[Federal Register Volume 79, Number 250 (Wednesday, December 31, 2014)]
[Notices]
[Pages 78948-78950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30397]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Requirements: Information 
Collection Renewal; Submission for OMB Review; Debt Cancellation 
Contracts and Debt Suspension Agreements

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to take this opportunity to comment on a continuing 
information collection, as required by the Paperwork Reduction Act of 
1995 (PRA).

[[Page 78949]]

    In accordance with the requirements of the PRA, the OCC may not 
conduct or sponsor, and the respondent is not required to respond to, 
an information collection unless it displays a currently valid Office 
of Management and Budget (OMB) control number.
    Currently, the OCC is soliciting comment concerning its renewal of 
an information collection titled ``Debt Cancellation Contracts and Debt 
Suspension Agreements.'' The OCC is also giving notice that it has sent 
the collection to OMB for review.

DATES: You should submit written comments by: January 30, 2015. Because 
paper mail in the Washington, DC area and at the OCC is subject to 
delay, commenters are encouraged to submit comments by email if 
possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0224, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to [email protected]. 
You may personally inspect and photocopy comments at the OCC, 400 7th 
Street SW., Washington, DC 20219. For security reasons, the OCC 
requires that visitors make an appointment to inspect comments. You may 
do so by calling (202) 649-6700. Upon arrival, visitors will be 
required to present valid government-issued photo identification and to 
submit to security screening in order to inspect and photocopy 
comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0224, U.S. Office of Management and Budget, 725 17th 
Street NW., #10235, Washington, DC 20503, or by email to: oira 
[email protected].

FOR FURTHER INFORMATION CONTACT: Johnny Vilela or Mary H. Gottlieb, OCC 
Clearance Officers, (202) 649-5490, for persons who are deaf or hard of 
hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street 
SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal 
agencies must obtain approval from OMB for each collection of 
information they conduct or sponsor. ``Collection of information'' is 
defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party.
    The OCC is proposing to extend OMB approval of the following 
information collection:
    Title: Debt Cancellation Contracts and Debt Suspension Agreements.
    OMB Control No.: 1557-0224.
    Description: This submission covers an existing regulation, 12 CFR 
37, and involves no change to the regulation or the information 
collection. The OCC requests that OMB approve its revised estimates and 
renew its approval of the information collection. The estimates have 
been revised to reflect the current number of national banks.
    Twelve U.S.C. 24(Seventh) authorizes national banks to enter into 
Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements 
(DSAs). Part 37 requires national banks and Federal branches and 
agencies of foreign banks (banks) to disclose information about a DCC 
or a DSA using either a short or long form disclosure. The short form 
disclosure usually is made orally and issued at the time the bank 
firsts solicits the purchase of a contract. The long form disclosure 
usually is made in writing and issued before the customer completes the 
purchase of the contract. There are special rules for transactions by 
telephone, solicitations using written mail inserts or ``take one'' 
applications, and electronic transactions. Part 37 provides two forms 
of disclosure that serve as models for satisfying the requirements of 
the rule. Use of the forms is not mandatory, however, and a bank may 
adjust the form and wording of its disclosures so long as it meets the 
requirements of the regulation. The requirements of part 37 enhance 
consumer protections for customers who purchase DCCs and DSAs from 
banks and ensure that banks offer these products in a safe and sound 
manner by requiring them to effectively manage their risk exposure.

Section 37.6

    Section 37.6 requires the form of the disclosures to be readily 
understandable and meaningful. The content of the short and long form 
may vary, depending on whether a bank elects to provide a summary of 
the conditions and exclusions in the long form disclosures or refer the 
customer to the pertinent paragraphs in the contract. For example, the 
short form disclosure requires a bank to instruct the customer to read 
carefully both the long form disclosures and the contract for a full 
explanation of the contract terms, while the long form gives a bank the 
option of either summarizing the limitations or advising the customer 
that a complete explanation of the eligibility requirements, 
conditions, and exclusions is available in the contract and identifying 
the paragraphs where a customer may find that information.
    Section 37.6 and Appendices A and B to part 37 require a bank to 
provide the following disclosures (summarized below), as appropriate:
     Optional (anti-tying)--A bank must inform the customer 
that purchase of the product is optional and neither its decision 
whether to approve the loan nor the terms and conditions of the loan 
are conditioned on the purchase of a DCC or DSA (short and long form).
     Explanation of debt suspension agreement--A bank must 
disclose that if a customer activates the agreement, the customer's 
duty to pay the loan principal and interest is only suspended and the 
customer must fully repay the loan after the period of suspension has 
expired (long form).
     Amount of the fee--A bank must make disclosures regarding 
the amount of the fee. The content of the disclosure depends on whether 
the credit is open-end or closed-end. In the case of closed-end credit, 
the bank must disclose the total fee. In the case of open-end credit, 
the bank must either disclose that the periodic fee is based on the 
account balance multiplied by a unit cost and provide the unit cost or 
disclose the formula used to compute the fee (long form).
     Lump sum payment of fee--A bank must disclose, where 
appropriate, that a customer has the option to pay the fee in a single 
payment or in periodic payments. This disclosure is not appropriate in 
the case of a DCC or DSA provided in connection with a home mortgage 
loan because the option to pay the fee in a single payment is not 
available in that case. Banks must also disclose that adding the fee to 
the amount borrowed will increase the cost of the contract (short and 
long form).
     Lump sum payment of fee with no refund--A bank must 
disclose that the customer has the option to choose a contract with or 
without a refund provision. This disclosure also states that prices of 
refund and no-refund products are likely to differ (short and long 
form).
     Refund of fee paid in lump sum--If a bank permits a 
customer to pay the fee in a single payment and to add the fee to the 
amount borrowed, the bank must disclose its cancellation policy.

[[Page 78950]]

The disclosure informs the customer of the bank's refund policy, as 
applicable, i.e., that the DCC or DSA may be: (i) Canceled at any time 
for a refund; (ii) cancelled within a specified number of days for a 
full refund; or (iii) cancelled at any time with no refund (short and 
long form).
     Whether use of credit line is restricted--A bank must 
inform a customer if the customer's activation of the contract would 
prohibit the customer from incurring additional charges or using the 
credit line (long form).
     Termination of a DCC or DSA-- If termination is permitted 
during the life of the loan, a bank must explain the circumstances 
under which a customer or the bank may terminate the contract (long 
form).
     Additional disclosures--A bank must inform consumers that 
it will provide additional information before the customer is required 
to pay for the product (short form).
     Eligibility requirements, conditions, and exclusions--A 
bank must describe any material limitations relating to the DCC or DSA 
(short and long form).

Section 37.7

    Section 37.7 requires a bank to obtain a customer's written 
affirmative election to purchase a contract and written acknowledgment 
of receipt of the disclosures required by Sec.  37.6. The section 
further provides that the election and acknowledgment must be 
conspicuous, simple, direct, readily understandable, and designed to 
call attention to their significance. Pursuant to Sec.  37.7(b), if the 
sale of the contract occurs by telephone, the customer's affirmative 
election to purchase and acknowledgment of receipt of the required 
short form may be made orally, provided the bank: (i) Maintains 
sufficient documentation to show that the customer received the short 
form disclosures and then affirmatively elected to purchase the 
contract; (ii) mails the affirmative written election and written 
acknowledgment, together with the long form disclosures required by 
Sec.  37.6, to the customer within 3 business days after the telephone 
solicitation and maintains sufficient documentation to show it made 
reasonable efforts to obtain the documents from the customer; and (iii) 
permits the customer to cancel the purchase of the contract without 
penalty within 30 days after the bank has mailed the long form 
disclosures to the customer.
    Pursuant to Sec.  37.7(c), if the DCC or DSA is solicited through 
written materials such as mail inserts or ``take one'' applications and 
the bank provides only the short form disclosures in the written 
materials, then the bank shall mail the acknowledgment, together with 
the long form disclosures, to the customer. The bank may not obligate 
the customer to pay for the contract until after the bank has received 
the customer's written acknowledgment of receipt of disclosures, unless 
the bank takes certain steps, maintains certain documentation, and 
permits the customer to cancel the purchase within 30 days after 
mailing the long form disclosures to the customer. Section 37.6(d) 
permits the affirmative election and acknowledgment to be made 
electronically.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit.
    Number of Respondents: 1,219.
    Total Annual Responses: 1,219.
    Frequency of Response: On occasion.
    Total Annual Burden Hours: 29,256 hours.
    On October 20, 2014, the OCC issued a notice for 60 days of comment 
regarding this collection. 79 FR 62710. No comments were received. 
Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information shall have practical utility;
    (b) The accuracy of the OCC's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: December 22, 2014.
Stuart E. Feldstein,
Director, Legislative & Regulatory Activities Division.
[FR Doc. 2014-30397 Filed 12-30-14; 8:45 am]
BILLING CODE 4810-33-P