[Federal Register Volume 73, Number 225 (Thursday, November 20, 2008)]
[Notices]
[Pages 70347-70354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-27534]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Proposed Collection; 
Comment Request

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 March 31, 
2012 the current PRA clearances for information collection requirements 
contained in four consumer financial regulations promulgated by the 
Federal Reserve Board and enforced by the Commission. Those clearances 
expire on March 31, 2009.

DATES: Comments must be received on or before January 20, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Regs BEMZ, 
PRA Comment, FTC File No. P084812'' to facilitate the organization of 
comments. Please note that comments will be placed on the public record 
of this proceeding--including on the publicly accessible FTC website, 
at (http://www/ftc.gov/os/publiccomments.shtm) -- and therefore should 
not include any sensitive or confidential information. In particular, 
comments should not include any sensitive personal information, such as 
an individual'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. Comments also should not include any sensitive 
health information, such as medical records or other individually 
identifiable health information. In addition, comments should not 
include any ``[t]rade secrets and commercial or financial information 
obtained from a person and 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), 16 CFR 4.10(a)(2). 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).\1\
---------------------------------------------------------------------------

    \1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    Because paper mail addressed to the FTC is subject to delay to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://secure.commentworks.com/ftc-RegsBEMZ) (and following the instructions 
on the web-based form). To ensure that the Commission considers an 
electronic comment, you must file it on the web-based form at the 
weblink (https://secure.commentworks.com/ftc-RegsBEMZ). If this Notice 
appears at (http://www.regulations.gov/search/index.jsp), you may also 
file an electronic comment through that website. The Commission will 
consider all comments that regulations.gov forwards to it.
    A comment filed in paper form should include the ``Regs BEMZ, PRA 
Comment, FTC File No. P084812`` reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-135 (Annex 
J), 600 Pennsylvania Avenue NW, Washington, DC 20580. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions.
    The FTC Act and other laws 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, whether filed in paper or electronic 
form. Comments received will be available to the public on the FTC 
website, to the extent practicable, at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of discretion, the Commission makes 
every effort to remove home contact information for individuals from 
the public comments it receives before placing those comments on the 
FTC

[[Page 70348]]

website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds or James Chen, Attorneys, Division of Financial 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Ave., N.W., Washington, D.C. 20580, (202) 326-3230 or 
(202) 326-2659.

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).
    Under the PRA, 44 U.S.C. 3501-3521, federal agencies must obtain 
approval from OMB for each collection of information they conduct or 
sponsor. ``Collection of information'' means agency requests or 
requirements that members of the public submit reports, keep records, 
or provide information to a third party. 44 U.S.C. 3502(3), 5 CFR 
1320.3(c). As required by the PRA, the FTC is providing this 
opportunity for public comment before requesting that OMB extend the 
existing paperwork clearance for the regulations noted herein. 44 
U.S.C. 3506(c)(2)(A).
    The FTC invites comments on: (1) whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
proposed collection of information, including the validity of the 
methodology and assumptions used; (3) ways to enhance the quality, 
utility, and clarity of the information to be collected; and (4) ways 
to minimize the burden of the collection of information on those who 
are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology, e.g., permitting electronic 
submission of responses.
    Each of these four rules impose certain recordkeeping and 
disclosure requirements associated with providing credit or with other 
financial transactions. As detailed below, the FTC staff has calculated 
the PRA burden for each rule based on the compliance costs of entities 
over which the FTC has jurisdiction. All of these rules require covered 
entities to keep certain records. FTC staff believes that these 
entities would likely retain these records in the normal course of 
business even absent the recordkeeping requirements in the rules.\2\ 
Covered entities, however, may incur some burden associated with 
ensuring that they do not prematurely dispose of relevant records 
(i.e., during the period of time when they are required to retain 
records by the applicable rule).
---------------------------------------------------------------------------

    \2\ PRA ``burden'' does not include effort expended in the 
ordinary course of business, regardless of any regulatory 
requirement. 5 CFR 1320.3(b)(2).
---------------------------------------------------------------------------

    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 changes to 
regulatory requirements, making necessary revisions to compliance 
systems and procedures, 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 computer-based 
systems and procedures for providing the required disclosures (and/or 
the extent to which entities utilize electronic transactions, 
communications, and/or electronic recordkeeping), and the efficacy of 
those systems and procedures, some entities may have little burden, 
while others may have a higher burden.\3\
---------------------------------------------------------------------------

    \3\ 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; as such, they may have minimal 
additional burden. Other entities may have incorporated fewer of 
these approaches into their systems and 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 credit and lease advertisers, 
creditors, financial institutions, service providers, certain 
government agencies and others involved in delivering electronic fund 
transfers (``EFTs'') of government benefits, and lessors.\4\ The burden 
estimates represent FTC staff's best assessment, based on its knowledge 
and expertise relating to the financial services industry. To derive 
these estimates, FTC 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 EFTs 
used; (4) types and occurrences of adverse actions; (5) types of 
appraisal reports utilized; and (6) computer systems and electronic 
features of compliance operations.
---------------------------------------------------------------------------

    \4\ The Commission generally does not have jurisdiction over 
banks, thrifts, and federal credit unions under the applicable 
regulations.
---------------------------------------------------------------------------

    The required disclosures do not impose PRA burden on some covered 
entities because the entities make those disclosures in the ordinary 
course of business. In addition, as noted above, some entities use 
computer-based and/or electronic means of providing the required 
disclosures, while others rely on methods requiring more manual effort.
    The cost estimates detailed below relate solely to labor costs and 
include the time necessary to train employees how to comply with the 
regulations. The applicable PRA requirements impose minimal capital or 
other non-labor costs, as affected entities generally 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.

[[Page 70349]]

1. Regulation B

    The ECOA prohibits discrimination in the extension of credit. The 
Board of Governors of the Federal Reserve System (``FRB'') promulgated 
Regulation B, 12 CFR 202, to implement the ECOA. Regulation B 
establishes disclosure requirements to assist customers in 
understanding their rights under the ECOA and recordkeeping 
requirements to assist in detecting unlawful discrimination and other 
violations. The FTC enforces the ECOA as to all creditors except those 
(such as federally chartered or insured depository institutions) that 
are subject to the regulatory authority of another federal agency.

    Estimated annual hours burden: 3,129,437 hours, rounded to the 
nearest thousand (1,153,500 recordkeeping hours + 1,975,937 disclosure 
hours)
    Recordkeeping: FTC staff estimates that Regulation B's general 
recordkeeping requirements affect 1,000,000 credit firms within 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 mortgage creditors monitor information about race/
national origin, sex, age, and marital status imposes a maximum burden 
of one minute each\5\ for approximately 9 million credit 
applications,\6\ for a total of 150,000 hours. Staff also estimates 
that keeping records of self-testing pursuant to the regulation would 
affect 2,500 firms, with an average annual burden of one hour per firm, 
for a total of 2,500 hours, and that recordkeeping of any corrective 
action for self-testing would affect 250 firms in a given year, with an 
average annual burden of four hours per firm, for a total of 1,000 
hours. The total estimated recordkeeping burden is 1,153,500 hours.
---------------------------------------------------------------------------

    \5\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \6\ The decrease in credit applications relative to prior FTC 
estimates is based on industry data regarding the approximate number 
of mortgage purchase and refinance originations.
---------------------------------------------------------------------------

    Disclosure: Regulation B requires that creditors (i.e., entities 
that regularly participate in a credit decision, including setting the 
terms of the credit) provide notice whenever they take adverse action. 
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). It 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 providing the 
information is optional, that the creditor will not take the 
information into account in any aspect of the credit transaction, and, 
if applicable, that the information will be noted by visual observation 
or surname if the applicant chooses not to provide it.\7\
---------------------------------------------------------------------------

    \7\ The disclosure may be provided orally or in writing. 
Regulation B provides a model form to assist creditors in providing 
the disclosure.
---------------------------------------------------------------------------

    Regulation B applies to retailers, mortgage lenders, mortgage 
brokers, finance companies, utilities (for some requirements), and 
others. Below is FTC staff's best estimate of burden applicable to the 
wide spectrum of these entities within the FTC's jurisdiction.

                                                         Regulation B: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Setup/Monitoring\1\                     Transaction-related\2\
                                                       ------------------------------------------------------------------------------------
                                                                         Average    Total Setup/                   Average        Total     Total Burden
                      Disclosures                                      Burden per    Monitoring     Number of    Burden per   Transactions     (hours)
                                                         Respondents   Respondent      Burden     Transactions   Transaction     Burden
                                                                         (hours)       (hours)                    (minutes)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit history reporting                                    250,000           .25        62,500   125,000,000           .25       520,833       583,333
Adverse action notices                                    1,000,000            .5       500,000   200,000,000           .25       833,333     1,333,333
Appraisal notices                                            20,000            .5        10,000     4,500,000           .25        18,750        28,750
Appraisal reports                                            20,000            .5        10,000     4,500,000           .25        18,750        28,750
Self-test disclosures                                         2,500            .5         1,250       125,000           .25           521         1,771
Total                                                   ............  ............  ............  ............  ............  ............    1,975,937
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ With respect to appraisal notices and appraisal reports, the above figures reflect a decrease in applicable mortgage entities. The figures assume
  that approximately half of those entities (.5 x 40,000, or 20,000 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 assume that half of applicable mortgage
  transactions (.5 x 9,000,000, or 4,500,000) would not otherwise provide the appraisal notices and reports and thus would be affected.

    Estimated annual cost burden: $83,456,633 rounded to the nearest 
thousand ($22,005,000 recordkeeping cost + $61,451,633 disclosure cost)
    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on the 
most currently available Bureau of Labor Statistics cost figures posted 
online.\8\
---------------------------------------------------------------------------

    \8\ http://www.bls.gov/ncs/ncswage2007.htm (National 
Compensation Survey: Occupational Earnings in the United States 
2007, US Department of Labor released August 2008, Bulletin 2704, 
Table 3 (``Full-time civilian workers,'' mean and median hourly 
wages).
---------------------------------------------------------------------------

    Recordkeeping: FTC staff estimates that the general recordkeeping 
responsibility of one hour per creditor would involve approximately 90 
percent clerical time and 10 percent skilled technical time. Keeping 
records of race/national origin, sex, age, and marital status requires 
an estimated one minute of skilled technical time. Keeping records of 
the self-test responsibility and of any corrective actions requires an 
estimated one hour and four hours, respectively, of skilled technical 
time. As shown in the table below, the total recordkeeping cost is 
$22,005,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that the burden hours consist of 10 percent managerial time 
and 90 percent skilled technical time. As

[[Page 70350]]

shown below, the total disclosure cost is $61,451,633.

                                                    Regulation B: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Managerial               Skilled Technical               Clerical
                                                       ------------------------------------------------------------------------------------  Total Cost
                     Required Task                      Time (hours)   Cost ($41/   Time (hours)   Cost ($30/   Time (hours)   Cost ($16/        ($)
                                                                          hr.)                        hr.)                        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General recordkeeping                                             0            $0       100,000    $3,000,000       900,000   $14,400,000   $17,400,000
Other recordkeeping                                               0            $0       150,000    $4,500,000             0            $0    $4,500,000
Recordkeeping of test                                             0            $0         2,500       $75,000             0            $0       $75,000
Recordkeeping of corrective action                                0            $0         1,000       $30,000             0            $0       $30,000
                                                        ............  ............  ............  ............  ............  ............  ............
Total Recordkeeping                                     ............  ............  ............  ............  ............  ............  $22,005,000
                                                        ............  ............  ............  ............  ............  ............  ............
Credit history reporting                                     58,333    $2,391,653       525,000   $15,750,000             0            $0   $18,141,653
Adverse action notices                                      133,333    $5,466,653     1,200,000   $36,000,000             0            $0   $41,466,653
Appraisal notices                                             2,875      $117,875        25,875      $776,250             0            $0      $894,125
Appraisal reports                                             2,875      $117,875        25,875      $776,250             0            $0      $894,125
Self-test disclosure                                            177        $7,257         1,594       $47,820             0            $0       $55,077
                                                        ............  ............  ............  ............  ............  ............  ............
Total Disclosures                                       ............  ............  ............  ............  ............  ............  $61,451,633
Total Recordkeeping and Disclosures                     ............  ............  ............  ............  ............  ............  $83,456,633
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Regulation E

    The EFTA requires accurate disclosure of the costs, terms, and 
rights relating to EFT services provided to consumers. The FRB 
promulgated Regulation E, 12 CFR 205, to implement the EFTA. Regulation 
E establishes disclosure requirements to assist consumers and 
establishes recordkeeping requirements to assist in enforcing the EFTA. 
The FTC enforces the EFTA as to all entities providing EFT services, 
except those (such as federally chartered or insured depository 
institutions) that are subject to the regulatory authority of another 
federal agency.

    Estimated annual hours burden: 3,731,342 hours (600,000 
recordkeeping hours + approximately 3,131,342 disclosure hours)
    Recordkeeping: FTC staff estimates that Regulation E's 
recordkeeping requirements affect 600,000 firms within the Commission's 
jurisdiction that offer EFT services to consumers, at an average annual 
burden of one hour per firm, for a total of 600,000 hours.
    Disclosure: Regulation E applies to financial institutions 
(including certain retailers and various electronic commerce entities, 
such as other payees), service providers, various federal and state 
agencies offering EFTs, and others. Below is FTC staff's best estimate 
of burden applicable to this highly broad spectrum of covered entities.

                                                         Regulation E: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Setup/Monitoring                         Transaction-related
                                                       ------------------------------------------------------------------------------------
                                                                         Average    Total Setup/                   Average        Total     Total Burden
                    Disclosures\1\                                     Burden per    Monitoring     Number of    Burden per   Transactions     (hours)
                                                         Respondents   Respondent      Burden     Transactions   Transaction     Burden
                                                                         (hours)       (hours)                    (minutes)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
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   1,200,000,00          .02       400,000       450,000
                                                                                                            0
Error resolution                                            100,000            .5        50,000     1,000,000             5        83,333       133,333
Transaction receipts\2\                                     100,000            .5        50,000   5,000,000,00          .02     1,666,667     1,716,667
                                                                                                            0
Preauthorized transfers                                     500,000            .5       250,000     1,000,000           .25         4,167       254,167
Service provider notices                                    100,000           .25        25,000     1,000,000           .25         4,167        29,167
Govt. benefit notices                                        10,000            .5         5,000   100,000,000           .25       416,667       421,667
ATM\3\                                                          500           .25           125       250,000           .25         1,041         1,166
Electronic check conversion\4\                              100,000            .5        50,000     3,500,000           .02         1,167        51,167
Payroll cards\5\                                                100            .5            50         2,500             3           125           175
Total                                                   ............  ............  ............  ............  ............  ............    3,131,342
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This reflects an increase in entities offering EFT services to consumers.
\2\ Regulation E now exempts EFTs of $15 or less from receipt requirements, which could decrease the burden of providing transaction receipts. However,
  use of the exemption could involve reprogramming costs. Due to the relatively recent change, the burden associated with transaction receipts has not
  been changed.
\3\ Regulation E now permits ATM operators that do not charge fees for services in all circumstances to disclose on signs that a fee ``may'' (rather
  than ``will'') be charged. However, making this change would require replacing existing signage, which could increase disclosure burden. Due to the
  relatively recent change and its voluntary nature, the burden associated with ATM notice has not been revised.
\4\ Regulation E now includes requirements for electronic check conversion.
\5\ Regulation E now includes requirements for payroll cards.


[[Page 70351]]

    Estimated annual cost burden: $107,825,124, rounded to the nearest 
thousand ($10,440,000 recordkeeping cost + $97,385,124 disclosure cost)
    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\9\
---------------------------------------------------------------------------

    \9\ See note 8.
---------------------------------------------------------------------------

    Recordkeeping: For the 600,000 recordkeeping hours, FTC 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 $10,440,000.
    Disclosure: For each notice or information item listed, FTC 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 $97,385,124.

                                                    Regulation E: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Managerial               Skilled Technical               Clerical
                                                       ------------------------------------------------------------------------------------  Total Cost
                     Required Task                      Time (hours)   Cost ($41/   Time (hours)   Cost ($30/   Time (hours)   Cost ($16/        ($)
                                                                          hr.)                        hr.)                        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping                                                     0            $0        60,000    $1,800,000       540,000    $8,640,000   $10,440,000
                                                        ............  ............  ............  ............  ............  ............  ............
Disclosures:                                            ............  ............  ............  ............  ............  ............  ............
Initial terms                                                 5,033      $206,353        45,300    $1,359,000             0            $0    $1,565,353
Change in terms                                               2,350       $96,350        21,150      $634,500             0            $0      $730,850
Periodic statements                                          45,000    $1,845,000       405,000   $12,150,000             0            $0   $13,995,000
Error resolution                                             13,333      $546,653       120,000    $3,600,000             0            $0    $4,146,653
Transaction receipts                                        171,667    $7,038,347     1,545,000   $46,350,000             0            $0   $53,388,347
Preauthorized transfers                                      25,417    $1,042,097       228,750    $6,826,500             0            $0    $7,904,597
Service provider notices                                      2,917      $119,597        26,250      $787,500             0            $0      $907,097
Govt. benefit notices                                        42,167    $1,728,874       379,500   $11,385,000             0            $0   $13,113,874
ATM notices                                                     116        $4,756         1,050       $31,500             0            $0       $36,256
Electronic check conversion                                   5,117      $209,797        46,050    $1,381,500             0            $0    $1,591,297
Payroll cards                                                    50        $2,050           125        $3,750             0            $0        $5,800
                                                        ............  ............  ............  ............  ............  ............  ............
Total Disclosures                                       ............  ............  ............  ............  ............  ............  $97,385,124
Total Recordkeeping and Disclosures                     ............  ............  ............  ............  ............  ............  $107,825,124
--------------------------------------------------------------------------------------------------------------------------------------------------------

3. Regulation M

    The CLA requires accurate disclosure of the costs and terms of 
leases to consumers. The FRB promulgated Regulation M, 12 CFR 213, to 
implement the CLA. Regulation M 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: 225,000 hours, rounded to the 
nearest thousand (120,000 recordkeeping hours + 104,875 disclosure 
hours)
    Recordkeeping: FTC staff estimates that Regulation M's 
recordkeeping requirements affect approximately 120,000 firms within 
the Commission's jurisdiction that lease products to consumers, at an 
average annual burden of one hour per firm, for a total of 120,000 
hours.
    Disclosure: Regulation M applies to 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, diverse types of lease advertisers, and others. Below is FTC 
staff's best estimate of burden applicable to the wide spectrum of 
these entities within the FTC's jurisdiction.

                                                         Regulation M: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Setup/Monitoring                         Transaction-related
                                                       ------------------------------------------------------------------------------------
                                                                         Average    Total Setup/                   Average        Total     Total Burden
                      Disclosures                                      Burden per    Monitoring     Number of    Burden per   Transactions     (hours)
                                                         Respondents   Respondent      Burden     Transactions   Transaction     Burden
                                                                         (hours)       (hours)                    (minutes)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Auto Leases\1\                                               45,000           .75        33,750     2,000,000           .50        16,667        50,417
Other Leases\2\                                              75,000           .50        37,500       750,000           .25         3,125        40,625
Advertising                                                  20,000           .50        10,500       800,000           .25         3,333        13,833
Total                                                   ............  ............  ............  ............  ............  ............      104,875
--------------------------------------------------------------------------------------------------------------------------------------------------------
\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
  213.2(e)(1). This reflects a decrease in auto leasing entities and transactions, relative to prior FTC estimates.
\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 consumers leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  213.2(e)(1). This reflects a decrease in consumer leasing entities and transactions, relative to prior FTC estimates.


[[Page 70352]]

    Estimated annual cost burden: $5,349,618, rounded to the nearest 
thousand ($2,088,000 recordkeeping cost + $3,261,618 disclosure cost)
    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\10\
---------------------------------------------------------------------------

    \10\ See note 8.
---------------------------------------------------------------------------

    Recordkeeping: For the 120,000 recordkeeping hours, FTC staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown in the table below, 
the total recordkeeping cost is $2,088,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown in the table 
below, the total disclosure cost is $3,261,618.

                                                    Regulation M: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Managerial               Skilled Technical               Clerical
                                                       ------------------------------------------------------------------------------------  Total Cost
                     Required Task                      Time (hours)   Cost ($41/   Time (hours)   Cost ($30/   Time (hours)   Cost ($16/        ($)
                                                                          hr.)                        hr.)                        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping                                                     0            $0        12,000      $360,000       108,000    $1,728,000    $2,088,000
                                                        ............  ............  ............  ............  ............  ............  ............
Disclosures                                             ............  ............  ............  ............  ............  ............  ............
Auto Leases                                                   5,042      $206,722        45,375    $1,361,250             0            $0    $1,567,972
Other Leases                                                  4,063      $166,583        36,562    $1,096,860             0            $0    $1,263,443
Advertising                                                   1,383       $56,703        12,450      $373,500             0            $0      $430,203
                                                        ............  ............  ............  ............  ............  ............  ............
Total Disclosures                                       ............  ............  ............  ............  ............  ............   $3,261,618
Total Recordkeeping and Disclosures                     ............  ............  ............  ............  ............  ............   $5,349,618
--------------------------------------------------------------------------------------------------------------------------------------------------------

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 disclosure of the costs and terms of credit to 
consumers. The FRB promulgated Regulation Z, 12 CFR 226, to implement 
the TILA. Regulation Z establishes disclosure requirements to assist 
consumers and recordkeeping requirements to assist 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: 12,415,413 hours, rounded to the 
nearest thousand (1,000,000 recordkeeping hours + 11,415,413 disclosure 
hours)
    Recordkeeping: FTC staff estimates that Regulation Z's 
recordkeeping requirements affect approximately 1,000,000 firms within 
the Commission's jurisdiction that offer credit, 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. The Regulation applies to various types of 
entities, including mortgage companies; finance companies; auto 
dealerships; student loan companies; merchants who extend credit for 
goods or services, credit advertisers; and others. Below is FTC staff's 
best estimate of burden applicable to the wide spectrum of these 
entities within the FTC's jurisdiction.

                                                         Regulation Z: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Setup/Monitoring                         Transaction-related
                                                       ------------------------------------------------------------------------------------
                                                                         Average    Total Setup/                   Average        Total     Total Burden
                    Disclosures\1\                                     Burden per    Monitoring     Number of    Burden per   Transactions     (hours)
                                                         Respondents   Respondent      Burden     Transactions   Transaction     Burden
                                                                         (hours)       (hours)                    (minutes)      (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:                                        ............  ............  ............  ............  ............  ............  ............
Initial terms                                                90,000            .5        45,000    40,000,000           .25       166,666       211,666
Rescission notices                                            7,500            .5         3,750       400,000           .25    1,6665,416
Change in terms                                              20,000            .5        10,000   125,000,000          .125       260,416       270,416
Periodic statements                                          90,000            .5        45,000   3,500,000,00        .0625     3,645,833     3,690,833
                                                                                                            0
Error resolution                                             90,000            .5        45,000     8,000,000             5       666,666       711,666
Credit and charge card accounts                              50,000            .5        25,000    25,000,000           .25       104,166       129,166
Home equity lines of credit                                   7,500            .5         3,750     3,500,000           .25        14,583        18,333
Advertising                                                 200,000            .5       100,000       600,000            .5         5,000       105,000
                                                        ............  ............  ............  ............  ............  ............  ............
Closed-end credit:                                      ............  ............  ............  ............  ............  ............  ............
Credit disclosures                                          700,000            .5       350,000   200,000,000           1.5     5,000,000     5,350,000
Rescission notices                                           75,000            .5        37,500    30,000,000             1       500,000       537,500
Variable rate mortgages                                      70,000            .5        35,000     2,000,000           1.5        50,000        85,000
High rate/high-fee mortgages                                 40,000            .5        20,000       500,000           1.5        12,500        32,500

[[Page 70353]]

 
Reverse mortgages                                            50,000            .5        25,000       175,000        12,917        27,917
Advertising\2\                                              450,000            .5       225,000       900,000       115,000       240,000
                                                        ............  ............  ............  ............  ............  ............  ............
Total open-end credit                                   ............  ............  ............  ............  ............  ............    5,142,496
Total closed-end credit                                 ............  ............  ............  ............  ............  ............    6,272,917
Total credit                                            ............  ............  ............  ............  ............  ............   11,415,413
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Generally, open-end and closed-end entities and transactions have decreased, but reverse mortgages have increased, relative to prior FTC estimates.
\2\ Advertising time for setup for open-end and closed-end mortgage transactions is estimated to increase based on new rules effective October 1, 2009,
  but the number of transactions have decreased, relative to prior FTC estimates.

    Estimated annual cost burden: $372,419,363, rounded to the nearest 
thousand ($17,400,000 recordkeeping cost + $355,019,363 disclosure 
cost)
    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\2\
---------------------------------------------------------------------------

    \2\ See note 8.
---------------------------------------------------------------------------

    Recordkeeping: For the 1,000,000 recordkeeping hours, FTC staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown in the table below, 
the total recordkeeping cost is $17,400,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown in the table 
below, the total disclosure cost is $355,019,363.

                                                    Regulation Z: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Managerial               Skilled Technical               Clerical
                                                       ------------------------------------------------------------------------------------  Total Cost
                     Required Task                      Time (hours)   Cost ($41/   Time (hours)   Cost ($30/   Time (hours)   Cost ($16/        ($)
                                                                          hr.)                        hr.)                        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping                                                     0            $0       100,000    $3,000,000       900,000   $14,400,000   $17,400,000
                                                        ............  ............  ............  ............  ............  ............  ............
Open-end credit Disclosures:                            ............  ............  ............  ............  ............  ............  ............
Initial terms                                                21,167      $867,847       190,499    $5,714,970             0            $0    $6,582,817
Rescission notices                                              542       $22,222         4,874      $146,220             0            $0      $168,442
Change in terms                                              27,042    $1,108,722       243,374    $7,301,220             0            $0    $8,409,942
Periodic statements                                         369,083   $15,132,403     3,321,750   $99,652,500             0            $0   $114,784,903
Error resolution                                             71,167    $2,917,847       640,499   $19,214,970             0            $0   $22,132,817
Credit and charge card accounts                              12,917      $529,597       116,249    $3,487,470             0            $0    $4,017,067
Home equity lines of credit                                   1,833       $75,153        16,500      $495,000             0            $0      $570,153
Advertising                                                  10,500      $430,500        94,500    $2,835,000             0            $0    $3,265,500
Total open-end credit                                   ............  ............  ............  ............  ............  ............  $159,931,641
                                                        ............  ............  ............  ............  ............  ............  ............
Closed-end credit Disclosures:                          ............  ............  ............  ............  ............  ............  ............
Credit disclosures                                          535,000   $21,935,000     4,815,000   $144,450,000            0            $0   $166,385,000
Rescission notices                                           53,750    $2,203,750       483,750   $14,512,500             0            $0   $16,716,250
Variable rate mortgages                                       8,500      $348,500        76,500    $2,295,000             0            $0    $2,643,500
High-rate/high-fee mortgages                                  3,250      $133,250        29,250      $877,500             0            $0    $1,010,750
Reverse mortgages                                             2,792      $114,472        25,125      $753,750             0            $0      $868,222
Advertising                                                  24,000      $984,000       216,000    $6,480,000             0            $0    $7,464,000
Total closed-end credit                                 ............  ............  ............  ............  ............  ............  $195,087,722
                                                        ............  ............  ............  ............  ............  ............  ............
Total Disclosures                                       ............  ............  ............  ............  ............  ............  $355,019,363
Total Recordkeeping and Disclosures                     ............  ............  ............  ............  ............  ............  $372,419,363
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page 70354]]

William Blumenthal,
General Counsel.
[FR Doc. E8-27534 Filed 11-19-08: 8:45 am]
BILLING CODE 6750-01-S