# Agency Information Collection Activities; Proposed Collection; Comment Request; Extension

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2021-10285

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** May 17, 2021
- **Citation:** 86 FR 26725

## Text

FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension

AGENCY:

Federal Trade Commission.

ACTION:

Notice.

SUMMARY:

In accordance with the Paperwork Reduction Act of 1995 (“PRA”), the Federal Trade Commission (“FTC” or “Commission”) is seeking public comment on its proposal to extend for an additional three years the Office of Management and Budget clearances for information collection requirements in Regulations B, E, M, and Z, which are enforced by the Commission. These clearances expire on September 30, 2021.

DATES:

Comments must be filed by July 16, 2021.

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://www.regulations.gov,
by following the instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT:

Carole Reynolds or Stephanie Rosenthal, Attorneys, Division of Financial Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580, (202) 326-3224.

SUPPLEMENTARY INFORMATION:

The four regulations covered by this notice are:

(1) Regulations promulgated under the Equal Credit Opportunity Act, 15 U.S.C. 1691
et seq.
(“ECOA”) (“Regulation B”) (OMB Control Number: 3084-0087);

(2) Regulations promulgated under the Electronic Fund Transfer Act, 15 U.S.C. 1693
et seq.
(“EFTA”) (“Regulation E”) (OMB Control Number: 3084-0085);

(3) Regulations promulgated under the Consumer Leasing Act, 15 U.S.C. 1667
et seq.
(“CLA”) (“Regulation M”) (OMB Control Number: 3084-0086); and

(4) Regulations promulgated under the Truth-In-Lending Act, 15 U.S.C. 1601
et seq.
(“TILA”) (“Regulation Z”) (OMB Control Number: 3084-0088).

Type of Review:
Extension without change of currently approved collection.

Affected Public:
Private Sector: Businesses and other for-profit entities.

Discussion:
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), Public Law 111-203, 124 Stat. 1376 (2010), almost all rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred from the Board of Governors of the Federal Reserve System (Board) to the Consumer Financial Protection Bureau (CFPB) on July 21, 2011 (“transfer date”). To implement this transferred authority, the CFPB published new regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005 (Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR part 1026 (Regulation Z) for those entities under its rulemaking jurisdiction.
1

Although the Dodd-Frank Act transferred most rulemaking authority under ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking authority for certain motor vehicle dealers
2

under all of these statutes and also for certain interchange-related requirements under EFTA.
3

1
12 CFR pt. 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12 CFR pt. 1005 (Reg. E) (81 FR 25323, Apr. 28, 2016) 12 CFR pt. 1013 (Reg. M) (81 FR 25323, Apr. 28, 2016); 12 CFR pt. 1026 (Reg. Z) (81 FR 25323, Apr. 28, 2016).

2
Generally, these are dealers “predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.”
See
Dodd-Frank Act, § 1029, 12 U.S.C. 5519(a), (c).

3

See
Dodd-Frank Act, § 1075, 15 U.S.C. 1693 (these requirements are implemented through Board Regulation II, 12 CFR pt. 235, rather than EFTA's implementing Regulation E).

As a result of the Dodd-Frank Act, the FTC and the CFPB generally share the authority to enforce Regulations B, E, M, and Z for entities for which the FTC had enforcement authority before the Act, except for certain motor vehicle dealers.
4

Because of this shared enforcement jurisdiction, the two agencies have divided the FTC's previously-cleared PRA burden estimates between them,
5

except that the FTC has assumed all of the burden estimates associated with motor vehicle dealers
6

and state-chartered credit unions. The division of PRA burden hours not attributable to motor vehicle dealers and state-chartered credit unions is reflected in the CFPB's PRA clearance requests to OMB, as well as in the FTC's burden estimates below.

4
The FTC's enforcement authority includes state-chartered credit unions; other federal agencies also have various enforcement authority over credit unions. For example, for large credit unions (exceeding $10 billion in assets), the CFPB has certain authority. The National Credit Union Administration also has certain authority for state-chartered federally insured credit unions, and it additionally provides insurance for certain state-chartered credit unions through the National Credit Union Share Insurance Fund and examines credit unions for various purposes. There are approximately three state-chartered credit unions exceeding $10 billion in assets, and the CFPB assumes PRA burden for those entities. As of the fourth quarter of 2020, there were approximately 2,126 state-chartered credit unions—1,914 which were federally insured, an estimated 112 or more which were privately insured, and an estimated 100 or more in Puerto Rico which were insured by a quasi-governmental entity. Because of the difficulty in parsing out PRA burden for such entities in view of the overlapping authority, the FTC's figures include PRA burden for all state-chartered credit unions. However, in view of fluctuations due to COVID-19 and to avoid undercounting, we have retained the prior estimate of 2,300 state-chartered credit unions. As noted above, the CFPB's figures as to state-chartered credit unions include burden for those entities exceeding $10 billion in assets.
See generally
Dodd-Frank Act, §§ 1061, 1025, 1026. This attribution does not change actual enforcement authority. We also have retained the prior burden hours generally in the estimates below, in view of these considerations.

5
The CFPB also factors into its burden estimates respondents over which it has jurisdiction but the FTC does not.

6

See
Dodd-Frank Act § 1029, 12 U.S.C. 5519(a), as limited by subsection (b) as to motor vehicle dealers. Subsection (b) does not preclude CFPB regulatory oversight regarding, among others, businesses that extend retail credit or retail leases for motor vehicles in which the credit or lease offered is provided directly from those businesses, rather than unaffiliated third parties, to consumers. It is not practicable, however, for PRA purposes, to estimate the portion of dealers that engage in one form of financing versus another (and that would or would not be subject to CFPB oversight). Thus, FTC staff's PRA burden analysis reflects a general estimated volume of motor vehicle dealers. This attribution does not change actual enforcement authority.

Pursuant to the Dodd-Frank Act, the FTC generally has sole authority to enforce Regulations B, E, M, and Z regarding certain motor vehicle dealers predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, that, among other things, assign their contracts to unaffiliated third parties.
7

Because the FTC has exclusive jurisdiction to enforce these rules for such motor vehicle dealers and retains its concurrent authority with the CFPB for other types of motor vehicle dealers, and in view of the different types of motor vehicle dealers, the FTC retains the entire PRA burden for motor vehicle dealers in the burden estimates below.

7

See
Dodd-Frank Act § 1029, 12 U.S.C. 5519(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 submit reports, keep records, or provide information to a third party.
See
44 U.S.C. 3502(3); 5 CFR 1320.3(c).

All four of these regulations require covered entities to keep certain records, but FTC staff believes these records are kept in the normal course of business even absent the particular recordkeeping requirements.
8

Covered entities, however, may incur some burden associated with ensuring that they do not prematurely dispose of relevant records (
i.e.,
during the time

span they must retain records under the applicable regulation).

8
PRA “burden” does not include “time, effort, and financial resources” expended in the normal course of business, regardless of any regulatory requirement.
See
5 CFR 1320.3(b)(2).

The regulations also require covered entities to make disclosures to third parties. Related compliance involves set-up/monitoring and transaction-specific costs. “Set-up” burden, incurred only by covered new entrants, includes identifying the applicable required disclosures, determining how best to comply, and designing and developing compliance systems and procedures. “Monitoring” burden, incurred by all covered entities, includes their time and costs to review changes to regulatory requirements, make necessary revisions to compliance systems and procedures, and to monitor the ongoing operation of systems and procedures to ensure continued compliance. “Transaction-related” burden refers to the time and cost associated with providing the various required disclosures in individual transactions, thus, generally, of much lesser magnitude than “setup” and “monitoring” burden. The FTC's estimates of transaction time and volume are intended as averages. The population of affected motor vehicle dealers is one component of a much larger universe of such entities.

The required disclosures do not impose PRA burden on some covered entities because they make those disclosures in the normal course of business. For other covered entities that do not, their compliance burden will vary depending on the extent to which they have developed effective computer-based or electronic systems and procedures to communicate and document required disclosures.
9

9
For example, large companies may use computer-based and/or electronic means to provide required disclosures, including issuing some disclosures en masse,
e.g.,
notice of changes in terms. Smaller companies may have less automated compliance systems but may nonetheless rely on electronic mechanisms for disclosures and recordkeeping. Regardless of size, some entities may utilize compliance systems that are fully integrated into their general business operational system; if so, they may have minimal additional burden. Other entities may have incorporated fewer of these approaches into their systems and thus may have a higher burden.

The respondents included in the following burden calculations consist of, among others, credit and lease advertisers, creditors, owners (such as purchasers and assignees) of credit obligations, financial institutions, service providers, certain government agencies and others involved in delivering electronic fund transfers (“EFTs”) of government benefits, and lessors.
10

The burden estimates represent FTC staff's best assessment, based on its knowledge and expertise relating to the financial services industry, of the average time to complete the aforementioned tasks associated with recordkeeping and disclosure. Staff considered the wide variations in covered entities' (1) size and location; (2) credit or lease products offered, extended, or advertised, and their particular terms; (3) EFT types 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 wages by the burden hours described above. The hourly wages used were $60 for managerial oversight, $44 for skilled technical services, and $18 for clerical work. These figures are averages drawn from Bureau of Labor Statistics data.
11

Further, these cost estimates assume the following labor category apportionments, except where otherwise indicated below: Recordkeeping—10% skilled technical, 90% clerical; disclosure—10% managerial, 90% skilled technical.

11
These inputs are based broadly on mean hourly data found within the “Bureau of Labor Statistics, Economic News Release,” March 31, 2021, Table 1, “National employment and wage data from the Occupational Employment and Wage Statistics survey by occupation, May 2020.”
http://www.bls.gov/news.release/ocwage.t01.htm.

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 normal course of business.

The following discussion and tables present estimates under the PRA of recordkeeping and disclosure average time and labor costs, excluding that which FTC staff believes entities incur customarily in the normal course of business and information compiled and produced in response to FTC law enforcement investigations or prosecutions.
12

12

See
5 CFR 1320.4(a) (excluding information collected in response to, among other things, a federal civil action or “during the conduct of an administrative action, investigation, or audit involving an agency against specific individuals or entities”).

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.

FTC staff estimates that Regulation B's general recordkeeping requirements affect 530,762 credit firms subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per firm for a total of 663,453 hours. Staff also estimates that the requirement that mortgage creditors monitor information about race/national origin, sex, age, and marital status imposes a maximum burden of one minute each (of skilled technical time) for approximately 2.6 million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 43,333 hours.
13

Staff also estimates that recordkeeping of self-testing subject to the regulation would affect 1,500 firms, with an average annual burden of one hour (of skilled technical time) per firm, for a total of 1,500 hours, and that recordkeeping of any corrective action as a result of self-testing would affect 10% of them,
i.e.,
150 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a total of 600 hours.
14

This yields a total annual recordkeeping burden of 708,886 hours.

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 by the FTC for compliance with Regulation B; rather they may be subject to FTC investigations and enforcement actions. This may impact the level of self-testing (as specifically defined by Regulation B) in a given year, and staff has sought to address such factors in its burden estimates.

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 mortgage credit with first liens to provide a copy of the appraisal report or other written valuation to applicants.
15

Finally, Regulation B also requires that for accounts that spouses may use or for

which they are contractually liable, creditors who report credit history must do so in a manner reflecting both spouses' participation. Further, it requires creditors that collect applicant characteristics for purposes of conducting a self-test to disclose to those applicants that: (1) Providing the information is optional; (2) the creditor will not take the information into account in any aspect of the credit transactions; and (3) if applicable, the information will be noted by visual observation or surname if the applicant chooses not to provide it.
16

Burden estimates relating to the disclosures required under Regulation B and labor cost estimates are provided in the tables below.

15
While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the disclosure is provided by the CFPB, and is thus not a “collection of information” for PRA purposes. Accordingly, it is not included in burden estimates below.

16
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:
708,886 hours; $15,666,176, associated labor costs.

Disclosures:
1,088,912 hours; $49,654,400, associated labor costs.

Regulation B—Disclosures—Burden Hours

Disclosures

Setup/monitoring
1

Respondents

Average
burden per
respondent
(hours)

Total setup/
monitoring
burden
(hours)

Transaction-related

Number of
transactions

Average
burden per
transaction
(minutes)

Total
transaction
burden
(hours)

Total
burden
(hours)

Credit history reporting
133,553
.25
33,388
60,098,850
.25
250,412
283,800

Adverse action notices
530,762
.75
398,072
92,883,350
.25
387,014
785,086

Appraisal reports/written valuations
4,650
1
4,650
1,725,150
.50
14,376
19,026

Self-test disclosures
1,500
.5
750
60,000
.25
250
1,000

Total

1,088,912

1
The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations.

Regulation B—Recordkeeping and Disclosures—Cost

Required task
Managerial

Time
(hours)

Cost
($60/hr.)

Skilled technical

Time
(hours)

Cost
($44/hr.)

Clerical

Time
(hours)

Cost
($18/hr.)

Total cost
($)

General recordkeeping
0
$0
66,345
$2,919,180
597,108
$10,747,944
$13,667,124

Other recordkeeping
0
0
43,333
1,906,652
0
0
1,906,652

Recordkeeping of self-test
0
0
1,500
66,000
0
0
66,000

Recordkeeping of corrective action
0
0
600
26,400
0
0
26,400

Total Recordkeeping

15,666,176

Disclosures:

Credit history reporting
28,380
1,702,800
255,420
11,238,480
0
0
12,941,280

Adverse action notices
78,509
4,710,540
706,577
31,089,388
0
0
35,799,928

Appraisal reports
1,903
114,180
17,123
753,412
0
0
867,592

Self-test disclosure
100
6,0000
900
39,600
0
0
45,600

Total Disclosures

49,654,400

Total Recordkeeping and Disclosures

65,320,576

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, prepaid account entities, etc. Staff estimates that Regulation E's recordkeeping requirements affect 251,053 firms offering EFT and certain other services to consumers and that are subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 251,053 hours. Burden estimates relating to the disclosures required under Regulation E and labor cost estimates are provided in the tables below.

Burden Totals

Recordkeeping:
251,053 hours; $5,171,684, associated labor costs.

Disclosures:
7,184,903 hours; $327,631,676, associated labor costs.

Regulation E—Disclosures—Burden Hours

Disclosures
Setup/monitoring
Respondents

Average
burden per
respondent
(hours)

Total setup/
monitoring
burden
(hours)

Transaction-related

Number of
transactions

Average
burden per
transaction
(minutes)

Total
transaction
burden
(hours)

Total
burden
(hours)

Initial terms
27,300
.5
13,650
273,000
.02
91
13,741

Change in terms
8,550
.5
4,275
11,286,000
.02
3,762
8,037

Periodic statements
27,300
.5
13,650
327,600,000
.02
109,200
122,850

Error resolution
27,300
.5
13,650
273,000
5
22,750
36,400

Transaction receipts
27,300
.5
13,650
1,375,000,000
.02
458,333
471,983

Preauthorized transfers
258,553
.5
129,277
6,463,825
.25
26,933
156,210

Service provider notices
20,000
.25
5,000
200,000
.25
833
5,833

ATM notices
125
.25
31
25,000,000
.25
104,167
104,198

Electronic check conversion
48,553
.5
24,277
728,295
.02
243
24,520

Overdraft services
15,000
.5
7,500
1,500,000
.02
500
8,000

Gift cards
15,000
.5
7,500
750,000,000
.02
250,000
257,500

Remittance transfers:

Disclosures
4,800
1.25
6,000
96,000,000
.9
1,440,000
1,446,000

Error resolution
4,800
1.25
6,000
120,960,000
.9
1,814,400
1,820,400

Agent compliance
4,800
1.25
6,000
96,000,000
.9
1,440,000
1,446,000

Prepaid accounts and gov't benefits:

Disclosures
550

1
40 × 10

220,000
2,750,000,000
.02
916,667
1,136,667

Disclosures—updates
138
1 × 10

2
1,380

N/A

1,380

Access to account information
550

3
20 ×10

110,000
1,100,000
.01
183
110,183

Error resolution
300
4 × 4
4,800
275,000
2
9,167
13,967

Error resolution—followup
4

N/A

1,380
30
690
690

Submission of agreements
138
2 × 1
276
690
1
11
287

Updates to agreements
5

N/A

690
5
57
57

Total

7,184,903

1
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

2
Individual burden hours are listed first, followed by the number of programs.

3
Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs.

4
This pertains to prepaid accounts.

5
This pertains to prepaid accounts' agreements.

Regulation E—Recordkeeping and Disclosures—Cost

Required task
Managerial

Time
(hours)

Cost
($60/hr.)

Skilled technical

Time
(hours)

Cost
($44/hr.)

Clerical

Time
(hours)

Cost
($18/hr.)

Total cost
($)

Recordkeeping
0
$0
25,105
$1,104,620
225,948
$4,067,064
$5,171,684

Disclosures:

Initial terms
1,374
82,440
12,367
544,148
0
0
626,588

Change in terms
804
48,240
7,233
318,252
0
0
366,492

Periodic statements
12,285
737,100
110,565
4,864,860
0
0
5,601,960

Error resolution
3,640
218,400
32,760
1,441,440
0
0
1,659,840

Transaction receipts
47,198
2,831,880
424,785
18,690,540
0
0
21.522,420

Preauthorized transfers
15,621
937,260
140,589
6,185,916
0
0
7,123,176

Service provider notices
583
34,980
5,250
231,000
0
0
265,980

ATM notices
10,420
625,200
93,778
4,126,232
0
0
4,751,432

Electronic check conversion
2,452
147,120
22,068
970,992
0
0
1,118,112

Overdraft services
800
48,000
7,200
316,800
0
0
364,800

Gift cards
25,750
1,545,000
231,750
10,197,000
0
0
11,742,000

Remittance transfers:

Disclosures
144,600
8,676,000
1,301,400
57,261,600
0
0
65,937,600

Error resolution
182,040
10,922,400
1,638,360
72,087,840
0
0
83,010,240

Agent compliance
144,600
8,676,000
1,301,400
57,261,600
0
0
65,937,600

Prepaid accounts and gov't. benefits:

Disclosures
113,667
6,820,020
1,023,000
45,012,000
0
0
51,832,020

Disclosures—updates
138
8,2808
1,242
54,648
0
0
62,928

Access to account information
11,018
661,080
99,165
4,363,260
0
0
5,024,340

Error resolution
1,397
83,820
12,570
553,080
0
0
636,900

Error resolution—followup
69
4,140
621
27,324
0
0
31,464

Submission of agreements
29
1,740
259
11,396
0
0
13,136

Updates to agreements
6
360
52
2,288
0
0
2,648

Total Disclosures

327,631,676

Total Recordkeeping and Disclosures

332,803,360

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 30,203 firms within the FTC's jurisdiction leasing products to consumers at an average annual burden of one hour per firm, for a total of 30,203 hours. Burden estimates relating to the disclosures required under Regulation M and labor cost estimates are provided in the tables below.

Burden Totals
17

17
Recordkeeping and disclosure burden estimates for Regulation M are more substantial for motor vehicle leases than for other leases, including burden estimates based on market changes and regulatory definitions of coverage. Based on industry information, the estimates for recordkeeping and disclosure costs assume the following: 90% managerial, and 10% skilled technical. As noted above, for purposes of PRA burden calculations for Regulations B, E, M, and Z, and given the different types of motor vehicle dealers, the FTC is including in its estimates burden for all of them.

Recordkeeping:
30,203 hours; $1,763,860, associated labor costs.

Disclosures:
71,750 hours; $4,190,200, associated labor costs.

Regulation M—Disclosures—Burden Hours

Disclosures
Setup/monitoring
Respondents

Average
burden per
respondent
(hours)

Total setup/
monitoring
burden
(hours)

Transaction-related

Number of
transactions

Average
burden per
transaction
(minutes)

Total
transaction
burden
(hours)

Total
burden
(hours)

Motor Vehicle Leases
1

26,690
1
26,690
4,000,000
.50
33,333
60,023

Other Leases
2

3,513
.50
1,757
60,000
.25
250
2,007

Advertising
14,615
.50
7,308
578,960
.25
2,412
9,720

Total

71,750

1
This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.)
See
15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). CLA and Regulation M now cover leases up to $58,300 plus an annual adjustment.

2
This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.)
See
15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). CLA and Regulation M now cover leases up to $58,300 plus an annual adjustment.

Regulation M—Recordkeeping and Disclosures—Cost

Required task
Managerial

Time
(hours)

Cost
($60/hr.)

Skilled technical

Time
(hours)

Cost
($44/hr.)

Clerical

Time
(hours)

Cost
($18/hr.)

Total cost
($)

Recordkeeping
27,183
$1,630,980
3,020
$132,880
0
$0
$1,763,860

Disclosures:

Motor Vehicle Leases
54,021
3,241,260
6,002
264,088
0
0
3,505,348

Other Leases
1,806
108,360
201
8,844
0
0
117,204

Advertising
8,748
524,880
972
42,768
0
0
567,648

Total Disclosures

4,190,200

Total Recordkeeping and Disclosures

5,954,060

4. Regulation Z

The TILA was enacted to foster comparison credit shopping and informed credit decisionmaking by requiring creditors and others to provide accurate disclosures regarding the costs and terms of credit to consumers. Regulation Z implements the TILA, establishing disclosure requirements to assist consumers and recordkeeping requirements to assist agencies with enforcement. These requirements pertain to open-end and closed-end credit and apply to various types of entities, including mortgage companies; finance companies; auto dealerships; private education loan companies; merchants who extend credit for goods or services; credit advertisers; acquirers of mortgages; and others. Additional requirements also exist in the mortgage area, including for high cost mortgages, higher-priced mortgage loans,
18

ability to pay of mortgage consumers, mortgage servicing, loan originators, and certain integrated mortgage disclosures. FTC staff estimates that Regulation Z's recordkeeping requirements affect approximately 430,762 entities subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per entity with .25 additional hours per entity for 3,650 entities (ability to pay), and 5 additional hours per entity for 4,500 entities (loan originators). This yields a total annual recordkeeping burden of 561,866 hours. Burden estimates relating to the disclosures required under Regulation Z and labor cost estimates are provided in the tables below.

18
While Regulation Z also requires the creditor to provide a short written disclosure regarding the appraisal process for higher-priced mortgage loans, the disclosure is provided by the CFPB. As a result, it is not a “collection of information” for PRA purposes (
see
5 CFR 1320.3(c)(2)). It is thus excluded from the burden estimates below.

Burden Totals

Recordkeeping:
561,866 hours; $11,574,450, associated labor costs.

Disclosures:
7,854,575 hours; $358,169,628, associated labor costs.

Regulation Z—Disclosures—Burden Hours

Disclosures
1

Setup/monitoring
Respondents

Average
burden per
respondent
(hours)

Total setup/
monitoring
burden
(hours)

Transaction-related

Number of
transactions

Average
burden per
transaction
(minutes)

Total
transaction
burden
(hours)

Total
burden
(hours)

Open-end credit:

Initial terms
23,650
.75
17,738
10,500,600
.375
65,629
83,367

Initial terms—prepaid accounts
3

2
4 × 1

12

3
3 × 78,667

.125
492
504

Rescission notices
750
.5
375
3,750
.25
16
391

Subsequent disclosures
4,650
.75
3,488
23,250,000
.188
72,850
76,338

Subsequent disclosures—prepaid accounts
3

4
4 × 1

12

5
3 × 78,667

.0625
246
258

Periodic statements
23,650
.75
17,738
788,325,450
.0938
1,232,415
1,250,153

Periodic statements—prepaid accounts
3

6
40 × 1

120

7
3 × 944,000

.03125
1,475
1,595

Error resolution
23,650
.75
17,738
2,104,850
6
210,485
228,223

Error resolution—prepaid accounts followup
3

8
4 × 1

12

9
3 × 1,180

15
885
897

Credit and charge card accounts
10,250
.75
7,688
5,125,000
.375
32,031
39,719

Credit and charge card accounts—prepaid accounts
3

10
4 × 1

12

11
3 × 12

240
144
156

Settlement of estate debts
23,650
.75
17,738
496,650
.375
3,104
20,842

Special credit card requirements
10,250
.75
7,688
5,125,000
.375
32,031
39,719

Home equity lines of credit
750
.5
375
5,250
.25
22
397

Home equity lines of credit high-cost mortgages
250
2
500
1,500
2
50
550

College student credit card marketing—ed. institutions
1,350
.5
675
81,000
.25
338
1,013

College student credit card marketing—card issuer reports
150
.75
113
4,500
.75
56
169

Posting and reporting of credit card agreements
10,250
.75
7,688
5,125,000
.375
32,031
39,719

Posting and reporting of prepaid account agreements
3

12
.75 × 1

2

13
3 × 5

2.5
1
3

Advertising
38,650
.75
28,988
115,950
.75
1,449
30,437

Advertising—prepaid accounts
3

14
20 × 1

60
N/A

60

Advertising—prepaid accounts Updates
3

15
0.2 × 5

3
N/A

3

Sale, transfer, or assignment of mortgages
500
.5
250
500,000
.25
2,083
2,333

Appraiser misconduct reporting
301,150
.75
225,863
6,023,000
.375
37,644
263,507

Mortgage servicing
1,500
.75
1,125
150,000
.5
1,250
2,375

Loan originators
2,250
2
4,500
22,500
5
1,875
6,375

Closed-end credit:

Credit disclosures
280,762
.75
210,572
112,304,800
2.25
4,211,430
4,422,002

Rescission notices
3,650
.5
1,825
5,475,000
1
91,250
93,075

Redisclosures
101,150
.5
50,575
505,750
2.25
18,966
69,541

Integrated mortgage disclosures
3,650
10
36,500
10,950,000
3.5
638,750
675,250

Variable rate mortgages
3,650
1
3,650
365,000
1.75
10,646
14,296

High cost mortgages
1,750
1
1,750
43,750
2
1,458
3,208

Higher priced mortgages
1,750
1
1,750
14,000
2
467
2,217

Reverse mortgages
3,025
.5
1,513
15,125
1
252
1,765

Advertising
205,762
.5
102,881
2,057,620
1
34,294
137,175

Private education loans
75
.5
38
30,000
1.5
750
788

Sale, transfer, or assignment of mortgages
48,850
.5
24,425
2,442,500
.25
10,177
34,602

Ability to pay/qualified mortgage
3,650
.75
2,738
0
0
0
2,738

Appraiser misconduct reporting
301,150
.75
225,863
6,023,000
.375
37,644
263,507

Mortgage servicing
3,650
1.5
5,475
730,000
2.75
33,458
38,933

Loan originators
2,250
2
4,500
22,500
5
1,875
6,375

Total open-end credit

2,089,103

Total closed-end credit

5,765,472

Total credit

7,854,575

1
Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $58,300 plus an annual adjustment (except that real estate credit and private education loans are covered regardless of amount).

2
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

3
This figure lists the number of entities followed by the number of responses or programs each.

4
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

5
This figure lists the number of entities followed by the number of responses or programs each.

6
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

7
This figure lists the number of entities followed by the number of responses or programs each.

8
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

9
This figure lists the number of entities followed by the number of responses or programs each.

10
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

11
This figure lists the number of entities followed by the number of responses or programs each.

12
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

13
This figure lists the number of entities followed by the number of responses or programs each.

14
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

15
Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.

Regulation Z—Recordkeeping and Disclosures—Cost

Required task
Managerial

Time
(hours)

Cost
($60/hr.)

Skilled technical

Time
(hours)

Cost
($44/hr.)

Clerical

Time
(hours)

Cost
($18/hr.)

Total cost
($)

Recordkeeping
0
$0
56,187
$2,472,228
505,679
$9,102,222
$11,574,450

Open-end credit Disclosures:

Initial terms
8,337
500,220
75,030
3,301,220
0
0
3,301,540

Initial terms—prepaid accounts
50
3,000
454
19,776
0
0
22,976

Rescission notices
39
2,340
352
15,488
0
0
17,828

Subsequent disclosures
7,634
458,040
68,704
3,022,976
0
0
3,481,016

Subsequent disclosures—prepaid accounts
26
1.560
232
10,208
0
0
11,768

Periodic statements
125,015
7,500,900
1,125,138
49,506,072
0
0
57,006,972

Periodic statements—prepaid accounts
159
9,540
1436
63,184
0
0
72,724

Error resolution
22,822
1,369,320
205,401
9,037,644
0
0
10,406,964

Error resolution—prepaid accounts followup
90
5,400
807
35,508
0
0
40,908

Credit and charge card accounts
3,972
238,320
35,747
1,572,868
0
0
1,811,188

Credit and charge card accounts—prepaid accounts
16
960
140
6,160
0
0
7,120

Settlement of estate debts
2,084
125,040
18,758
825,352
0
0
950,392

Special credit card requirements
3,972
238,320
35,747
1,572,868
0
0
1,811,188

Home equity lines of credit
40
2,400
357
15,708
0
0
18,108

Home equity lines of credit—high cost mortgages
55
3,300
495
21,780
0
0
25,080

College student credit card marketing—ed institutions
101
6,060
912
40,128
0
0
46,188

College student credit card marketing—card issuer reports
17
1,020
152
6,688
0
0
7,708

Posting and reporting of credit card agreements
3,972
238,320
35,747
1,572,868
0
0
1,811,188

Posting and reporting of prepaid accounts
1
60
2
88
0
0
148

Advertising
3,044
182,640
27,393
1,205,292
0
0
1,388,932

Advertising—prepaid accounts
6
360
54
2,376
0
0
2,736

Advertising—prepaid accounts Updates
1
60
2
88
0
0
148

Sale, transfer, or assignment of mortgages
233
13,980
2,100
92,400
0
0
106,380

Appraiser misconduct reporting
26,351
1,581,060
237,156
10,434,864
0
0
12,015,924

Mortgage servicing
238
14,280
2,137
94,028
0
0
108,308

Loan originators
638
38,280
5,737
252,428
0
0
290,708

Total open-end credit

95,264,140

Closed-end credit Disclosures:

Credit disclosures
442,200
26,532,000
3,979,802
175,111,288
0
0
201,643,208

Rescission notices
9,308
558,480
83,767
3,685,748
0
0
4,244,228

Redisclosures
6,954
417,240
62,587
2,753,828
0
0
3,171,068

Integrated mortgage disclosures
67,525
4,051,500
607,725
26,739,900
0
0
30,791,400

Variable rate mortgages
1,430
85,800
12,866
566,104
0
0
651,904

High cost mortgages
321
19,260
2,887
127,028
0
0
146,288

Higher priced mortgages
222
13,320
1,995
87,780
0
0
101,100

Reverse mortgages
177
10,620
1,588
69,872
0
0
80,492

Advertising
13,718
823,080
123,457
5,432,108
0
0
6,255,188

Private education loans
79
4,740
709
31,196
0
0
35,936

Sale, transfer, or assignment of mortgages
3,460
207,600
31,142
1,370,248
0
0
1,577,848

Ability to pay/qualified mortgage
274
16,440
2,464
108,416
0
0
124,856

Appraiser misconduct reporting
26,351
1,581,060
237,156
10,434,864
0
0
12,015,924

Mortgage servicing
3,893
233,580
35,040
1,541,760
0
0
1,775,340

Loan originators
638
38,280
5,737
252,428
0
0
290,708

Total closed-end credit

262,905,488

Total Disclosures

358,169,628

Total Recordkeeping and Disclosures

369,744,078

Request for Comment:

Pursuant to Section 3506(c)(2)(A) of the PRA, the FTC invites comments on: (1) Whether the disclosure requirements are necessary, including whether the information will be practically useful; (2) the accuracy of our burden estimates, including whether the methodology and assumptions used are useful; (3) ways to enhance the quality, utility, and clarity of the information to be collected; and (4) ways to minimize the burden of providing the required information to consumers.

You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before July 16, 2021. 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 the
https://www.regulations.gov
website.

Because of the public health emergency in response to the COVID-19 outbreak and the agency's heightened security screening, postal mail addressed to the Commission will be subject to delay. We strongly encourage

you to submit your comment online through the
https://www.regulations.gov
website. To ensure the Commission considers your online comment, please follow the instructions on the web-based form.

If you file your comment on paper, write “Regs BEMZ, PRA Comments, P084812” on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), Washington, DC 20580; or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC 20024. If possible, please submit your paper comment to the Commission by courier or overnight service.

Because your comment will be placed on
https://www.regulations.gov,
you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security number, date of birth, driver's license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any “trade secret or any commercial or financial information which . . . is privileged or confidential,” as provided by section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2), including in particular, competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names.

Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled “Confidential,” and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. Your comment will be kept confidential only if the FTC General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on
https://www.regulations.gov,
we cannot redact or remove your comment from that website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request.

The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before July 16, 2021. For information on the Commission's privacy policy, including routine uses permitted by the Privacy Act, see
https://www.ftc.gov/siteinformation/privacy-policy.

Josephine Liu,
Assistant General Counsel for Legal Counsel.

[FR Doc. 2021-10285 Filed 5-14-21; 8:45 am]
BILLING CODE 6750-01-P

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2021-10285. Public record. Not legal advice.