the
Commission is subject to delay due to
heightened security screening. As a
result, we encourage you to submit your
comments online. To make sure that the
Commission considers your online
comment, you must file it at https://
ftcpublic.commentworks.com/ftc/
RegsBEMZpra, by following the
instructions on the web-based form. If
this Notice appears at https://
www.regulations.gov/#!home, you also
may file a comment through that Web
site.
If you file your comment on paper,
write ‘‘Regs BEMZ, PRA Comments,
P084812’’ on your comment and on the
envelope, and mail or deliver it to the
following address: Federal Trade
Commission, Office of the Secretary,
Room H–113 (Annex J) 600
Pennsylvania Avenue NW., Washington,
DC 20580. If possible, submit your
paper comment to the Commission by
courier or overnight service.
Visit the Commission Web site at to
read this Notice and the news release
describing it. 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 April 9, 2012. You
can find more information, including
routine uses permitted by the Privacy
Act, in the Commission’s privacy
policy, at https://www.ftc.gov/ftc/
privacy.htm.
Willard K. Tom,
General Counsel.
[FR Doc. 2012–2665 Filed 2–6–12; 8:45 am]
BILLING CODE 6750–01–P
electronic equipment. GSA seeks to
determine whether providing
refurbishment as a service to Federal
agencies fits into viable business
models, what appropriate standards and
certifications ought to be considered,
and how best to build Federal contracts
for such services.
DATES: Effective date: Submit comments
on or before March 8, 2012.
ADDRESSES: Submit comments
identified by ‘‘Notice-FAS–2011–01’’ by
any of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘Notice-FAS–2011–01’’ under
the heading ‘‘Enter Keyword or ID’’ and
selecting ‘‘Search.’’ Select the link
‘‘Submit a Comment’’ that corresponds
with ‘‘Notice-FAS–2011–01.’’ Follow
the instructions provided at the ‘‘Submit
a Comment’’ screen. Please include your
name, company name (if any), and
‘‘Notice-FAS–2011–01’’ on your
attached document.
• Fax: (202) 501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Hada Flowers, 1275
First Street, NE., 7th Floor, Washington,
DC 20417.
Instructions: Please submit comments
only and cite ‘‘Notice-FAS–2011–01’’, in
all correspondence related to this case.
All comments received will be posted
without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT:
Inquiries and clarifications may be sent
to Mr. Chris Hoagland, Office of
Governmentwide Policy, U.S. General
Services Administration,
christopher.hoagland@gsa.gov.
voluntary responses to the following
questions:
1. If you currently provide
refurbishment as a service to customers,
including Federal, state, or local
government entities, describe the
process of obtaining equipment and
returning it to the customer, including
the typical amount of time between
pick-up and return.
2. Is there a minimum number of
pieces of electronic equipment that
must be provided (e.g., a pallet load, a
truckload)?
3. Does providing refurbishment as a
service (rather than refurbished
equipment) fit into viable business
models for computer refurbishment
companies?
4. How do the fees you charge per
refurbished item compare to the cost of
new or used equipment?
5. Describe the process for disposing
and recycling of failed equipment. Have
all facilities in your recycling and
disposal process been certified to safely
recycle and manage electronics? If so,
what certifications do they hold?
6. Who is responsible for disposition
of equipment that cannot be
refurbished, the customer or the
provider of refurbishment services? Is
there an additional fee for disposition of
equipment that cannot be refurbished?
7. What certifications should the
government require of firms offering
refurbishment services, including those
developed specifically for recycling
facilities (e.g., R2 and e-Stewards)?
Dated: February 2, 2012.
Houston Taylor,
Assistant Commissioner, Office of Acquisition
Management, Federal Acquisition Service,
General Services Administration.
[FR Doc. 2012–2767 Filed 2–6–12; 8:45 am]
BILLING CODE 6820–89–P
SUPPLEMENTARY INFORMATION:
GENERAL SERVICES
ADMINISTRATION
I. Purpose and Information Sought
[Notice-FAS–2011–01; Docket No. 2011–
0006; Sequence 22]
Providing Refurbishment Services to
Federal Agencies
Federal Acquisition Service,
U.S. General Services Administration.
ACTION: Notice.
tkelley on DSK3SPTVN1PROD with NOTICES
AGENCY:
In accordance with the
National Strategy for Electronics
Stewardship recommendations (https://
www.gsa.gov/estewardship), GSA is
exploring whether and how best to
make cost-effective refurbishment
services available to Federal agencies to
extend the useful life of non-functional
SUMMARY:
VerDate Mar<15>2010
19:54 Feb 06, 2012
Jkt 226001
This notice is for data gathering and
planning purposes only, does not
constitute a solicitation, and is not to be
construed as a commitment by the
government to issue a solicitation,
Blanket Purchase Agreement (BPA) or
award a contract. The Government will
not reimburse any respondent for any
costs associated with information
submitted in response to this notice.
GSA seeks to determine whether
providing refurbishment as a service to
Federal agencies fits into viable
business models, what appropriate
standards and certifications ought to be
considered, and how best to build
Federal contracts for such services. GSA
is seeking this information through
PO 00000
Frm 00068
Fmt 4703
Sfmt 4703
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Meeting of the Presidential Advisory
Council on HIV/AIDS
Office of the Assistant
Secretary for Health, Office of the
Secretary, Department of Health and
Human Services.
ACTION: Notice.
AGENCY:
As stipulated by the Federal
Advisory Committee Act, the U.S.
Department of Health and Human
Service (DHHS) is hereby giving notice
that the Presidential Advisory Council
on HIV/AIDS (PACHA) will hold a
meeting. The meeting will be open to
the public.
SUMMARY:
E:\FR\FM\07FEN1.SGM
07FEN1
]]>Agencies
[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Notices]
[Pages 6114-6122]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2665]
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FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request; Extension
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The information collection requirements described below will
be submitted to the Office of Management and Budget (``OMB'') for
review, as required by the Paperwork Reduction Act (``PRA''). The FTC
is seeking public comments on its proposal to extend through April 30,
2015, the current PRA clearances for information collection
requirements contained in four consumer financial regulations enforced
by the Commission. Those clearances expire on April 30, 2012.
DATES: Comments must be filed by April 9, 2012.
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
Comments, P084812'' on your comment and file your comment online at
https://ftcpublic.commentworks.com/ftc/RegsBEMZpra by following the
instructions on the Web-based form. If you prefer to file your comment
on paper, mail or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex
J), 600 Pennsylvania Avenue NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed information requirements should be addressed to
Carole Reynolds or Soyong Cho, 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).
The FTC enforces these statutes as to all businesses engaged in
conduct these laws cover unless these businesses (such as federally
chartered or insured depository institutions) are subject to the
regulatory authority of another federal agency.
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
has published for public comment interim final rules for new
regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005
(Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR 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\
---------------------------------------------------------------------------
\1\ 12 CFR part 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011); 12
CFR 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); 12 CFR part 1013
(Reg. M) (76 FR 78500, Dec. 19, 2011); 12 CFR part 1026 (Reg. Z) (76
FR 79768, Dec. 22, 2011).
\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).
\3\ See Dodd-Frank Act, Sec. 1075 (these requirements are
implemented through Board Regulation II, 12 CFR part 235, rather
than EFTA's implementing Regulation E).
---------------------------------------------------------------------------
As a result of the Dodd-Frank Act, the FTC and the CFPB now 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. Because of this shared enforcement
jurisdiction, the two agencies have divided the FTC's previously-
cleared PRA burden between them,\4\ except that the FTC retained all of
the part of that burden associated with certain motor vehicle dealers
(for brevity, referred to in the burden summaries below as a ``carve-
out'').\5\ The division of PRA
[[Page 6115]]
burden hours not attributable to certain motor vehicle dealers is
reflected in the CFPB's recent PRA clearance requests to OMB,\6\ as
well as in the FTC's burden estimates below.
---------------------------------------------------------------------------
\4\ The CFPB also factored into its burden estimates respondents
over which it has jurisdiction but the FTC does not.
\5\ These are dealers specified by the Dodd-Frank Act under
Sec. 1029(a), but 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 ``carve-out'' for this PRA burden
analysis reflects a general estimated volume of motor vehicle
dealers. This attribution does not change actual enforcement
authority.
\6\ OMB Control Numbers 3170-0013 (Regulation B), 3170-0014
(Regulation E), 3170-0008 (Regulation M), and 3170-0015 (Regulation
Z)
---------------------------------------------------------------------------
As a result of the Dodd-Frank Act, the FTC generally has sole
authority to enforce Regulations B, E, M, and Z regarding motor vehicle
dealers predominantly engaged in the sale and servicing of motor
vehicles, the leasing and servicing of motor vehicles, or both.\7\
Because the FTC has exclusive jurisdiction to enforce these rules for
such motor vehicle dealers, it is including the entire PRA burden for
them in the burden estimates below.
---------------------------------------------------------------------------
\7\ See Dodd-Frank Act, Sec. 1029(a)-(c).
---------------------------------------------------------------------------
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 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).
---------------------------------------------------------------------------
\8\ PRA ``burden'' does not include effort expended in the
ordinary course of business, regardless of any regulatory
requirement. 5 CFR 1320.3(b)(2).
---------------------------------------------------------------------------
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 their 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. While this burden varies with the number of transactions,
the figures shown for transaction-related burden in the tables that
follow are estimated averages.
The required disclosures do not impose PRA burden on some covered
entities because they make those disclosures in their normal course of
activities. For other covered entities that do not, their compliance
burden will vary widely depending on the extent to which they have
developed effective computer-based or electronic systems and procedures
to communicate and document required disclosures.\9\
---------------------------------------------------------------------------
\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., notices 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.
---------------------------------------------------------------------------
Calculating the burden associated with the four regulations'
disclosure requirements is very difficult because of the highly diverse
group of affected entities. 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. 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 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.
---------------------------------------------------------------------------
\10\ The Commission generally does not have jurisdiction over
banks, thrifts, and federal credit unions under the applicable
regulations.
---------------------------------------------------------------------------
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 wage rates by the burden hours described above. The
hourly rates used were $49 for managerial oversight, $30 for skilled
technical services, and $16 for clerical work. These figures are
averages drawn from Bureau of Labor Statistics data.\11\ Further, the
FTC 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.
---------------------------------------------------------------------------
\11\ These inputs are based broadly on mean hourly data found
within the National Compensation Survey: Occupational Earnings in
the United States, 2010, Bulletin 2753 (May 2011), Table 3 (https://www.bls.gov/ncs/ocs/sp/nctb1477.pdf).
---------------------------------------------------------------------------
The applicable PRA requirements impose minimal capital or other
non-labor costs. Affected entities generally already have the necessary
equipment 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 ordinary course of business.
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 others.
Recordkeeping
FTC staff estimates that Regulation B's general recordkeeping
requirements affect 530,479 credit firms subject to the Commission's
jurisdiction, at an average annual burden of 1.25 hours per firm for a
total of 663,099 hours.\12\ Staff also
[[Page 6116]]
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 2.25 million credit applications (based on industry
data regarding the approximate number of mortgage purchase and
refinance originations), for a total of 37,500 hours.\13\ Staff also
estimates that recordkeeping of self-testing subject to the regulation
would affect 1,375 firms, with an average annual burden of one hour (of
skilled technical time) per firm, for a total of 1,375 hours, and that
recordkeeping of any corrective action as a result of self-testing
would affect 10% of them, i.e., 138 firms, with an average annual
burden of four hours (of skilled technical time) per firm, for a total
of 552 hours.\14\ Keeping records of race/national origin, sex, age,
and marital status requires an estimated one minute of skilled
technical time. Recordkeeping for the self-test responsibility and of
any corrective actions requires an estimated one hour and four hours,
respectively, of skilled technical time.
---------------------------------------------------------------------------
\12\ Section 1071 of the Dodd-Frank Act amends the ECOA to
require financial institutions to collect and report information
concerning credit applications by women- or minority-owned
businesses and small businesses, effective on the July 21, 2011
transfer date. Both the CFPB and the Board have exempted affected
entities from complying with this requirement until a date set by
the prospective final rules these agencies issue to implement the
Dodd-Frank Act's requirements. The Commission will address PRA
burden for its enforcement of these requirements after the CFPB and
the Board have issued the associated final rules.
\13\ Regulation B contains model forms that creditors may use to
gather and retain the required information.
\14\ In contrast to banks, for example, entities under FTC
jurisdiction are not subject to audits 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.
---------------------------------------------------------------------------
Disclosure
Regulation B requires that creditors (i.e., entities that regularly
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 various types of
mortgage credit to provide a copy of the appraisal report to applicants
or to notify them of their right to a copy of the report (and
thereafter provide a copy of the report, upon the applicant's request).
Finally, Regulation B also requires that for accounts which 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.\15\
---------------------------------------------------------------------------
\15\ The disclosure may be provided orally or in writing. The
model form provided by Regulation B assists creditors in providing
the written disclosure.
---------------------------------------------------------------------------
Burden Totals
Recordkeeping: 702,526 hours (625,977 + 76,549 carve-out for motor
vehicles); $12,720,734 ($11,384,370 + $1,336,364 carve-out for motor
vehicles), associated labor costs
Disclosures: 1,164,458 hours (1,032,206 + 132,252 carve-out for motor
vehicles); $37,146,184 ($32,927,330 + $4,218,854 carve-out for motor
vehicles), associated labor costs
Regulation B--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/monitoring \1\ Transaction-related \2\
----------------------------------------------------------------------------------------------------------------
Average burden
Disclosures Average burden Total setup/ Number of per Total Total burden
Respondents per respondent monitoring transactions transaction transaction (hours)
(hours) burden (hours) (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit history reporting............... 133,000 .25 33,250 66,309,750 .25 276,291 309,541
Adverse action notices................. 530,000 .75 397,500 106,096,000 .25 442,067 839,567
Appraisal notices...................... 5,000 .5 2,500 1,125,000 .25 4,688 7,188
Appraisal reports...................... 5,000 .5 2,500 1,125,000 .25 4,688 7,188
Self-test disclosures.................. 1,375 .5 688 68,750 .25 286 974
----------------------------------------------------------------------------------------------------------------
Total.............................. .............. .............. .............. ............... .............. .............. 1,164,458
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The estimates shown reflect a decrease in applicable mortgage entities regarding appraisal notices and appraisal reports. The figures assume that
approximately half of mortgage entities (.5 x 10,000, or 5,000 businesses) would not otherwise provide this information and thus would be affected.
The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
\2\ The above figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. They also assume that half of applicable mortgage
transactions (.5 x 2,250,000, or 1,125,000) would not otherwise provide the appraisal notices and reports and thus would be affected.
Regulation B--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
Required task ------------------------------------------------------------------------------------------------- Total cost ($)
Time (hours) Cost ($49/hr.) Time (hours) Cost ($30/hr.) Time (hours) Cost ($16/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General recordkeeping.................. 0 $0 66,310 $1,989,300 596,789 $9,548,624 $11,537,924
Other recordkeeping.................... 0 0 37,500 1,125,000 0 0 1,125,000
Recordkeeping of test.................. 0 0 1,375 41,250 0 0 41,250
Recordkeeping of corrective action..... 0 0 552 16,560 0 0 16,650
----------------------------------------------------------------------------------------------------------------
Total Recordkeeping............ .............. .............. .............. ............... .............. .............. 12,720,734
Disclosures:
Credit history reporting........... 30,954 1,516,746 278,587 8,357,610 0 0 9,874,356
[[Page 6117]]
Adverse action notices............. 83,957 4,113,893 755,610 22,668,300 0 0 26,782,193
Appraisal notices.................. 719 35,231 6,469 194,070 0 0 229,301
Appraisal reports.................. 719 35,231 6,469 194,070 0 0 229,301
Self-test disclosure............... 97 4,753 877 26,310 0 0 31,063
----------------------------------------------------------------------------------------------------------------
Total Disclosures.............. .............. .............. .............. ............... .............. .............. 37,146,214
----------------------------------------------------------------------------------------------------------------
Total Recordkeeping and .............. .............. .............. ............... .............. .............. 49,866,948
Disclosures...................
--------------------------------------------------------------------------------------------------------------------------------------------------------
2. Regulation E
The EFTA 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, etc. Staff estimates that Regulation E's
recordkeeping requirements affect 391,120 firms offering EFT 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 391,120
hours.
Burden Totals
Recordkeeping: 391,120 hours (375,881 + 15,239 carve-out); $6,805,488
($6,540,328 + $265,160 carve-out), associated labor costs
Disclosures: 4,019,797 hours (4,002,868 + 16,929 carve-out);
$128,236,961 ($127,696,924 + $540,037 carve-out), associated labor
costs
Regulation E: Disclosures --Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/monitoring Transaction-related
----------------------------------------------------------------------------------------------------------------
Average burden
Disclosures Average burden Total setup/ Number of per Total Total burden
Respondents per respondent monitoring transactions transaction transaction (hours)
(hours) burden (hours) (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial terms.......................... 50,000 .5 25,000 500,000 .02 167 25,167
Change in terms........................ 12,500 .5 6,250 16,500,000 .02 5,500 11,750
Periodic statements.................... 50,000 .5 25,000 600,000,000 .02 200,000 225,000
Error resolution....................... 50,000 .5 25,000 500,000 5 41,667 66,667
Transaction receipts................... 50,000 .5 25,000 2,500,000,000 .02 833,333 858,333
Preauthorized transfers \1\............ 257,620 .5 128,810 6,440,500 .25 26,835 155,645
Service provider notices............... 50,000 .25 12,500 500,000 .25 2,083 14,583
Govt. benefit notices.................. 5,000 .5 2,500 50,000,000 .25 208,333 210,833
ATM notices \2\........................ 250 .25 63 50,000,000 .25 208,333 208,396
Electronic check conversion \3\........ 57,620 .5 28,810 1,152,400 .02 384 29,194
Payroll cards \4\...................... 125 .5 63 500,000 3 25,000 25,063
Overdraft services \5\................. 50,000 .5 25,000 2,500,000 .02 833 25,833
Gift cards \6\......................... 50,000 .5 25,000 2,500,000,000 .02 833,333 858,333
Remittance transfers \7\
Disclosures........................ 35,000 1 35,000 18,000,000 1 300,000 335,000
Error resolution................... 35,000 1 35,000 36,000,000 1 600,000 635,000
Agent compliance................... 35,000 1 35,000 18,000,000 1 300,000 335,000
----------------------------------------------------------------------------------------------------------------
Total.......................... .............. .............. .............. ............... .............. .............. 4,019,797
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Estimated preauthorized transfers have increased from the FTC's previously cleared estimate.
\2\ Estimated ATM transactions have increased from the FTC's previously cleared estimate.
\3\ Estimated electronic check conversion has decreased from the FTC's previously cleared estimate.
\4\ Payroll card entities and transactions have increased greatly over the years, in large part due to the evolving economy as well as companies seeking
ways to cut costs and reduce the amount of paper used in daily operations.
\5\ Regulation E now covers overdraft services.
\6\ Regulation E now, in part, covers gift cards.
\7\ Regulation E now covers remittance transfers.
[[Page 6118]]
Regulation E: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
--------------------------------------------------------------------------------
Required task Time Cost ($49/ Time Time Total cost ($)
(hours) hr.) (hours) Cost ($30/hr.) (hours) Cost ($16/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping........................................... 0 0 35,762 1,072,860 321,858 5,149,728 6,222,588
Disclosures:
Initial terms....................................... 2,517 123,333 22,650 679,500 0 0 802,833
Change in terms..................................... 1,175 57,575 10,750 322,500 0 0 380,075
Periodic statements................................. 22,500 1,102,500 202,500 6,075,000 0 0 7,177,500
Error resolution.................................... 6,667 326,883 60,000 1,800,000 0 0 2,126,883
Transaction receipts................................ 85,833 4,205,817 772,500 23,175,000 0 0 27,380,817
Preauthorized transfers............................. 15,565 762,685 140,080 4,202,400 0 0 4,965,085
Service provider notices............................ 1,458 71,442 13,125 393,750 0 0 465,192
Govt. benefit notices............................... 21,083 1,033,067 189,750 5,692,500 0 0 6,725,567
ATM notices......................................... 20,840 1,021,160 187,556 5,626,680 0 0 6,647,840
Electronic check conversion......................... 2,919 143,031 26,275 788,250 0 0 931,281
Payroll cards....................................... 2,506 122,794 22,557 676,710 0 0 799,504
Overdraft services.................................. 2,583 126,567 23,250 697,500 0 0 824,067
Gift cards.......................................... 85,833 4,205,817 772,500 23,175,000 0 0 27,380,817
Remittance transfers:
Disclosures......................................... 33,500 1,641,500 301,500 9,045,000 0 0 10,686,500
Error resolution.................................... 63,500 3,111,500 571,500 17,145,000 0 0 20,256,500
Agent compliance.................................... 33,500 1,641,500 301,500 9,045,000 0 0 10,686,500
-----------------------------------------------------------------------------------------------
Total Disclosures............................... ......... ........... ........... .............. ......... .............. 128,236,961
Total Recordkeeping and Disclosures............. ......... ........... ........... .............. ......... .............. $135,042,449
--------------------------------------------------------------------------------------------------------------------------------------------------------
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.
Staff estimates that Regulation M's recordkeeping requirements
affect approximately 54,442 firms within the FTC's jurisdiction leasing
products to consumers at an average annual burden of one hour per firm,
for a total of 54,442 hours.
Burden Totals
Recordkeeping: 54,442 hours (40,558 + 13,884 carve-out);
$947,288 ($705,712 + $241,576 carve-out), associated labor costs
Disclosures: 68,403 hours (42,139 + 26,264 carve-out);
$2,182,050 ($1,344,217 + $837,833 carve-out), associated labor
costs
Regulation M: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Disclosures Setup/monitoring Transaction-related
----------------------------------------------------------------------------------------------------------------------------------------------
Total setup/ Average burden
Average burden monitoring Number of per Total Total burden
Respondents per respondent burden transactions transaction transaction (hours)
(hours) (minutes) (minutes) burden (hours)
----------------------------------------------------------------------------------------------------------------------------------------------
Motor Vehicle Leases\1\...................... 29,442 1 29,442 1,972,614 .50 16,438 45,880
Other Leases\2\.............................. 25,000 .50 12,500 250,000 .25 1,042 13,542
Advertising.................................. 13,471 .50 6,736 538,840 .25 2,245 8,981
----------------------------------------------------------------------------------------------------------
Total.................................... .............. .............. .............. .............. .............. .............. 68,403
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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. Sec. 1667(1); 12 CFR
Sec. 1013.2(e)(1). Leases up to $50,000 (plus an annual adjustment) are now covered, which increases the breadth of transactions subject to the
FTC's jurisdiction under Regulation M. This increase, however, is more than offset by the FTC now sharing PRA burden with the CFPB, which thus yields
a net decrease from past FTC estimates of the number of transactions.
\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. Sec. 1667(1); 12 CFR Sec.
1013.2(e)(1). The figures shown for respondents and transactions reflect a net decrease from prior FTC estimates, given current market conditions
and the new PRA burden sharing with the CFPB while also recognizing that the CLA and Regulation M now cover leases up to $50,000 (plus an annual
adjustment).
[[Page 6119]]
Regulation M: Recordkeeping and Disclosures--Cost
----------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical Total
----------------------------------------------------------------------------------
Required task Time Cost ($49/ Time Cost ($30/ Time Cost ($16/
(hours) hr.) (hours) hr.) (hours) hr.) Cost ($)
----------------------------------------------------------------------------------------------------------------
Recordkeeping................ 0 0 5,444 163,320 48,998 783,968 947,288
Disclosures:
Motor Vehicle Leases..... 4,588 224,812 41,292 1,238,760 0 0 1,463,572
Other Leases............. 1,354 66,346 12,188 365,640 0 0 431,986
Advertising.............. 898 44,002 8,083 242,490 0 $0 286,492
----------------------------------------------------------------------------------
Total Disclosures.... ......... ......... ......... ........... ......... ........... 2,182,050
Total Recordkeeping ......... ......... ......... ........... ......... ........... 3,123,338
and Disclosures.....
----------------------------------------------------------------------------------------------------------------
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.
FTC staff estimates that Regulation Z's recordkeeping requirements
affect approximately 530,479 entities subject to the Commission's
jurisdiction, at an average annual burden of 1.25 hours per entity, for
a total of 663,099 hours.
Burden Totals
Recordkeeping: 663,099 hours (586,900 + 76,199 carve-out); $11,537,924
($10,212,060 + $1,325,864 carve-out), associated labor costs
Disclosures: 12,000,274 hours (10,957,621 + 1,042,653 carve-out);
$382,858,568 ($349,597,924 + $33,260,644 carve-out), associated 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)
\2\ (hours) burden (hours) \3\ (minutes) burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
Initial terms...................... 45,000 .75 33,750 20,000,000 .375 125,000 158,750
Rescission notices \4\............. 1,875 .5 938 100,000 .25 417 1,355
Subsequent disclosures............. 10,000 .75 7,500 62,500,000 .188 195,833 203,333
Periodic statements................ 45,000 .75 33,750 1,750,000,000 .0938 2,735,833 2,769,583
Error resolution................... 45,000 .75 33,750 4,000,000 6 400,000 433,750
Credit and charge card accounts.... 25,000 .75 18,750 12,500,000 .375 78,125 96,875
Settlement of estate debts \5\..... 45,000 .75 33,750 1,000,000 .375 6,250 40,000
Special credit card requirements 25,000 .75 18,750 12,500,000 .375 78,125 96,875
\6\...............................
Home equity lines of credit \7\.... 1,875 .5 938 875,000 .25 3,646 4,584
College student credit card 2,500 .5 1,250 250,000 .25 1,042 2,292
marketing--ed. institutions \8\...
College student credit card 300 .75 225 18,000 .75 225 450
marketing--card issuer reports \9\
Posting and reporting of credit 25,000 .75 18,750 12,500,000 .375 78,125 96,875
card agreements \10\..............
Advertising........................ 100,000 .75 75,000 300,000 .75 3,750 78,750
Sale, transfer, or assignment of 1,875 .5 938 1,750,000 .25 7,292 8,230
mortgages \11\....................
[[Page 6120]]
Appraiser misconduct reporting \12\ 625,000 .75 468,750 12,500,000 .375 78,125 546,875
Closed-end credit:
Credit disclosures................. 380,480 .75 285,360 163,225,920 2.25 6,120,972 6,406,332
Rescission notices \13\............ 18,750 .5 9,375 7,500,000 1 125,000 134,375
Redisclosures \14\................. 200,000 .5 100,000 1,000,000 2.25 37,500 137,500
Variable rate mortgages \15\....... 17,500 .5 8,750 500,000 1.5 12,500 21,250
High rate/high-fee mortgages and 10,000 .5 5,000 125,000 1.5 3,125 8,125
higher priced mortgages \16\......
Reverse mortgages \17\............. 12,500 .5 6,250 43,750 1 729 6,979
Advertising........................ 240,240 .5 120,120 480,480 1 8,008 128,128
Private education loans \18\....... 100 .5 50 50,000 1.5 1,250 1,300
Sale, transfer, or assignment of 100,000 .5 50,000 5,000,000 .25 20,833 70,833
mortgages \19\....................
Appraiser misconduct reporting \20\ 625,000 .75 468,750 12,500,000 .375 78,125 546,875
----------------------------------------------------------------------------------------------------------------
Total open-end credit.......... .............. .............. .............. ............... .............. .............. 4,538,577
----------------------------------------------------------------------------------------------------------------
Total closed-end credit........ .............. .............. .............. ............... .............. .............. 7,461,697
----------------------------------------------------------------------------------------------------------------
Total credit................... .............. .............. .............. ............... .............. .............. 12,000,274
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $50,000 plus an annual adjustment
(except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in transactions. In some
instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to Regulation Z have increased
estimated PRA burden. The overall effect of these competing factors, combined with the FTC now sharing with the CFPB estimated PRA burden (for all but
certain motor vehicle dealers) yields a net decrease from the FTC's prior reported estimate for open-end credit and a net increase from the FTC's
prior burden estimate for closed-end credit.
\2\ Burden per respondent in many categories has increased compared to prior FTC estimates, due to changes in rules.
\3\ Burden per transaction in many categories has increased compared to prior FTC estimates, due to changes in rules.
\4\ Mortgages have decreased.
\5\ Regulation Z now requires disclosures for timely settlement of estate debts.
\6\ Regulation Z now has special credit card requirements.
\7\ Home equity lines of credit have decreased.
\8\ Regulation Z now requires higher education institutions to disclose credit card marketing agreements.
\9\ Regulation Z now requires card issuers to submit reports on college student credit card marketing.
\10\ Regulation Z now requires card issuers to post and report general credit card agreements.
\11\ Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
\12\ Regulation Z now requires reporting of appraiser misconduct.
\13\ Mortgages have decreased.
\14\ Regulation Z now has substantial redisclosure requirements. Previously, redisclosures were generally provided in the ordinary course of business.
Rule changes since set numerous procedures and circumstances for redisclosures.
\15\ Variable rate mortgages have decreased.
\16\ Mortgages have decreased.
\17\ Reverse mortgages have decreased.
\18\ Regulation Z now requires disclosures for private education loans.
\19\ Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
\20\ Regulation Z now requires reporting of appraiser misconduct.
Regulation Z: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled technical Clerical
---------------------------------------------------------------------------------
Required task Time Cost ($49/ Time Time Cost ($16/ Total cost ($)
(hours) hr.) (hours) Cost ($30/hr.) (hours) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping.......................................... 0 $0 66,310 $1,989,300 596,789 $9,548,624 $11,537,924
Open-end credit Disclosures:
Initial terms...................................... 15,875 777,875 142,875 4,286,250 0 0 5,064,125
[[Page 6121]]
Rescission notices................................. 135 6,615 1,220 36,600 0 0 43,215
Subsequent disclosures............................. 20,333 996,317 183,000 5,490,000 0 0 6,486,317
Periodic statements................................ 276,958 13,570,942 2,492,625 74,778,750 0 0 88,349,692
Error resolution................................... 43,375 2,125,375 390,375 11,711,250 0 0 13,836,625
Credit and charge card accounts.................... 9,688 474,712 87,187 2,615,610 0 0 3,090,322
Settlement of estate debts......................... 4,000 196,000 36,000 1,080,000 0 0 1,276,000
Special credit card requirements................... 9,688 474,712 87,187 2,615,610 0 0 3,090,322
Home equity lines of credit........................ 458 22,442 4,126 123,780 0 0 146,222
College student credit card marketing--ed 229 11,221 2,063 61,890 0 0 73,111
institutions......................................
College student credit card marketing--card issuer 45 2,205 405 12,150 0 0 14,355
reports...........................................
Posting and reporting of credit card agreements.... 9,688 474,712 87,187 2,615,610 0 0 3,090,322
Advertising........................................ 7,875 385,875 70,875 2,126,250 0 0 2,512,125
Sale, transfer, or assignment of mortgages......... 823 40,327 7,407 222,210 0 0 262,537
Appraiser misconduct reporting..................... 54,687 2,679,663 492,188 14,765,640 0 0 17,445,303
------------------------------------------------------------------------------------------------
Total open-end credit.......................... ........... ........... ........... .............. ........... ........... 144,780,593
--------------------------------------------------------------------------------------------------------------------------------------------------------
Closed-end credit Disclosures:
Credit disclosures................................. 640,633 31,391,017 5,765,699 172,970,970 0 0 204,361,987
Rescission notices................................. 13,437 658,413 120,938 3,628,140 0 0 4,286,553
Redisclosures...................................... 13,750 673,750 123,750 3,712,500 0 0 4,386,250
Variable rate mortgages............................ 2,125 104,125 19,125 573,750 0 0 677,875
High-rate/high-fee mortgages and higher priced 969 47,481 8,719 261,570 0 0 309,051
mortgages.........................................
Reverse mortgages.................................. 698 34,202 6,281 188,430 0 0 222,632
Advertising........................................ 12,813 627,837 115,315 3,459,450 0 0 4,087,287
Private education loans............................ 130 6,370 1,170 35,100 0 0 41,470
Sale, transfer, or assignment of mortgages......... 7,083 347,067 63,750 1,912,500 0 0 2,259,567
Appraiser misconduct reporting..................... 54,687 2,679,663 492,188 14,765,640 0 0 17,445,303
------------------------------------------------------------------------------------------------
Total closed-end credit........................ ........... ........... ........... .............. ........... ........... 238,077,975
------------------------------------------------------------------------------------------------
Total Disclosures.............................. ........... ........... ........... .............. ........... ........... 382,858,568
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Recordkeeping and Disclosures............ ........... ........... ........... .............. ........... ........... 394,396,492
--------------------------------------------------------------------------------------------------------------------------------------------------------
Request for Comment: You can file a comment online or on paper. For
the Commission to consider your comment, we must receive it on or
before April 9, 2012. Write ``Regs BEMZ, PRA Comments, P084812'' on
your comment. Your comment--including your name and your state--will be
placed on the public record of this proceeding, including to the extent
practicable, on the public Commission Web site, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries
to remove individuals' home contact information from comments before
placing them on the Commission Web site.
Because you comment will be made public, you are solely responsible
for making sure that your comment does not include any sensitive
personal information, like 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, like medical records or other individually identifiable
health information. In addition, do not include any ``[t]rade secret or
any commercial or financial information which is obtained from any
person and which is privileged or confidential'' as provided in Section
6(f) of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16CFR
4.10(a)(2). In particular, do not include competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns devices, manufacturing processes, or customer names.
If you want the Commission to give you comment confidential
treatment, you must file it in paper form, with a request for
confidential treatment, and you have to follow the procedure explained
in FTC Rule 4.9(c)).\16\ Your comment will be kept confidential only if
the FTC General Counsel, in his or her sole discretion, grants your
request in
[[Page 6122]]
accordance with the law and the public interest.
---------------------------------------------------------------------------
\16\ 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), CFR 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/RegsBEMZpra, by following the instructions on the web-based form.
If this Notice appears at https://www.regulations.gov/#!home, you also
may file a comment through that Web site.
If you file your comment on paper, write ``Regs BEMZ, PRA Comments,
P084812'' on your comment and on the envelope, and mail or deliver it
to the following address: Federal Trade Commission, Office of the
Secretary, Room H-113 (Annex J) 600 Pennsylvania Avenue NW.,
Washington, DC 20580. If possible, submit your paper comment to the
Commission by courier or overnight service.
Visit the Commission Web site at to read this Notice and the news
release describing it. 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
April 9, 2012. You can find more information, including routine uses
permitted by the Privacy Act, in the Commission's privacy policy, at
https://www.ftc.gov/ftc/privacy.htm.
Willard K. Tom,
General Counsel.
[FR Doc. 2012-2665 Filed 2-6-12; 8:45 am]
BILLING CODE 6750-01-P
