[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Notices]
[Pages 6114-6122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2665]


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FEDERAL TRADE COMMISSION


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

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice.

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SUMMARY: The information collection requirements described below will 
be submitted to the Office of Management and Budget (``OMB'') for 
review, as required by the Paperwork Reduction Act (``PRA''). The FTC 
is seeking public comments on its proposal to extend through April 30, 
2015, the current PRA clearances for information collection 
requirements contained in four consumer financial regulations enforced 
by the Commission. Those clearances expire on April 30, 2012.

DATES: Comments must be filed by April 9, 2012.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Regs BEMZ, PRA 
Comments, P084812'' on your comment and file your comment online at 
https://ftcpublic.commentworks.com/ftc/RegsBEMZpra by following the 
instructions on the Web-based form. If you prefer to file your comment 
on paper, mail or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Room H-113 (Annex 
J), 600 Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds or Soyong Cho, Attorneys, Division of Financial 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Ave. NW., Washington, DC 20580, (202) 326-3224.

SUPPLEMENTARY INFORMATION: The four regulations covered by this notice 
are:
    (1) Regulations promulgated under The Equal Credit Opportunity Act, 
15 U.S.C. 1691 et seq. (``ECOA'') (``Regulation B'') (OMB Control 
Number: 3084-0087);
    (2) Regulations promulgated under The Electronic Fund Transfer Act, 
15 U.S.C. 1693 et seq. (``EFTA'') (``Regulation E'') (OMB Control 
Number: 3084-0085);
    (3) Regulations promulgated under The Consumer Leasing Act, 15 
U.S.C. 1667 et seq. (``CLA'') (``Regulation M'') (OMB Control Number: 
3084-0086); and
    (4) Regulations promulgated under The Truth-In-Lending Act, 15 
U.S.C. 1601 et seq. (``TILA'') (``Regulation Z'') (OMB Control Number: 
3084-0088).
    The FTC enforces these statutes as to all businesses engaged in 
conduct these laws cover unless these businesses (such as federally 
chartered or insured depository institutions) are subject to the 
regulatory authority of another federal agency.
    Under the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(``Dodd-Frank Act''), Public Law 111-203,124 Stat. 1376 (2010), almost 
all rulemaking authority for the ECOA, EFTA, CLA, and TILA transferred 
from the Board of Governors of the Federal Reserve System (Board) to 
the Consumer Financial Protection Bureau (CFPB) on July 21, 2011 
(``transfer date''). To implement this transferred authority, the CFPB 
has published for public comment interim final rules for new 
regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005 
(Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR 1026 
(Regulation Z) for those entities under its rulemaking jurisdiction.\1\ 
Although the Dodd-Frank Act transferred most rulemaking authority under 
ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking 
authority for certain motor vehicle dealers \2\ under all of these 
statutes and also for certain interchange-related requirements under 
EFTA.\3\
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    \1\ 12 CFR part 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011); 12 
CFR 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); 12 CFR part 1013 
(Reg. M) (76 FR 78500, Dec. 19, 2011); 12 CFR part 1026 (Reg. Z) (76 
FR 79768, Dec. 22, 2011).
    \2\ Generally, these are dealers ``predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' See Dodd-Frank Act, Sec.  1029(a)-(c).
    \3\ See Dodd-Frank Act, Sec.  1075 (these requirements are 
implemented through Board Regulation II, 12 CFR part 235, rather 
than EFTA's implementing Regulation E).
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    As a result of the Dodd-Frank Act, the FTC and the CFPB now share 
the authority to enforce Regulations B, E, M, and Z for entities for 
which the FTC had enforcement authority before the Act, except for 
certain motor vehicle dealers. Because of this shared enforcement 
jurisdiction, the two agencies have divided the FTC's previously-
cleared PRA burden between them,\4\ except that the FTC retained all of 
the part of that burden associated with certain motor vehicle dealers 
(for brevity, referred to in the burden summaries below as a ``carve-
out'').\5\ The division of PRA

[[Page 6115]]

burden hours not attributable to certain motor vehicle dealers is 
reflected in the CFPB's recent PRA clearance requests to OMB,\6\ as 
well as in the FTC's burden estimates below.
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    \4\ The CFPB also factored into its burden estimates respondents 
over which it has jurisdiction but the FTC does not.
    \5\ These are dealers specified by the Dodd-Frank Act under 
Sec.  1029(a), but as limited by subsection (b). Subsection (b) does 
not preclude CFPB regulatory oversight regarding, among others, 
businesses that extend retail credit or retail leases for motor 
vehicles in which the credit or lease offered is provided directly 
from those businesses, rather than unaffiliated third parties, to 
consumers. It is not practicable, however, for PRA purposes, to 
estimate the portion of dealers that engage in one form of financing 
versus another (and that would or would not be subject to CFPB 
oversight). Thus, FTC staff's ``carve-out'' for this PRA burden 
analysis reflects a general estimated volume of motor vehicle 
dealers. This attribution does not change actual enforcement 
authority.
    \6\ OMB Control Numbers 3170-0013 (Regulation B), 3170-0014 
(Regulation E), 3170-0008 (Regulation M), and 3170-0015 (Regulation 
Z)
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    As a result of the Dodd-Frank Act, the FTC generally has sole 
authority to enforce Regulations B, E, M, and Z regarding motor vehicle 
dealers predominantly engaged in the sale and servicing of motor 
vehicles, the leasing and servicing of motor vehicles, or both.\7\ 
Because the FTC has exclusive jurisdiction to enforce these rules for 
such motor vehicle dealers, it is including the entire PRA burden for 
them in the burden estimates below.
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    \7\ See Dodd-Frank Act, Sec.  1029(a)-(c).
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    The regulations impose certain recordkeeping and disclosure 
requirements associated with providing credit or with other financial 
transactions. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must 
get OMB approval for each collection of information they conduct or 
sponsor. ``Collection of information'' includes agency requests or 
requirements to keep records or provide information to a third party. 
See 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    All four of these regulations require covered entities to keep 
certain records, but FTC staff believes these records are kept in the 
normal course of business even absent the particular recordkeeping 
requirements.\8\ Covered entities, however, may incur some burden 
associated with ensuring that they do not prematurely dispose of 
relevant records (i.e., during the time span they must retain records 
under the applicable regulation).
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    \8\ PRA ``burden'' does not include effort expended in the 
ordinary course of business, regardless of any regulatory 
requirement. 5 CFR 1320.3(b)(2).
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    The regulations also require covered entities to make disclosures 
to third-parties. Related compliance involves set-up/monitoring and 
transaction-specific costs. ``Set-up'' burden, incurred only by covered 
new entrants, includes their identifying the applicable required 
disclosures, determining how best to comply, and designing and 
developing compliance systems and procedures. ``Monitoring'' burden, 
incurred by all covered entities, includes their time and costs to 
review changes to regulatory requirements, make necessary revisions to 
compliance systems and procedures, and to monitor the ongoing operation 
of systems and procedures to ensure continued compliance. 
``Transaction-related'' burden refers to the time and cost associated 
with providing the various required disclosures in individual 
transactions. While this burden varies with the number of transactions, 
the figures shown for transaction-related burden in the tables that 
follow are estimated averages.
    The required disclosures do not impose PRA burden on some covered 
entities because they make those disclosures in their normal course of 
activities. For other covered entities that do not, their compliance 
burden will vary widely depending on the extent to which they have 
developed effective computer-based or electronic systems and procedures 
to communicate and document required disclosures.\9\
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    \9\ For example, large companies may use computer-based and/or 
electronic means to provide required disclosures, including issuing 
some disclosures en masse, e.g., notices of changes in terms. 
Smaller companies may have less automated compliance systems but may 
nonetheless rely on electronic mechanisms for disclosures and 
recordkeeping. Regardless of size, some entities may utilize 
compliance systems that are fully integrated into their general 
business operational system; if so, they may have minimal additional 
burden. Other entities may have incorporated fewer of these 
approaches into their systems and thus may have a higher burden.
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    Calculating the burden associated with the four regulations' 
disclosure requirements is very difficult because of the highly diverse 
group of affected entities. The ``respondents'' included in the 
following burden calculations consist of, among others, credit and 
lease advertisers, creditors, owners (such as purchasers and assignees) 
of credit obligations, financial institutions, service providers, 
certain government agencies and others involved in delivering 
electronic fund transfers (``EFTs'') of government benefits, and 
lessors.\10\ The burden estimates represent FTC staff's best 
assessment, based on its knowledge and expertise relating to the 
financial services industry. Staff considered the wide variations in 
covered entities' (1) size and location; (2) credit or lease products 
offered, extended, or advertised, and their particular terms; (3) EFT 
types used; (4) types and frequency of adverse actions taken; (5) types 
of appraisal reports utilized; and (6) computer systems and electronic 
features of compliance operations.
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    \10\ The Commission generally does not have jurisdiction over 
banks, thrifts, and federal credit unions under the applicable 
regulations.
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    The cost estimates that follow relate solely to labor costs, and 
they include the time necessary to train employees how to comply with 
the regulations. Staff calculated labor costs by multiplying 
appropriate hourly wage rates by the burden hours described above. The 
hourly rates used were $49 for managerial oversight, $30 for skilled 
technical services, and $16 for clerical work. These figures are 
averages drawn from Bureau of Labor Statistics data.\11\ Further, the 
FTC cost estimates assume the following labor category apportionments, 
except where otherwise indicated below: recordkeeping--10% skilled 
technical, 90% clerical; disclosure--10% managerial, 90% skilled 
technical.
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    \11\ These inputs are based broadly on mean hourly data found 
within the National Compensation Survey: Occupational Earnings in 
the United States, 2010, Bulletin 2753 (May 2011), Table 3 (http://www.bls.gov/ncs/ocs/sp/nctb1477.pdf).
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    The applicable PRA requirements impose minimal capital or other 
non-labor costs. Affected entities generally already have the necessary 
equipment for other business purposes. Similarly, FTC staff estimates 
that compliance with these rules entails minimal printing and copying 
costs beyond that associated with documenting financial transactions in 
the ordinary course of business.

1. Regulation B

    The ECOA prohibits discrimination in the extension of credit. 
Regulation B implements the ECOA, establishing disclosure requirements 
to assist customers in understanding their rights under the ECOA and 
recordkeeping requirements to assist agencies in enforcement. 
Regulation B applies to retailers, mortgage lenders, mortgage brokers, 
finance companies, and others.

Recordkeeping

    FTC staff estimates that Regulation B's general recordkeeping 
requirements affect 530,479 credit firms subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per firm for a 
total of 663,099 hours.\12\ Staff also

[[Page 6116]]

estimates that the requirement that mortgage creditors monitor 
information about race/national origin, sex, age, and marital status 
imposes a maximum burden of one minute each (of skilled technical time) 
for approximately 2.25 million credit applications (based on industry 
data regarding the approximate number of mortgage purchase and 
refinance originations), for a total of 37,500 hours.\13\ Staff also 
estimates that recordkeeping of self-testing subject to the regulation 
would affect 1,375 firms, with an average annual burden of one hour (of 
skilled technical time) per firm, for a total of 1,375 hours, and that 
recordkeeping of any corrective action as a result of self-testing 
would affect 10% of them, i.e., 138 firms, with an average annual 
burden of four hours (of skilled technical time) per firm, for a total 
of 552 hours.\14\ Keeping records of race/national origin, sex, age, 
and marital status requires an estimated one minute of skilled 
technical time. Recordkeeping for the self-test responsibility and of 
any corrective actions requires an estimated one hour and four hours, 
respectively, of skilled technical time.
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    \12\ Section 1071 of the Dodd-Frank Act amends the ECOA to 
require financial institutions to collect and report information 
concerning credit applications by women- or minority-owned 
businesses and small businesses, effective on the July 21, 2011 
transfer date. Both the CFPB and the Board have exempted affected 
entities from complying with this requirement until a date set by 
the prospective final rules these agencies issue to implement the 
Dodd-Frank Act's requirements. The Commission will address PRA 
burden for its enforcement of these requirements after the CFPB and 
the Board have issued the associated final rules.
    \13\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \14\ In contrast to banks, for example, entities under FTC 
jurisdiction are not subject to audits for compliance with 
Regulation B; rather they may be subject to FTC investigations and 
enforcement actions. This may impact the level of self-testing (as 
specifically defined by Regulation B) in a given year, and staff has 
sought to address such factors in its burden estimates.
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Disclosure

    Regulation B requires that creditors (i.e., entities that regularly 
participate in the decision whether to extend credit under Regulation 
B) provide notices whenever they take adverse action, such as denial of 
a credit application. It requires entities that extend various types of 
mortgage credit to provide a copy of the appraisal report to applicants 
or to notify them of their right to a copy of the report (and 
thereafter provide a copy of the report, upon the applicant's request). 
Finally, Regulation B also requires that for accounts which spouses may 
use or for which they are contractually liable, creditors who report 
credit history must do so in a manner reflecting both spouses' 
participation. Further, it requires creditors that collect applicant 
characteristics for purposes of conducting a self-test to disclose to 
those applicants that: (1) Providing the information is optional; (2) 
the creditor will not take the information into account in any aspect 
of the credit transactions; and (3) if applicable, the information will 
be noted by visual observation or surname if the applicant chooses not 
to provide it.\15\
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    \15\ The disclosure may be provided orally or in writing. The 
model form provided by Regulation B assists creditors in providing 
the written disclosure.
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Burden Totals

Recordkeeping: 702,526 hours (625,977 + 76,549 carve-out for motor 
vehicles); $12,720,734 ($11,384,370 + $1,336,364 carve-out for motor 
vehicles), associated labor costs
Disclosures: 1,164,458 hours (1,032,206 + 132,252 carve-out for motor 
vehicles); $37,146,184 ($32,927,330 + $4,218,854 carve-out for motor 
vehicles), associated labor costs

                                                         Regulation B--Disclosures--Burden Hours
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                                                      Setup/monitoring \1\                                   Transaction-related \2\
                                        ----------------------------------------------------------------------------------------------------------------
                                                                                                          Average burden
              Disclosures                                Average burden   Total setup/      Number of           per            Total       Total burden
                                           Respondents   per respondent    monitoring      transactions     transaction     transaction       (hours)
                                                             (hours)     burden (hours)                      (minutes)    burden (hours)
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Credit history reporting...............         133,000             .25          33,250       66,309,750             .25         276,291         309,541
Adverse action notices.................         530,000             .75         397,500      106,096,000             .25         442,067         839,567
Appraisal notices......................           5,000              .5           2,500        1,125,000             .25           4,688           7,188
Appraisal reports......................           5,000              .5           2,500        1,125,000             .25           4,688           7,188
Self-test disclosures..................           1,375              .5             688           68,750             .25             286             974
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    Total..............................  ..............  ..............  ..............  ...............  ..............  ..............       1,164,458
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\1\ The estimates shown reflect a decrease in applicable mortgage entities regarding appraisal notices and appraisal reports. The figures assume that
  approximately half of mortgage entities (.5 x 10,000, or 5,000 businesses) would not otherwise provide this information and thus would be affected.
  The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
\2\ The above figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. They also assume that half of applicable mortgage
  transactions (.5 x 2,250,000, or 1,125,000) would not otherwise provide the appraisal notices and reports and thus would be affected.


                                                    Regulation B--Recordkeeping and Disclosures--Cost
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                                                   Managerial                   Skilled technical                    Clerical
             Required task              ------------------------------------------------------------------------------------------------- Total cost ($)
                                          Time (hours)   Cost ($49/hr.)   Time (hours)    Cost ($30/hr.)   Time (hours)   Cost ($16/hr.)
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General recordkeeping..................               0              $0          66,310       $1,989,300         596,789      $9,548,624     $11,537,924
Other recordkeeping....................               0               0          37,500        1,125,000               0               0       1,125,000
Recordkeeping of test..................               0               0           1,375           41,250               0               0          41,250
Recordkeeping of corrective action.....               0               0             552           16,560               0               0          16,650
                                        ----------------------------------------------------------------------------------------------------------------
        Total Recordkeeping............  ..............  ..............  ..............  ...............  ..............  ..............      12,720,734
Disclosures:
    Credit history reporting...........          30,954       1,516,746         278,587        8,357,610               0               0       9,874,356

[[Page 6117]]

 
    Adverse action notices.............          83,957       4,113,893         755,610       22,668,300               0               0      26,782,193
    Appraisal notices..................             719          35,231           6,469          194,070               0               0         229,301
    Appraisal reports..................             719          35,231           6,469          194,070               0               0         229,301
    Self-test disclosure...............              97           4,753             877           26,310               0               0          31,063
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        Total Disclosures..............  ..............  ..............  ..............  ...............  ..............  ..............      37,146,214
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        Total Recordkeeping and          ..............  ..............  ..............  ...............  ..............  ..............      49,866,948
         Disclosures...................
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2. Regulation E

    The EFTA requires that covered entities provide consumers with 
accurate disclosure of the costs, terms, and rights relating to EFT and 
certain other services. Regulation E implements the EFTA, establishing 
disclosure and other requirements to aid consumers and recordkeeping 
requirements to assist agencies with enforcement. It applies to 
financial institutions, retailers, gift card issuers and others that 
provide gift cards, service providers, various federal and state 
agencies offering EFTs, etc. Staff estimates that Regulation E's 
recordkeeping requirements affect 391,120 firms offering EFT services 
to consumers and that are subject to the Commission's jurisdiction, at 
an average annual burden of one hour per firm, for a total of 391,120 
hours.

Burden Totals

Recordkeeping: 391,120 hours (375,881 + 15,239 carve-out); $6,805,488 
($6,540,328 + $265,160 carve-out), associated labor costs
Disclosures: 4,019,797 hours (4,002,868 + 16,929 carve-out); 
$128,236,961 ($127,696,924 + $540,037 carve-out), associated labor 
costs

                                                        Regulation E: Disclosures --Burden Hours
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                                                        Setup/monitoring                                       Transaction-related
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                                                                                                          Average burden
              Disclosures                                Average burden   Total setup/      Number of           per            Total       Total burden
                                           Respondents   per respondent    monitoring      transactions     transaction     transaction       (hours)
                                                             (hours)     burden (hours)                      (minutes)    burden (hours)
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Initial terms..........................          50,000              .5          25,000          500,000             .02             167          25,167
Change in terms........................          12,500              .5           6,250       16,500,000             .02           5,500          11,750
Periodic statements....................          50,000              .5          25,000      600,000,000             .02         200,000         225,000
Error resolution.......................          50,000              .5          25,000          500,000               5          41,667          66,667
Transaction receipts...................          50,000              .5          25,000    2,500,000,000             .02         833,333         858,333
Preauthorized transfers \1\............         257,620              .5         128,810        6,440,500             .25          26,835         155,645
Service provider notices...............          50,000             .25          12,500          500,000             .25           2,083          14,583
Govt. benefit notices..................           5,000              .5           2,500       50,000,000             .25         208,333         210,833
ATM notices \2\........................             250             .25              63       50,000,000             .25         208,333         208,396
Electronic check conversion \3\........          57,620              .5          28,810        1,152,400             .02             384          29,194
Payroll cards \4\......................             125              .5              63          500,000               3          25,000          25,063
Overdraft services \5\.................          50,000              .5          25,000        2,500,000             .02             833          25,833
Gift cards \6\.........................          50,000              .5          25,000    2,500,000,000             .02         833,333         858,333
Remittance transfers \7\
    Disclosures........................          35,000               1          35,000       18,000,000               1         300,000         335,000
    Error resolution...................          35,000               1          35,000       36,000,000               1         600,000         635,000
    Agent compliance...................          35,000               1          35,000       18,000,000               1         300,000         335,000
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        Total..........................  ..............  ..............  ..............  ...............  ..............  ..............       4,019,797
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\1\ Estimated preauthorized transfers have increased from the FTC's previously cleared estimate.
\2\ Estimated ATM transactions have increased from the FTC's previously cleared estimate.
\3\ Estimated electronic check conversion has decreased from the FTC's previously cleared estimate.
\4\ Payroll card entities and transactions have increased greatly over the years, in large part due to the evolving economy as well as companies seeking
  ways to cut costs and reduce the amount of paper used in daily operations.
\5\ Regulation E now covers overdraft services.
\6\ Regulation E now, in part, covers gift cards.
\7\ Regulation E now covers remittance transfers.


[[Page 6118]]


                                                    Regulation E: Recordkeeping and Disclosures--Cost
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                                                                Managerial             Skilled technical                Clerical
                                                         --------------------------------------------------------------------------------
                      Required task                          Time     Cost ($49/      Time                        Time                    Total cost ($)
                                                           (hours)       hr.)       (hours)    Cost ($30/hr.)   (hours)   Cost ($16/hr.)
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Recordkeeping...........................................          0            0       35,762       1,072,860    321,858       5,149,728       6,222,588
Disclosures:
    Initial terms.......................................      2,517      123,333       22,650         679,500          0               0         802,833
    Change in terms.....................................      1,175       57,575       10,750         322,500          0               0         380,075
    Periodic statements.................................     22,500    1,102,500      202,500       6,075,000          0               0       7,177,500
    Error resolution....................................      6,667      326,883       60,000       1,800,000          0               0       2,126,883
    Transaction receipts................................     85,833    4,205,817      772,500      23,175,000          0               0      27,380,817
    Preauthorized transfers.............................     15,565      762,685      140,080       4,202,400          0               0       4,965,085
    Service provider notices............................      1,458       71,442       13,125         393,750          0               0         465,192
    Govt. benefit notices...............................     21,083    1,033,067      189,750       5,692,500          0               0       6,725,567
    ATM notices.........................................     20,840    1,021,160      187,556       5,626,680          0               0       6,647,840
    Electronic check conversion.........................      2,919      143,031       26,275         788,250          0               0         931,281
    Payroll cards.......................................      2,506      122,794       22,557         676,710          0               0         799,504
    Overdraft services..................................      2,583      126,567       23,250         697,500          0               0         824,067
    Gift cards..........................................     85,833    4,205,817      772,500      23,175,000          0               0      27,380,817
Remittance transfers:
    Disclosures.........................................     33,500    1,641,500      301,500       9,045,000          0               0      10,686,500
    Error resolution....................................     63,500    3,111,500      571,500      17,145,000          0               0      20,256,500
    Agent compliance....................................     33,500    1,641,500      301,500       9,045,000          0               0      10,686,500
                                                         -----------------------------------------------------------------------------------------------
        Total Disclosures...............................  .........  ...........  ...........  ..............  .........  ..............     128,236,961
        Total Recordkeeping and Disclosures.............  .........  ...........  ...........  ..............  .........  ..............    $135,042,449
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3. Regulation M

    The CLA requires that covered entities provide consumers with 
accurate disclosure of the costs and terms of leases. Regulation M 
implements the CLA, establishing disclosure requirements to help 
consumers comparison shop and understand the terms of leases and 
recordkeeping requirements. It applies to vehicle lessors (such as auto 
dealers, independent leasing companies, and manufacturers' captive 
finance companies), computer lessors (such as computer dealers and 
other retailers), furniture lessors, various electronic commerce 
lessors, diverse types of lease advertisers, and others.
    Staff estimates that Regulation M's recordkeeping requirements 
affect approximately 54,442 firms within the FTC's jurisdiction leasing 
products to consumers at an average annual burden of one hour per firm, 
for a total of 54,442 hours.

Burden Totals

Recordkeeping: 54,442 hours (40,558 + 13,884 carve-out);
    $947,288 ($705,712 + $241,576 carve-out), associated labor costs
Disclosures: 68,403 hours (42,139 + 26,264 carve-out);
    $2,182,050 ($1,344,217 + $837,833 carve-out), associated labor 
costs

                                                         Regulation M: Disclosures--Burden Hours
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                 Disclosures                          Setup/monitoring                               Transaction-related
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                                                                Total setup/                   Average burden
                                               Average burden    monitoring       Number of          per            Total       Total burden
                 Respondents                   per respondent      burden       transactions     transaction     transaction       (hours)
                                                   (hours)        (minutes)                       (minutes)    burden (hours)
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Motor Vehicle Leases\1\......................          29,442               1          29,442       1,972,614             .50          16,438     45,880
Other Leases\2\..............................          25,000             .50          12,500         250,000             .25           1,042     13,542
Advertising..................................          13,471             .50           6,736         538,840             .25           2,245      8,981
                                              ----------------------------------------------------------------------------------------------------------
    Total....................................  ..............  ..............  ..............  ..............  ..............  ..............     68,403
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\1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
  payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. Sec.   1667(1); 12 CFR
  Sec.   1013.2(e)(1). Leases up to $50,000 (plus an annual adjustment) are now covered, which increases the breadth of transactions subject to the
  FTC's jurisdiction under Regulation M. This increase, however, is more than offset by the FTC now sharing PRA burden with the CFPB, which thus yields
  a net decrease from past FTC estimates of the number of transactions.
\2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
  appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. Sec.   1667(1); 12 CFR Sec.
    1013.2(e)(1). The figures shown for respondents and transactions reflect a net decrease from prior FTC estimates, given current market conditions
  and the new PRA burden sharing with the CFPB while also recognizing that the CLA and Regulation M now cover leases up to $50,000 (plus an annual
  adjustment).


[[Page 6119]]


                                Regulation M: Recordkeeping and Disclosures--Cost
----------------------------------------------------------------------------------------------------------------
                                    Managerial          Skilled technical           Clerical            Total
                              ----------------------------------------------------------------------------------
        Required task             Time    Cost ($49/    Time     Cost ($30/     Time     Cost ($16/
                                (hours)      hr.)     (hours)       hr.)      (hours)       hr.)       Cost ($)
----------------------------------------------------------------------------------------------------------------
Recordkeeping................          0          0      5,444      163,320     48,998      783,968      947,288
Disclosures:
    Motor Vehicle Leases.....      4,588    224,812     41,292    1,238,760          0            0    1,463,572
    Other Leases.............      1,354     66,346     12,188      365,640          0            0      431,986
    Advertising..............        898     44,002      8,083      242,490          0           $0      286,492
                              ----------------------------------------------------------------------------------
        Total Disclosures....  .........  .........  .........  ...........  .........  ...........    2,182,050
        Total Recordkeeping    .........  .........  .........  ...........  .........  ...........    3,123,338
         and Disclosures.....
----------------------------------------------------------------------------------------------------------------

4. Regulation Z

    The TILA was enacted to foster comparison credit shopping and 
informed credit decision making by requiring creditors and others to 
provide accurate disclosures regarding the costs and terms of credit to 
consumers. Regulation Z implements the TILA, establishing disclosure 
requirements to assist consumers and recordkeeping requirements to 
assist agencies with enforcement. These requirements pertain to open-
end and closed-end credit and apply to various types of entities, 
including mortgage companies; finance companies; auto dealerships; 
private education loan companies; merchants who extend credit for goods 
or services; credit advertisers; acquirers of mortgages; and others.
    FTC staff estimates that Regulation Z's recordkeeping requirements 
affect approximately 530,479 entities subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per entity, for 
a total of 663,099 hours.

Burden Totals

Recordkeeping: 663,099 hours (586,900 + 76,199 carve-out); $11,537,924 
($10,212,060 + $1,325,864 carve-out), associated labor costs
Disclosures: 12,000,274 hours (10,957,621 + 1,042,653 carve-out); 
$382,858,568 ($349,597,924 + $33,260,644 carve-out), associated labor 
costs

                                                         Regulation Z: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                        Setup/monitoring                                       Transaction-related
                                        ----------------------------------------------------------------------------------------------------------------
                                                                                                          Average burden
            Disclosures \1\                              Average burden   Total setup/      Number of           per            Total       Total burden
                                           Respondents   per respondent    monitoring      transactions     transaction     transaction       (hours)
                                                           \2\ (hours)   burden (hours)                    \3\ (minutes)  burden (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
    Initial terms......................          45,000             .75          33,750       20,000,000            .375         125,000         158,750
    Rescission notices \4\.............           1,875              .5             938          100,000             .25             417           1,355
    Subsequent disclosures.............          10,000             .75           7,500       62,500,000            .188         195,833         203,333
    Periodic statements................          45,000             .75          33,750    1,750,000,000           .0938       2,735,833       2,769,583
    Error resolution...................          45,000             .75          33,750        4,000,000               6         400,000         433,750
    Credit and charge card accounts....          25,000             .75          18,750       12,500,000            .375          78,125          96,875
    Settlement of estate debts \5\.....          45,000             .75          33,750        1,000,000            .375           6,250          40,000
    Special credit card requirements             25,000             .75          18,750       12,500,000            .375          78,125          96,875
     \6\...............................
    Home equity lines of credit \7\....           1,875              .5             938          875,000             .25           3,646           4,584
    College student credit card                   2,500              .5           1,250          250,000             .25           1,042           2,292
     marketing--ed. institutions \8\...
    College student credit card                     300             .75             225           18,000             .75             225             450
     marketing--card issuer reports \9\
    Posting and reporting of credit              25,000             .75          18,750       12,500,000            .375          78,125          96,875
     card agreements \10\..............
    Advertising........................         100,000             .75          75,000          300,000             .75           3,750          78,750
    Sale, transfer, or assignment of              1,875              .5             938        1,750,000             .25           7,292           8,230
     mortgages \11\....................

[[Page 6120]]

 
    Appraiser misconduct reporting \12\         625,000             .75         468,750       12,500,000            .375          78,125         546,875
Closed-end credit:
    Credit disclosures.................         380,480             .75         285,360      163,225,920            2.25       6,120,972       6,406,332
    Rescission notices \13\............          18,750              .5           9,375        7,500,000               1         125,000         134,375
    Redisclosures \14\.................         200,000              .5         100,000        1,000,000            2.25          37,500         137,500
    Variable rate mortgages \15\.......          17,500              .5           8,750          500,000             1.5          12,500          21,250
    High rate/high-fee mortgages and             10,000              .5           5,000          125,000             1.5           3,125           8,125
     higher priced mortgages \16\......
    Reverse mortgages \17\.............          12,500              .5           6,250           43,750               1             729           6,979
    Advertising........................         240,240              .5         120,120          480,480               1           8,008         128,128
    Private education loans \18\.......             100              .5              50           50,000             1.5           1,250           1,300
    Sale, transfer, or assignment of            100,000              .5          50,000        5,000,000             .25          20,833          70,833
     mortgages \19\....................
    Appraiser misconduct reporting \20\         625,000             .75         468,750       12,500,000            .375          78,125         546,875
                                        ----------------------------------------------------------------------------------------------------------------
        Total open-end credit..........  ..............  ..............  ..............  ...............  ..............  ..............       4,538,577
                                        ----------------------------------------------------------------------------------------------------------------
        Total closed-end credit........  ..............  ..............  ..............  ...............  ..............  ..............       7,461,697
                                        ----------------------------------------------------------------------------------------------------------------
        Total credit...................  ..............  ..............  ..............  ...............  ..............  ..............      12,000,274
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $50,000 plus an annual adjustment
  (except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in transactions. In some
  instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to Regulation Z have increased
  estimated PRA burden. The overall effect of these competing factors, combined with the FTC now sharing with the CFPB estimated PRA burden (for all but
  certain motor vehicle dealers) yields a net decrease from the FTC's prior reported estimate for open-end credit and a net increase from the FTC's
  prior burden estimate for closed-end credit.
\2\ Burden per respondent in many categories has increased compared to prior FTC estimates, due to changes in rules.
\3\ Burden per transaction in many categories has increased compared to prior FTC estimates, due to changes in rules.
\4\ Mortgages have decreased.
\5\ Regulation Z now requires disclosures for timely settlement of estate debts.
\6\ Regulation Z now has special credit card requirements.
\7\ Home equity lines of credit have decreased.
\8\ Regulation Z now requires higher education institutions to disclose credit card marketing agreements.
\9\ Regulation Z now requires card issuers to submit reports on college student credit card marketing.
\10\ Regulation Z now requires card issuers to post and report general credit card agreements.
\11\ Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
\12\ Regulation Z now requires reporting of appraiser misconduct.
\13\ Mortgages have decreased.
\14\ Regulation Z now has substantial redisclosure requirements. Previously, redisclosures were generally provided in the ordinary course of business.
  Rule changes since set numerous procedures and circumstances for redisclosures.
\15\ Variable rate mortgages have decreased.
\16\ Mortgages have decreased.
\17\ Reverse mortgages have decreased.
\18\ Regulation Z now requires disclosures for private education loans.
\19\ Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
\20\ Regulation Z now requires reporting of appraiser misconduct.


                                                    Regulation Z: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Managerial              Skilled technical               Clerical
                                                        ---------------------------------------------------------------------------------
                     Required task                           Time      Cost ($49/      Time                         Time      Cost ($16/  Total cost ($)
                                                           (hours)        hr.)       (hours)    Cost ($30/hr.)    (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping..........................................            0           $0       66,310      $1,989,300      596,789   $9,548,624     $11,537,924
Open-end credit Disclosures:
    Initial terms......................................       15,875      777,875      142,875       4,286,250            0            0       5,064,125

[[Page 6121]]

 
    Rescission notices.................................          135        6,615        1,220          36,600            0            0          43,215
    Subsequent disclosures.............................       20,333      996,317      183,000       5,490,000            0            0       6,486,317
    Periodic statements................................      276,958   13,570,942    2,492,625      74,778,750            0            0      88,349,692
    Error resolution...................................       43,375    2,125,375      390,375      11,711,250            0            0      13,836,625
    Credit and charge card accounts....................        9,688      474,712       87,187       2,615,610            0            0       3,090,322
    Settlement of estate debts.........................        4,000      196,000       36,000       1,080,000            0            0       1,276,000
    Special credit card requirements...................        9,688      474,712       87,187       2,615,610            0            0       3,090,322
    Home equity lines of credit........................          458       22,442        4,126         123,780            0            0         146,222
    College student credit card marketing--ed                    229       11,221        2,063          61,890            0            0          73,111
     institutions......................................
    College student credit card marketing--card issuer            45        2,205          405          12,150            0            0          14,355
     reports...........................................
    Posting and reporting of credit card agreements....        9,688      474,712       87,187       2,615,610            0            0       3,090,322
    Advertising........................................        7,875      385,875       70,875       2,126,250            0            0       2,512,125
    Sale, transfer, or assignment of mortgages.........          823       40,327        7,407         222,210            0            0         262,537
    Appraiser misconduct reporting.....................       54,687    2,679,663      492,188      14,765,640            0            0      17,445,303
                                                        ------------------------------------------------------------------------------------------------
        Total open-end credit..........................  ...........  ...........  ...........  ..............  ...........  ...........     144,780,593
--------------------------------------------------------------------------------------------------------------------------------------------------------
Closed-end credit Disclosures:
    Credit disclosures.................................      640,633   31,391,017    5,765,699     172,970,970            0            0     204,361,987
    Rescission notices.................................       13,437      658,413      120,938       3,628,140            0            0       4,286,553
    Redisclosures......................................       13,750      673,750      123,750       3,712,500            0            0       4,386,250
    Variable rate mortgages............................        2,125      104,125       19,125         573,750            0            0         677,875
    High-rate/high-fee mortgages and higher priced               969       47,481        8,719         261,570            0            0         309,051
     mortgages.........................................
    Reverse mortgages..................................          698       34,202        6,281         188,430            0            0         222,632
    Advertising........................................       12,813      627,837      115,315       3,459,450            0            0       4,087,287
    Private education loans............................          130        6,370        1,170          35,100            0            0          41,470
    Sale, transfer, or assignment of mortgages.........        7,083      347,067       63,750       1,912,500            0            0       2,259,567
    Appraiser misconduct reporting.....................       54,687    2,679,663      492,188      14,765,640            0            0      17,445,303
                                                        ------------------------------------------------------------------------------------------------
        Total closed-end credit........................  ...........  ...........  ...........  ..............  ...........  ...........     238,077,975
                                                        ------------------------------------------------------------------------------------------------
        Total Disclosures..............................  ...........  ...........  ...........  ..............  ...........  ...........     382,858,568
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Total Recordkeeping and Disclosures............  ...........  ...........  ...........  ..............  ...........  ...........     394,396,492
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Request for Comment: You can file a comment online or on paper. For 
the Commission to consider your comment, we must receive it on or 
before April 9, 2012. Write ``Regs BEMZ, PRA Comments, P084812'' on 
your comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including to the extent 
practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries 
to remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because you comment will be made public, you are solely responsible 
for making sure that your comment does not include any sensitive 
personal information, like anyone's Social Security number, date of 
birth, driver's license number or other state identification number or 
foreign country equivalent, passport number, financial account number, 
or credit or debit card number. You are also solely responsible for 
making sure that your comment does not include any sensitive health 
information, like medical records or other individually identifiable 
health information. In addition, do not include any ``[t]rade secret or 
any commercial or financial information which is obtained from any 
person and which is privileged or confidential'' as provided in Section 
6(f) of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns devices, manufacturing processes, or customer names.
    If you want the Commission to give you comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c)).\16\ Your comment will be kept confidential only if 
the FTC General Counsel, in his or her sole discretion, grants your 
request in

[[Page 6122]]

accordance with the law and the public interest.
---------------------------------------------------------------------------

    \16\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), CFR 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/RegsBEMZpra, by following the instructions on the web-based form. 
If this Notice appears at http://www.regulations.gov/#!home, you also 
may file a comment through that Web site.
    If you file your comment on paper, write ``Regs BEMZ, PRA Comments, 
P084812'' on your comment and on the envelope, and mail or deliver it 
to the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex J) 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at to read this Notice and the news 
release describing it. The FTC Act and other laws that the Commission 
administers permit the collection of public comments to consider and 
use in this proceeding as appropriate. The Commission will consider all 
timely and responsive public comments that it receives on or before 
April 9, 2012. You can find more information, including routine uses 
permitted by the Privacy Act, in the Commission's privacy policy, at 
http://www.ftc.gov/ftc/privacy.htm.

Willard K. Tom,
General Counsel.
[FR Doc. 2012-2665 Filed 2-6-12; 8:45 am]
BILLING CODE 6750-01-P