[Federal Register Volume 64, Number 245 (Wednesday, December 22, 1999)]
[Notices]
[Pages 71787-71792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33206]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: The Federal Trade Commission (FTC) has submitted to the Office 
of Management and Budget (OMB) for review under the Paperwork Reduction 
Act (PRA) information collection requirements associated with four 
current rules enforced by the Commission. Current clearances for this 
information collection expire on December 31, 1999. The FTC is 
requesting that OMB extend the paperwork clearances through December 
31, 2002.

DATES: Comments must be filed by January 21, 2000.

ADDRESSES: Send written comments to the Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10202, Washington, DC 20503, ATTN: Desk Officer 
for the Federal Trade Commission, and to Carole Reynolds, Attorney, 
Division of Financial Practices, Bureau of Consumer Protection, Federal 
Trade Commission, Washington, DC 20580, 202-326-3230. All comments 
should be identified as responding to this notice.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds at the address listed above.

SUPPLEMENTARY INFORMATION: The FTC has submitted a request to OMB to 
extend the existing clearances to collect information associated with 
the four rules described below. A Federal Register Notice with a 60-day 
comment period soliciting comments on this collection of information 
was published on October 15, 1999 (64 FR 55937). No comments were 
received.

    The four rules covered by this notice are:
    (1) Regulations promulgated under the Equal Credit Opportunity Act, 
15 U.S.C. 1691 et seq. (``ECOA'') (``Regulation B'') (Control Number: 
3084-0087);
    (2) Regulations promulgated under The Electronic Fund Transfer Act, 
15 U.S.C. 1693 et seq. (``EFTA'') (``Regulation E'') (Control Number: 
3084-0085);
    (3) Regulations promulgated under The Consumer Leasing Act, 15 
U.S.C. 1667 et seq., (``CLA'') (``Regulation M'') (Control Number: 
3084-0086)
    (4) Regulations promulgated under The Truth-In-Lending Act, 15 
U.S.C. 1601 et seq. (``TILA'') (``Regulation Z'') (Control Number: 
3084-0088)
    Each of these four rules impose certain PRA recordkeeping and 
disclosure requirements associated with providing credit or with other 
financial transactions. All of these rules require covered entities to 
keep certain records. Staff believes that many of these entities would 
likely retain these records in the normal course of business even 
absent the recordkeeping requirement in the rules.\1\ There is, 
however, some burden associated with ensuring that covered entities do 
not prematurely dispose of relevant records during the period of time 
required by the applicable rule.
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    \1\ 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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    Disclosure requirements involve both set-up and monitoring costs as 
well as certain transaction-specific costs. ``Set-up'' burden, incurred 
by new entrants only, includes identifying the applicable disclosure 
requirements, determining compliance obligations, and designing and 
developing compliance systems and procedures. ``Monitoring'' burden, 
incurred by all covered entities, includes reviewing revisions to 
regulatory requirements, revising compliance systems and procedures as 
necessary, and monitoring the ongoing operation of systems and 
procedures to ensure continued compliance. ``Transaction-related'' 
burden refers to the effort 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 actual range of compliance burden experienced by covered 
entities, and reflected in those averages, varies widely. Depending on 
the extent to which covered entities have developed automated systems 
and procedures for providing the required disclosures, and the efficacy 
of those systems and procedures, some entities may have little or no 
such burden, while others incur a higher burden.\2\
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    \2\ For example, large retailers may use automated means to 
provide required disclosures, such as issuing, en masse, notices of 
changes in terms. Smaller retailers and certain types of creditors 
may have less automated compliance systems, and thus may issue 
disclosures on an individual transaction basis, resulting in higher 
burden.
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    Calculating the burden associated with the four regulations' 
disclosure requirements is extremely difficult because of the highly 
diverse group of affected entities. The ``respondents'' included in the 
following burden calculations consist of all types of credit and lease 
advertisers, creditors (e.g., finance companies, mortgage companies, 
retailers, Internet businesses), financial institution (including new 
electronic commerce entities), service providers, certain government 
agencies and others involved in delivering electronic fund transfers of 
government benefits, and lessors (e.g., auto dealers, independent 
leasing companies, manufacturers' captive finance companies, furniture 
companies, computer dealers). The burden estimates represent staff's 
best assessment, based on its knowledge and expertise relating to the 
financial services industry. To derive these estimates, 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) types of electronic fund 
transfers (EFTs) used; (4) types and occurrences of adverse actions; 
(5) types of appraisal reports utilized; and (6) automation with regard 
to compliance operations.
    The estimated PRA burden associated with these rules, attributable 
to the Commission, is less today than in the past. Staff believes that 
as automation and expanded quality control become more pervasive in the 
financial services industry entities are able to comply more 
efficiently.
    The cost estimates shown below relate solely to labor costs. The 
applicable PRA requirements impose minimal

[[Page 71788]]

capital or other non-labor costs, as affected entities generally have 
the necessary equipment for other business purposes. Similarly, 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. The burden estimates 
shown below include the time necessary to train staff in compliance 
with the regulations.
    The following paragraphs discuss each of these rules, their 
particular PRA requirements, and staff's best estimates of the related 
hour and cost burdens.

I. Regulation B

    The ECOA prohibits discrimination in the extension of credit. 
Regulation B, 12 CFR part 202, promulgated by the Board of Governors of 
the Federal Reserve System, establishes both recordkeeping and 
disclosure requirements to assist consumers in understanding their 
rights under the ECOA and to assist in detecting unlawful 
discrimination. The FTC enforces the ECOA as to all creditors except 
those that are subject to the regulatory authority of another federal 
agency (such as federally chartered or insured depository 
institutions).
    Estimated annual hours burden: 2,560,000 hours, rounded (1,150,000 
recordkeeping hours + 1,409,499 disclosure hours).
    Recordkeeping: FTC staff estimates that Regulation B's general 
recordkeeping requirements affect 1,000,000 credit firms subject to the 
Commission's jurisdiction, at an average annual burden of one hour per 
firm, for a total of 1,000,000 hours. Staff also estimates that the 
requirement that creditors monitor information about race/national 
origin, sex, age, and marital status imposes a maximum burden of one 
minute each \3\ for approximately nine million credit applications 
(based on industry data regarding the approximate number of mortgage 
purchase and refinance originations), for a total of 150,000 hours. The 
total estimated recordkeeping burden is 1,150,000 hours.
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    \3\ Regulation B contains a model form that creditors may use to 
gather and retain the requirement information.
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    Disclosure: Regulation B requires that creditors (i.e., entities 
that regularly participate in the decision whether or not to extend 
credit under Regulation B) provide notices whenever they take adverse 
action. The Regulations also requires entities that extend various 
types of mortgage credit to provide a copy of the appraisal report and 
to notify applicants of their right to a copy of the report.
    As noted above, Regulation B applies to a highly diverse group of 
entities, including retailers, mortgage lenders, mortgage brokers, 
finance companies, Internet businesses, and others. In some instances 
where covered entities may make certain required disclosures in the 
ordinary course of business, the Regulation imposes no burden. In 
addition, some entities have developed highly automated means of 
providing the required disclosures, while others rely on methods 
requiring more manual effort. Thus, the following burden estimates are 
averages based on staff's best estimate of the burden incurred over an 
extremely board spectrum of covered entities.

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                                                                 Setup/monitoring\1\ average                      Transaction-related \2\
                                                            --------------------------------------------------------------------------------------------
                                                                                         Total
                         Disclosure                                         Average     setup/                       Average       Total        Total
                                                             Respondents  burden per  monitoring     Number of      burden per  transaction     burden
                                                                          respondent    burden      transactions   transaction     burden      (hours)
                                                                            (hours)     (hours)                     (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adverse action notices.....................................    1,000,000          .5     500,000      200,000,000          .25      833,333    1,333,333
Appraisal notices..........................................       22,000          .5      11,000        6,500,000          .25       27,083       38,083
Appraisal reports..........................................       22,000          .5      11,000        6,500,000          .25       27,083       38,083
                                                            --------------------------------------------------------------------------------------------
    Total..................................................  ...........  ..........  ..........  ...............  ...........  ...........    1,409,499
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\1\ With respect to appraisal notices and appraisal reports, the above figures assume that approximately half of applicable mortgage entities (.5 x
  44,000, or 22,000 businesses) would not otherwise provide this information and thus would be affected.
\2\ The above figures assume that half of applicable mortgage transactions (.5 x 13,000,000, or 6,500,000) would not otherwise provide the appraisal
  notices and reports and thus would be affected.

    Estimated annual cost burden: $46,418,000, rounded.
    Staff calculated labor costs by applying appropriate hourly cost 
figures to the burden hours described above. The hourly rates used 
below ($50 for managerial or professional time, $20 for skilled 
technical time, and $10 for clerical time) are averages.
    Recordkeeping: Staff estimates that the general recordkeeping 
responsibility of one hour per creditor would involve approximately 90 
percent clerical time and ten percent skilled technical time. Keeping 
records of race/national origin, sex, age, and marital status requires 
an estimated one minute of skilled technical time. As shown below, the 
total recordkeeping cost is $14,666,666.
    Disclosure: For each notice or information item listed, staff 
estimates that the burden hours consist of 10 percent managerial time 
and 90 percent skilled technical time. As shown below, the total 
disclosure cost is $32,418,477.

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                                                                     Managerial             Skilled technical             Clerical              Total
                                                             -------------------------------------------------------------------------------------------
                        Required task                             Time     Cost  ($50/      Time     Cost  ($20/      Time      Cost  (10/
                                                                (hours)        hr.)       (hours)        hr.)       (hours)        hr.)       Cost  ($)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General Recordkeeping.......................................            0            0      100,000   $2,000,000      900,000   $9,000,000   $11,000,000
Other Recordkeeping.........................................            0            0      150,000    3,000,000            0            0     3,000,000
                                                             -------------------------------------------------------------------------------------------
    Total Recordkeeping.....................................  ...........  ...........  ...........  ...........  ...........  ...........    14,666,666
                                                             ===========================================================================================
Adverse action notices......................................      133,333   $6,666,665    1,200,000   23,999,994            0            0    30,666,659

[[Page 71789]]

 
Appraisal notices...........................................        3,808      190,415       34,275      685,494            0            0       875,909
                                                             -------------------------------------------------------------------------------------------
Appraisal reports...........................................        3,808      190,415       34,275      685,494            0            0       875,909
                                                             -------------------------------------------------------------------------------------------
    Total Disclosure........................................  ...........  ...........  ...........  ...........  ...........  ...........    32,418,477
                                                             ===========================================================================================
    Total Recordkeeping and Disclosure......................  ...........  ...........  ...........  ...........  ...........  ...........    46,418,477
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Regulation E

    The EFTA requires accurate disclosure of the costs, terms, and 
rights relating to electronic fund transfer (EFT) services to 
consumers. Regulation E, 12 CFR part 205, promulgated by the Board of 
Governors of the Federal Reserve System, establishes both recordkeeping 
and disclosure requirements applicable to entities providing EFT 
services to consumers. The FTC enforces the EFTA as to all entities 
providing EFT services except those that are subject to the regulatory 
authority of another federal agency (such as federally chartered or 
insured depository institutions).
    Estimated annual hours burden: 3,579,000 hours (500,000 
recordkeeping hours + approximately 3,079,000 disclosure hours).
    Recordkeeping: Staff estimates that Regulation E's recordkeeping 
requirements affect 500,000 firms offering EFT services to consumers 
and subject to the Commission's jurisdiction, at an average annual 
burden of one hour per firm, for a total of 500,000 hours.
    Disclosure: As noted above, Regulation E applies to a highly 
diverse group of entities, including financial institutions (including 
certain retailers and electronic commerce entities), service providers, 
various federal and state agencies offering electronic fund transfers 
(EFTs), and others. In some instances, where covered entities may make 
certain required disclosures in the ordinary course of business, the 
Regulation imposes no burden. In addition, some entities have developed 
highly automated means of providing the required disclosures, while 
others rely on methods requiring more manual effort. Thus, the 
following burden estimates are averages based on staff's best estimate 
of the burden incurred over an extremely broad spectrum of covered 
entities.

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                                                                       Setup/monitoring                      Transaction-related
                                                            --------------------------------------------------------------------------------
                                                                                         Total                                                  Total
                         Disclosure                                         Average      setup                       Average       Total        burden
                                                             Respondents  burden per  monitoring     Number of      burden per  transaction    (hours)
                                                                          respondent    burden      transactions   transaction     burden
                                                                            (hours)     (hours)                     (minutes)     (hours)
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Initial terms..............................................      100,000          .5      50,000        1,000,000          .02          333       50,333
Change in terms............................................       25,000          .5      12,500       33,000,000          .02       11,000       23,500
Periodic statements........................................      100,000          .5      50,000    1,200,000,000          .02      400,000      450,000
Error resolution...........................................      100,000          .5      50,000        1,000,000            5       83,333      133,333
Transaction receipts.......................................      100,000          .5      50,000    5,000,000,000          .02    1,666,667    1,716,667
Preauthorized transfers....................................      500,000          .5     250,000        1,000,000          .25         4167      254,167
Service provider notices...................................      100,000         .25      25,000        1,000,000          .25         4167       29,167
Govt. benefit notices......................................       10,000          .5       5,000      100,000,000          .25      416,667      421,667
                                                            --------------------------------------------------------------------------------------------
    Total..................................................  ...........  ..........  ..........  ...............  ...........  ...........    3,078,834
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated annual cost burden: $76,313,000, rounded.
    Staff calculated labor costs by applying appropriate hourly cost 
figures to the burden hours described above. The hourly rates used 
below ($50 for managerial or professional time, $20 for skilled 
technical time, and $10 for clerical time) are averages.
    Recordkeeping: For the 500,000 recordkeeping hours, staff estimates 
that 10 percent of the burden hours require skilled technical time and 
90 percent require clerical time. As shown below, the total 
recordkeeping cost is $5,500,000.
    Disclosure: For each notice or information item listed, staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown below, the 
total disclosure cost is $70,813,182.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Managerial             Skilled technical             Clerical
                                                             ------------------------------------------------------------------------------  Total cost
                        Required task                             Time     Cost  ($50/      Time     Cost  ($20/      Time     Cost  ($10/       ($)
                                                                (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
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Recordkeeping...............................................            0           $0       50,000   $1,000,000      450,000   $4,500,000    $5,500,000
Disclosure:
    Initial terms...........................................        5,033      251,665       45,300      905,994            0            0    $1,157,659
    Change in terms.........................................        2,350      117,500       21,150      423,000            0            0       540,500
    Periodic statements.....................................       45,000    2,250,000      405,000    8,100,000            0            0    10,350,000
    Error resolution........................................       13,333      666,665      120,000    2,399,994            0            0     3,066,659
    Transaction receipts....................................      171,667    8,583,335    1,540,000   30,900,000            0            0     39,483,34

[[Page 71790]]

 
    Preauthorized transfers.................................       25,417    1,270,835      228,750    4,575,006            0            0      5,845,84
    Service provider notices................................        2,917      145,835       26,250      525,006            0            0        670,84
    Govt. benefit notices...................................       42,167    2,108,335      379,500    7,590,006            0            0      9,698,34
                                                             -------------------------------------------------------------------------------------------
        Total Disclosure....................................  ...........  ...........  ...........  ...........  ...........  ...........    70,813,182
                                                             ===========================================================================================
        Total Recordkeeping and Disclosures.................  ...........  ...........  ...........  ...........  ...........  ...........    76,313,182
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(Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.)

3. Regulation M

    The CLA requires accurate disclosure of the costs and terms of 
leases to consumers. Regulation M, 12 CFR part 213, promulgated by the 
Board of Governors of the Federal Reserve System, establishes 
disclosure requirements that assist consumers in comparison shopping 
and in understanding the terms of leases and recordkeeping requirements 
that assist enforcement of the CLA. The FTC enforces the CLA as to all 
lessors and advertisers except those that are subject to the regulatory 
authority of another federal agency (such as federally chartered or 
insured depository institutions).
    Estimated annual hours burden: 387,500 hours, rounded (200,000 
recordkeeping hours + 187,501 disclosure hours).
    Recordkeeping: Staff estimates that Regulation M's recordkeeping 
requirements affect 200,000 firms leasing products to consumers and 
subject to the Commission's jurisdiction, at an average annual burden 
of one hour per firm, for a total of 200,000 hours.
    Disclosure: As noted above, Regulation M applies to a highly 
diverse group of entities, including automobile 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, and diverse types of lease advertisers, and others. In some 
instances, where covered entities may make certain required disclosures 
in the ordinary course of business, the Regulation imposes no burden. 
In addition, some entities have developed highly automated means of 
providing the required disclosures, while others rely on methods 
requiring more manual effort. Thus, the following burden estimates are 
averages based on staff's best estimate of the burden incurred over an 
extremely broad spectrum of covered entities.

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                                                                       Setup/monitoring                             Transaction-related
                                                            --------------------------------------------------------------------------------------------
                                                                                         Total
                         Disclosure                                         Average     setup/                       Average       Total        Total
                                                             Respondents  burden per  monitoring     Number of      burden per  transaction     burden
                                                                          respondent    burden      transactions   transaction     burden      (hours)
                                                                            (hours)     (hours)                     (minutes)     (hours)
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Auto Leases \1\............................................      100,000         .75      75,000        5,000,000          .50       41,667      116,667
Other Leases \2\...........................................      100,000         .50      50,000        1,000,000          .25        4,167       54,167
Advertising................................................       25,000         .50      12,500        1,000,000          .25        4,167       16,667
                                                            --------------------------------------------------------------------------------------------
    Total..................................................  ...........  ..........  ..........  ...............  ...........  ...........      187,501
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\1\ This category focuses on consumer vehicle leases. The number of such leases--the largest category of consumer leases--has increased considerably in
  recent years. 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 C.F.R. Sec.  213.2(e)(1).
\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 C.F.R.
  Sec.  213.2(e)(1).

    Estimated annual cost burden: $6,513,000, rounded.
    Staff calculated labor costs by applying appropriate hourly cost 
figures to the burden hours described above. The hourly rates used 
below ($50 for managerial or professional time, $20 for skilled 
technical time, and $10 for clerical time) are averages.
    Recordkeeping: For the 200,000 recordkeeping hours, staff estimates 
that 10 percent of the burden hours require skilled technical time and 
90 percent require clerical time. As shown below, the total 
recordkeeping cost is $2,200,000.
    Disclosure: For each notice or information item listed, staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown below, the 
total disclosure cost is $4,312,523.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Managerial             Skilled technical             Clerical
                                                             ------------------------------------------------------------------------------  Total cost
                        Required task                             Time     Cost  ($50/      Time     Cost  ($20/      Time      Cost  (10/       ($)
                                                                (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...............................................            0            0       20,000      400,000    1,280,000    1,800,000     2,200,000

[[Page 71791]]

 
Disclosures:
    Auto Leases.............................................       11,667      583,335      105,000    2,100,006            0            0     2,683,341
    Other Leases............................................        5,417      270,835       48,750      975,006            0            0     1,245,841
    Advertising.............................................        1,667       83,335       15,000      300,000            0            0       383,341
                                                             -------------------------------------------------------------------------------------------
        Total Disclosures...................................  ...........  ...........  ...........  ...........  ...........  ...........     4,312,523
                                                             ===========================================================================================
        Total Recordkeeping and Disclosures.................  ...........  ...........  ...........  ...........  ...........  ...........    6,512,523
--------------------------------------------------------------------------------------------------------------------------------------------------------
(Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.)

4. Regulation Z

    The TILA was enacted to foster comparison credit shopping and 
informed credit decision making by requiring accurate disclosure of the 
costs and terms of credit to consumers. Regulation Z, 12 CFR part 226, 
promulgated by the Board of Governors of the Federal Reserve System, 
establishes both recordkeeping and disclosure requirements to assist 
consumers and the enforcement of the TILA. The FTC enforces the TILA as 
to all creditors and advertisers except those that are subject to the 
regulatory authority of another federal agency (such as federally 
chartered or insured depository institutions).
    Estimated annual hours burden: 20,473,000 hours, rounded (1,000,000 
recordkeeping hours + 19,472,916 disclosure hours).
    Recordkeeping: FTC staff estimates that Regulation Z's 
recordkeeping requirements affect approximately 1,000,000 firms 
offering credit and subject to the Commission's jurisdiction, at an 
average annual burden of one hour per firm, for a total of 1,000,000 
hours.
    Disclosure: Regulation Z disclosure requirements pertain to open-
end and closed-end credit. As noted above, the Regulation applies to a 
highly diverse group of entities, including retailers (such as 
department stores, appliance stores, discount retailers, medical-dental 
service providers, home improvement sellers, and newly-emerging 
electronic commerce retail operators); mortgage companies; finance 
companies; credit advertisers; auto dealerships; student loan 
companies; home fuel or power services (for furnaces, stoves, 
microwaves, and other heating, cooling or residential power equipment); 
credit advertisers; and others. In some instances, where covered 
entities may make certain required disclosures in the ordinary course 
of business, the Regulation imposes no burden. In addition, some 
entities have developed highly automated means of providing the 
required disclosures, while others rely on methods requiring more 
manual effort. Thus, the following burden estimates are averages based 
on staff's best estimate of the burden incurred over an extremely broad 
spectrum of covered entities.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Setup/monitoring                      Transaction-related
                                                            --------------------------------------------------------------------------------
                                                                                         Total                                                  Total
                         Disclosure                                         Average     setup/                       Average       Total        burden
                                                             Respondents  burden per  monitoring     Number of      burden per  transaction    (hours)
                                                                          respondent    burden      transactions   transaction     burden
                                                                            (hours)     (hours)                     (minutes)     (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
    Initial terms..........................................      100,000          .5      50,000       50,000,000          .25      208,333      258,333
    Rescission notices.....................................       50,000          .5      25,000          100,000          .25          417       25,417
    Change in terms........................................       25,000          .5      12,500      136,000,000         .125      283,333      295,833
    Periodic statements....................................      200,000          .5     100,000    4,800,000,000        .0625    5,000,000    5,100,000
    Error resolution.......................................      100,000          .5      50,000       10,000,000            5      833,333      883,333
    Credit and charge card accounts........................      100,000           1     100,000       50,000,000          .25      208,333      308,333
    Home equity lines of credit............................      100,000           1     100,000        5,000,000          .25       20,833      120,833
    Advertising............................................      250,000         .25      62,500          700,000           .5         5833       68,333
Closed-end credit:
    Credit disclosures.....................................      800,000         .50     400,000      330,000,000            2   11,000,000   11,400,000
    Rescission notices.....................................      200,000         .50     100,000       34,000,000            1      566,667      666,667
    Variable rate mortgages................................      100,000         .50      50,000        1,800,000            2       60,000      110,000
    High rate/high fee mortgages...........................      100,000         .50      50,000          500,000            2       16,667       66,667
    Reverse mortgages......................................       50,000         .50      25,000          150,000            1        2,500       27,500
    Advertising............................................      500,000         .25     125,000        1,000,000            1       16,667      141,667
                                                            ============================================================================================
        Total open-end credit..............................  ...........  ..........  ..........  ...............  ...........  ...........    7,060,415
        Total closed-end credit............................  ...........  ..........  ..........  ...............  ...........  ...........   12,412,501
                                                            --------------------------------------------------------------------------------------------
        Total credit.......................................  ...........  ..........  ..........  ...............  ...........  ...........   19,472,916
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Estimated annual cost burden: $458,877,000, rounded.
    Staff calculated labor costs by applying appropriate hourly cost 
figures to the burden hours described above. The hourly rates used 
below ($50 for

[[Page 71792]]

managerial or professional time, $20 for skilled technical time, and 
$10 for clerical time) are averages.
    Recordkeeping: For the 1,000,000 recordkeeping hours, staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown below, the total 
recordkeeping cost is $11,000,000.
    Disclosure: For each notice or information item listed, staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown below, the 
total disclosure cost is $447,877,068.

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Managerial             Skilled technical             Clerical
                                                             ------------------------------------------------------------------------------  Total cost
                        Required task                             Time     Cost  ($50/      Time     Cost  ($20/      Time      Cost  (10/       ($)
                                                                (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...............................................            0            0      100,000   $2,000,000      900,000   $9,000,000   $11,000,000
Open-end credit Disclosures:
Initial terms...............................................       25,833   $1,291,665      232,500   $4,649,994            0            0    $5,941,659
Rescission notices..........................................        2,542      127,085       22,875      457,506            0            0       584,491
Change in terms.............................................       29,583    1,479,165      266,250    5,324,994            0            0     6,804,159
Periodic statements.........................................      510,000   25,500,000    4,590,000   91,800,000            0            0   117,300,000
Error resolution............................................       88,333    4,416,665      795,000   15,899,994            0            0    20,316,659
Credit and charge card accounts.............................       30,833    1,541,665      277,500    5,549,994            0            0     7,091,659
Home equity lines of credit.................................       12,083      604,165      108,750    2,174,994            0            0     2,779,159
Advertising.................................................        6,833      341,665       61,500    1,229,994            0            0     1,571,659
                                                                                                                                           -------------
        Total open-end credit...............................  ...........  ...........  ...........  ...........  ...........  ...........   162,389,545
                                                             ===========================================================================================
Closed-end credit Disclosures:
Credit disclosures..........................................    1,140,000   57,000,000   10,260,000  205,200,000            0            0   262,200,000
Rescission notices..........................................       66,667    3,333,335      600,000   12,000,006            0            0    15,333,341
Variable rate mortgages.....................................       11,000      550,000       99,000    1,980,000            0            0     2,530,000
High rate/high fee mortgages................................        6,667      333,335       60,000    1,200,006            0            0     1,533,341
Reverse mortgages...........................................        2,750      137,500       24,750      495,000            0            0       632,500
Advertising.................................................       14,167      708,335      127,500    2,550,006            0            0     3,258,341
                                                             -------------------------------------------------------------------------------------------
        Total closed-end credit.............................  ...........  ...........  ...........  ...........  ...........  ...........   285,487,523
                                                             ===========================================================================================
        Total Disclosures...................................  ...........  ...........  ...........  ...........  ...........  ...........   447,877,068
        Total Recordkeeping and Disclosures:................  ...........  ...........  ...........  ...........  ...........  ...........   458,877,068
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(Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.)

Debra A. Valentine,
General Counsel.
[FR Doc. 99-33206 Filed 12-21-99; 8:45 am]
BILLING CODE 6750-01-M