[Federal Register Volume 80, Number 63 (Thursday, April 2, 2015)]
[Notices]
[Pages 17749-17757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-07552]


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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 FTC intends to ask the Office of Management and Budget 
(``OMB'') to extend for an additional three years the current Paperwork 
Reduction Act (``PRA'') clearance for the FTC's enforcement of the 
information collection requirements in four consumer financial 
regulations enforced by the Commission. Those clearances expire on June 
30, 2015.

DATES: Comments must be filed by June 1, 2015.

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, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex J), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex J), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds or Thomas Kane, 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 
published for public comment and issued 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 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011); 12 CFR 
1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); 12 CFR 1013 (Reg. M) (76 
FR 78500, Dec. 19, 2011); 12 CFR 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 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 motor vehicle dealers (for 
brevity, referred to in the burden summaries below as a ``carve-
out'').\5\ The division of PRA burden

[[Page 17750]]

hours not attributable to motor vehicle dealers is reflected in the 
CFPB's PRA clearance requests to OMB, 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\ See Dodd-Frank Act Sec.  1029 (a), 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.
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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 certain motor 
vehicle dealers predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or both, 
that, among other things, assign their contracts to unaffiliated third 
parties.\6\ Because the FTC has exclusive jurisdiction to enforce these 
rules for such motor vehicle dealers and retains its concurrent 
authority with the CFPB for other types of motor vehicle dealers, and 
in view of the different types of motor vehicle dealers, the FTC is 
including for itself the entire PRA burden for all motor vehicle 
dealers in the burden estimates below.
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    \6\ 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 submit reports, keep records, or provide information to 
a third party. See 44 U.S.C. 3502(3); 5 CFR 1320.3(c).
    All four of these regulations require covered entities to keep 
certain records, but FTC staff believes these records are kept in the 
normal course of business even absent the particular recordkeeping 
requirements.\7\ 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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    \7\ 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.\8\
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    \8\ 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.\9\ 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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    \9\ 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 $56 for managerial oversight, $42 for skilled 
technical services, and $17 for clerical work. These figures are 
averages drawn from Bureau of Labor Statistics data.\10\ 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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    \10\ These inputs are based broadly on mean hourly data found 
within the ``Bureau of Labor Statistics, Economic News Release,'' 
April 1, 2014, Table 1, ``National employment and wage data from the 
Occupational Employment Statistics survey by occupation, May 2013.'' 
http://www.bls.gov/news.release/ocwage.t01.htm.
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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 530,080 credit firms subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per firm for a 
total of 662,600 hours.\11\ Staff also estimates that the requirement 
that mortgage creditors monitor information about race/national origin, 
sex, age, and marital status imposes a maximum burden of one minute 
each (of skilled

[[Page 17751]]

technical time) for approximately 2.9 million credit applications 
(based on industry data regarding the approximate number of mortgage 
purchase and refinance originations), for a total of 48,333 hours.\12\ 
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.\13\ 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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    \11\ 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.
    \12\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \13\ 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 mortgage credit 
with first liens to provide a copy of the appraisal report or other 
written valuation to applicants.\14\ 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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    \14\ While the rule also requires the creditor to provide a 
short written disclosure regarding the appraisal process, the 
disclosure is now provided by the CFPB, and may be classified as a 
warning label supplied by the Federal government. As a result, it is 
not a ``collection of information'' for PRA purposes; it is not, 
therefore, included in burden estimates below. See 5 CFR 
1320.3(c)(2), and CFPB, Final Rule, Disclosure and Delivery 
Requirements for Copies of Appraisals and Other Written Valuations 
Under the Equal Credit Opportunity Act (Regulation B), 78 FR 7216, 
7247 (Jan. 31, 2013).
    \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: 712,860 hours (637,310 + 75,550 carve-out for motor 
vehicles); $15,031,620 ($13,550,520 + $1,481,100 carve-out for motor 
vehicles), associated labor costs.
    Disclosures: 1,166,563 hours (1,036,040 + 130,523 carve-out for 
motor vehicles); $50,628,816 ($44,964,122 + $5,664,694 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                   Total burden
               Disclosures                                Average burden   Total setup/      Number of          per            Total          (hours)
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction
                                                              (hours)     burden (hours)                     (minutes)    burden (hours)
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Credit history reporting................         132,520             .25          33,130      66,260,000             .25         276,083         309,213
Adverse action notices..................         530,000             .75         397,500     106,016,000             .25         441,733         839,293
Appraisal reports/written valuations....           5,000               1           5,000       1,450,000             .50          12,083          17,083
Self-test disclosures...................           1,375              .5             688          68,750             .25             286             974
                                                                                                                                         ---------------
    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............       1,166,563
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\1\ The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations (with the FTC
  having approximately one-half of that amount). An increase in burden is noted due to changed rules requiring provision of appraisals reports as well
  as other written valuations, for first lien mortgages. The former ``Appraisal disclosure'' item was deleted; the information is now supplied by the
  rule.
\2\ The transaction-related figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. The figures assume that approximately
  three-quarters of applicable mortgage transactions (.75 x 2,900,000, or 2,175,000) would not otherwise provide this information, and that another
  725,000 transactions (not closed, etc.) would be affected; the FTC would have one-half of the total, or 1,450,000.


                                                    Regulation B--Recordkeeping and Disclosures--Cost
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                                               Managerial                   Skilled technical                   Clerical                             Total
           Required task            ------------------------------------------------------------------------------------------------ Total Cost ($)   Cost
                                      Time (hours)   Cost ($56/hr.)   Time (hours)   Cost ($42/hr.)   Time (hours)   Cost ($17/hr.)                   ($)
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General recordkeeping..............               0              $0          66,260      $2,782,920         596,340     $10,137,780     $12,920,700
Other recordkeeping................               0               0          48,333       2,029,986               0               0       2,029,986
Recordkeeping of self-test.........               0               0           1,375          57,750               0               0          57,750
Recordkeeping of corrective action.               0               0             552          23,184               0               0          23,184
    Total Recordkeeping............  ..............  ..............  ..............  ..............  ..............  ..............      15,031,620
Disclosures:
Credit history reporting...........          30,921       1,731,576         278,292      11,688,264               0               0      13,419,840
Adverse action notices.............          83,929       4,700,024         755,364      31,725,288               0               0      36,425,312

[[Page 17752]]

 
Appraisal reports..................            1708          95,648          15,375         645,750               0               0         741,398
Self-test disclosure...............              97           5,432             877          36,834               0               0          42,266
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    Total Disclosures..............  ..............  ..............  ..............  ..............  ..............  ..............      50,628,816
                                                                                                                                    ====================
        Total Recordkeeping and      ..............  ..............  ..............  ..............  ..............  ..............      65,660,436
         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 327,460 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 327,460 
hours.
Burden Totals
    Recordkeeping: 327,460 hours (312,500 + 15,040 carve-out); 
$6,385,470 ($6,092,190 + $293,280 carve-out), associated labor costs.
    Disclosures: 7,179,271 hours (7,162,564 + 16,707 carve-out); 
$311,588,696 ($310,863,608 + $725,088 carve-out), associated labor 
costs.

                                                         Regulation E--Disclosures--Burden Hours
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                                                         Setup/Monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                                                                          Average burden                   Total burden
               Disclosures                                Average burden   Total setup/      Number of          per            Total          (hours)
                                            Respondents   per respondent    monitoring     transactions     transaction     transaction
                                                              (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\.............         257,520              .5         128,760       6,438,000             .25          26,825         155,585
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.............................             250             .25              63      50,000,000             .25         208,333         208,396
Electronic check conversion \2\.........          57,520              .5          28,760       1,150,400             .02             383          29,144
Payroll cards...........................             125              .5              63         500,000               3          25,000          25,063
Overdraft services......................          50,000              .5          25,000       2,500,000             .02             833          25,833
Gift cards \3\..........................          25,000              .5          12,500   1,250,000,000             .02         416,667         429,167
        Remittance transfers: \4\
    Disclosures.........................           5,000            1.25           6,250     100,000,000              .9       1,500,000       1,506,250
    Error resolution....................           5,000            1.25           6,250     125,000,000              .9       1,875,000       1,881,250
    Agent compliance....................           5,000            1.25           6,250     100,000,000              .9       1,500,000       1,506,250
                                                                                                                                         ---------------
        Total...........................  ..............  ..............  ..............  ..............  ..............  ..............       7,179,271
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\1\ Preauthorized transfer respondents and transactions have decreased slightly.
\2\ Electronic check conversion respondents and transactions have decreased slightly.
\3\ Gift card entities and transactions under FTC jurisdiction (which excludes banks and bank transactions) have decreased.
\4\ Remittance transfer respondents now focus primarily on those that may offer services and are responsible for legal requirements (not separate
  inclusion of their offices). Legal changes have eased compliance, but they require system changes causing an increase in setup burden and a decrease
  in transaction burden. Remittance transfers have increased substantially but error resolutions have increased to a smaller degree due to changes in
  legal requirements. The resulting transaction burden in each category for remittance transfers has increased due to the upswing in transaction volume.


[[Page 17753]]


                                                    Regulation E--Recordkeeping and Disclosures--Cost
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                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($56/hr.)   Time (hours)   Cost ($42/hr.)   Time (hours)   Cost ($17/hr.)
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Recordkeeping...........................               0              $0          32,746      $1,375,332         294,714      $5,010,138      $6,385,470
Disclosures:
Initial terms...........................           2,517         140,952          22,650         951,300               0               0       1,092,252
Change in terms.........................           1,175          65,800          10,750         451,500               0               0         517,300
Periodic statements.....................          22,500       1,260,000         202,500       8,505,000               0               0       9,765,000
Error resolution........................           6,667         373,352          60,000       2,520,000               0               0       2,893,352
Transaction receipts....................          85,833       4,806,648         772,500      32,445,000               0               0      37,251,648
Preauthorized transfers.................          15,565         871,248         140,027       5,881,134               0               0       6,752,382
Service provider notices................           1,458          81,648          13,125         551,250               0               0         632,898
Govt. benefit notices...................          21,083       1,180,648         189,750       7,969,500               0               0       9,150,148
ATM notices.............................          20,840       1,167,040         187,556       7,877,352               0               0       9,044,392
Electronic check conversion.............           2,919         163,184          26,230       1,101,660               0               0       1,264,844
Payroll cards...........................           2,506         140,336          22,557         947,394               0               0       1,087,730
Overdraft services......................           2,583         144,648          23,250         976,500               0               0       1,121,148
Gift cards..............................          85,833       2,403,352         386,250      16,222,500               0               0      18,626,852
Remittance transfers:
    Disclosures.........................         150,625       8,435,000       1,355,625      56,936,250               0               0      65,371,250
    Error resolution....................         188,125      10,535,000       1,693,125      71,111,250               0               0      81,646,250
    Agent compliance....................         150,625       8,435,000       1,355,625      56,936,250               0               0      65,371,250
                                                                                                                                         ---------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............     311,588,696
                                                                                                                                         ===============
        Total Recordkeeping and           ..............  ..............  ..............  ..............  ..............  ..............     317,974,166
         Disclosures....................
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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 32,577 firms within the FTC's jurisdiction leasing 
products to consumers at an average annual burden of one hour per firm, 
for a total of 32,577 hours.
Burden Totals \16\
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    \16\ Recordkeeping and disclosure burden estimates for 
Regulation M are more substantial for motor vehicle leases than for 
other leases, including burden estimates based on market changes and 
regulatory definitions of coverage. As noted above, for purposes of 
burden calculations, and in view of the different types of motor 
vehicle dealers, the FTC is including for itself the entire PRA 
burden for all motor vehicle dealers in the burden estimates below.
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    Recordkeeping: 32,577 hours (5,000 + 27,577 carve-out); $635,259 
($97,500 + $537,759 carve-out), associated labor costs.
    Disclosures: 73,933 hours (2,986 + 70,947 carve-out); $3,208,702 
($129,598 + $3,079,104 carve-out), associated labor costs.

                                                         Regulation M--Disclosures--Burden Hours
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                                                         Setup/Monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
               Disclosures                                Average burder   Total setup/                       Average          Total       Total burden
                                            Respondents   per respondent    monitoring       Number of      burdern per     transaction       (hours)
                                                              (hours)     burden (hours)   transactions     transaction   burden (hours)
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Motor Vehicle Leases \1\................          27,577               1          27,577       4,000,000             .50          33,333          60,910
Other Leases \2\........................           5,000             .50           2,500         100,000             .25             417           2,917
Advertising \3\.........................          15,181             .50           7,591         603,490             .25           2,515          10,106
    Total...............................  ..............  ..............  ..............  ..............  ..............  ..............          73,933
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
  payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). While the number of respondents for vehicle leases has decreased, the number of vehicle lease transactions has increased, with market
  changes, from past FTC estimates. Additionally, leases up to $54,600 (plus an annual adjustment) are now covered. The resulting total burden has
  increased.

[[Page 17754]]

 
\2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
  appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  1013.2(e)(1). The number of respondents has decreased, based on market changes in companies and types of transactions they offer, and the PRA burden
  sharing with the CFPB; the number of such transactions has also declined, based on types of transactions offered that are covered by the CLA. Leases
  up to $54,600 (plus an annual adjustment) are now covered. The resulting total burden has decreased.
\3\ Respondents for advertising have increased as have lease advertisements, based on market changes, from past FTC estimates. More types of lease
  advertisements are occurring. The resulting total burden has increased.


                                                    Regulation M--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
              Required task              ------------------------------------------------------------------------------------------------ Total cost ($)
                                           Time (hours)   Cost ($56/hr.)   Time (hours)   Cost ($42/hr.)   Time (hours)   Cost ($17/hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0           3,258        $136,836          29,319        $498,423        $635,259
Disclosures:
Motor Vehicle Leases....................           6,091         341,096          58,419       2,302,398               0               0       2,643,494
Other Leases............................             292          16,352           2,625         110,250               0               0         126,602
Advertising.............................           1,011          56,616           9,095         381,990               0               0         438,606
                                                                                                                                         ---------------
    Total Disclosures...................  ..............  ..............  ..............  ..............  ..............  ..............       3,208,702
                                                                                                                                         ===============
    Total Recordkeeping and Disclosures.  ..............  ..............  ..............  ..............  ..............  ..............       3,843,961
--------------------------------------------------------------------------------------------------------------------------------------------------------

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. 
New requirements have been established in the mortgage area, including 
for high cost mortgages, higher-priced mortgage loans,\17\ ability to 
pay of mortgage consumers, mortgage servicing, loan originators, and 
certain integrated mortgage disclosures.
---------------------------------------------------------------------------

    \17\ While Regulation Z also requires the creditor to provide a 
short written disclosure regarding the appraisal process for higher-
priced mortgage loans, the disclosure is now provided by the CFPB, 
and may be classified as a label supplied by the Federal government. 
As a result, it is not a ``collection of information'' for PRA 
purposes; it is not, therefore, included in burden estimates below. 
See 5 CFR 1320.3(c)(2), and CFPB, Final Rule, Appraisals for Higher-
Priced Mortgage Loans, 78 FR 10368, 10430 (Feb. 13, 2013), and 
Supplemental Final Rule, Appraisals for Higher-Priced Mortgage 
Loans, 78 FR 78520, 78575 (Dec. 26, 2013).
---------------------------------------------------------------------------

    FTC staff estimates that Regulation Z's recordkeeping requirements 
affect approximately 530,080 entities subject to the Commission's 
jurisdiction, at an average annual burden of 1.25 hours per entity with 
.25 additional hours per entity for 5,000 entities (ability to pay), 
and 5 additional hours per entity for 5,000 entities (loan 
originators).
Burden Totals
    Recordkeeping: 688,850 hours (613,650 + 75,200 carve-out); 
$13,432,575 ($11,966,175 + $1,466,400 carve-out), associated labor 
costs.
    Disclosures: 13,008,452 hours (11,964,361 + 1,044,091 carve-out); 
$553,563,761 ($508,250,213 + $45,313,548 carve-out), associated labor 
costs.

                                                         Regulation Z--Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Setup/monitoring                               Transaction-related
                                         ------------------------------------------------------------------------------------------------
                                                          Average burden   Total setup/                   Average burden       Total       Total burden
             Disclosures \1\                                    per         monitoring       Number of          per         transaction       (hours)
                                            Respondents   respondent \2\      burden       transactions     transaction       burden
                                                              (hours)         (hours)                           \3\           (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:
    Initial terms.......................          45,000             .75          33,750      20,000,000            .375         125,000         158,750
    Rescission notices \4\..............           1,500              .5             750           8,000             .25              33             783
    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..........          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
    Home equity lines of credit \5\.....           1,500              .5             750          10,000             .25              42             792
    Home equity lines of credit-high                 500               2           1,000           5,000               2             167           1,167
     cost mortgages \6\.................
    College student credit card                    2,500              .5           1,250         250,000             .25           1,042           2,292
     marketing--ed. institutions........
    College student credit card                      300             .75             225          18,000             .75             225             450
     marketing--card issuer reports.....
    Posting and reporting of credit card          25,000             .75          18,750      12,500,000            .375          78,125          96,875
     agreements.........................
    Advertising.........................         100,000             .75          75,000         300,000             .75           3,750          78,750

[[Page 17755]]

 
    Sale, transfer, or assignment of               1,500              .5             750       1,750,000             .25           7,292           8,042
     mortgages \7\......................
    Appraiser misconduct reporting......         625,000             .75         468,750      12,500,000            .375          78,125         546,875
    Mortgage servicing \8\..............           2,500              .5           1,250         500,000              .5           4,167           5,417
    Loan originators \9\................           2,500               2           5,000          25,000               5           2,083           7,083
Closed-end credit:
    Credit disclosures \10\.............         380,080             .75         285,060     163,054,320            2.25       6,108,912       6,399,597
    Rescission notices \11\.............           5,000              .5           2,500       7,500,000               1         125,000         127,500
    Redisclosures.......................         200,000              .5         100,000       1,000,000            2.25          37,500         137,500
    Integrated mortgage disclosures \12\           5,000              10          50,000      15,000,000             3.5         875,000         925,000
    Variable rate mortgages \13\........           5,000               1           5,000         500,000            1.75          14,583          19,583
    High cost mortgages \14\............           3,000               1           3,000          75,000               2           2,500           5,500
    Higher priced mortgages \15\........           3,000               1           3,000          25,000               2             833           3,833
    Reverse mortgages \16\..............           7,500              .5           3,750          35,000               1             583           4,333
    Advertising \17\....................         248,360              .5         124,180       2,483,600               1          41,393         165,573
    Private education loans.............             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..........................
    Ability to pay/qualified mortgage              5,000             .75           3,750               0               0               0           3,750
     \18\...............................
    Appraiser misconduct reporting......         625,000             .75         468,750      12,500,000            .375          78,125         546,875
    Mortgage servicing \19\.............           5,000               1           5,000       1,000,000            2.25          37,500          42,500
    Loan originators \20\...............           2,500               2           5,000          25,000               5           2,083           7,083
                                                                                                                                         ---------------
        Total open-end credit...........  ..............  ..............  ..............  ..............  ..............  ..............       4,547,692
                                                                                                                                         ---------------
        Total closed-end credit.........  ..............  ..............  ..............  ..............  ..............  ..............       8,460,760
                                                                                                                                         ===============
        Total credit....................  ..............  ..............  ..............  ..............  ..............  ..............     13,008,452
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $54,600 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 sharing with the CFPB estimated PRA burden (for all but
  certain motor vehicle dealers) yields a net increase from the FTC's prior reported estimate for open-end credit and for closed-end credit.
\2\ Burden per respondent in some categories has increased compared to prior FTC estimates, due to changes in rules.
\3\ Burden per transaction in some categories has increased compared to prior FTC estimates, due to changes in rules.
\4\ Respondents for mortgages involving rescission have decreased, as have transactions.
\5\ Respondents for home equity lines of credit have decreased, as have transactions.
\6\ Regulation Z high cost mortgage rules now cover certain open-end mortgages, and a new counseling rule also applies.
\7\ Respondents for sale, transfer or assignment of mortgages have decreased.
\8\ Regulation Z has expanded various mortgage servicing requirements for prompt crediting and payoff responses.
\9\ Regulation Z includes new loan originator compensation requirements.
\10\ Respondents for credit disclosures have decreased, as have transactions.
\11\ Respondents for mortgages involving rescission have decreased.
\12\ Regulation Z now has integrated mortgage disclosure requirements for loan estimates and loan closing documents, with other requirements.
\13\ Respondents for variable rate mortgages have decreased but Regulation Z has expanded mortgage disclosure requirements affecting subsequent
  disclosures, increasing burden.
\14\ Regulation Z high rate/high fee mortgages are now called high cost mortgages. Respondents in high cost mortgages have decreased, but the rules
  cover more types of mortgages and include a counseling requirement, increasing burden. However, these types of transactions have decreased, reducing
  total burden.
\15\ Respondents for higher priced mortgages have decreased. However, Regulation Z now has certain appraisal requirements for higher-priced mortgages,
  increasing burden. However, these types of transactions have decreased, reducing total burden.
\16\ Reverse mortgage respondents and transactions have decreased.
\17\ Advertising respondents have increased, as have transactions, causing an increased total burden.
\18\ Regulation Z now includes ability to pay rules that affect setup costs.
\19\ Regulation Z has expanded various mortgage servicing requirements for prompt crediting and payoff responses. It also requires periodic statements
  (or a coupon book, for fixed-rate mortgages).
\20\ Regulation Z includes new loan originator compensation requirements.


                                                    Regulation Z--Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    Managerial                   Skilled technical                   Clerical
                                         ------------------------------------------------------------------------------------------------
              Required task                                 Cost  ($56/                     Cost  ($42/                     Cost  ($17/   Total cost ($)
                                           Time  (hours)       hr.)        Time  (hours)       hr.)        Time (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping...........................               0              $0          68,885      $2,893,170         619,965     $10,539,405     $13,432,575
Open-end credit Disclosures:
    Initial terms.......................          15,875         889,000         142,875       6,000,750               0               0       6,889,750
    Rescission notices..................              78           4,368             705          29,610               0               0          33,978
    Subsequent disclosures..............          20,333       1,138,648         183,000       7,686,000               0               0       8,824,648
    Periodic statements.................         276,958      15,509,648       2,492,625     104,690,250               0               0     120,199,898
    Error resolution....................          43,375       2,429,000         390,375      16,395,750               0               0      18,824,750
    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
    Home equity lines of credit-high                 117           6,552           1,050          44,100               0               0          50,662
     cost mortgages.....................
    College student credit card                      229          11,221           2,063          61,890               0               0          73,111
     marketing--ed institutions.........

[[Page 17756]]

 
    College student credit card                       45           2,205             405          12,150               0               0          14,355
     marketing--card issuer reports.....
    Posting and reporting of credit card           9,688         474,712          87,187       2,615,610               0               0       3,090,322
     agreements.........................
    Advertising.........................           7,875         385,875          70,875       2,126,250               0               0       2,512,125
    Sale, transfer, or assignment of                 823          40,327           7,407         222,210               0               0         262,537
     mortgages..........................
    Appraiser misconduct reporting......          54,687       2,679,663         492,188      14,765,640               0               0      17,445,303
    Mortgage servicing..................             542          30,352           4,875         204,750               0               0         235,102
    Loan originators....................             708          39,648           6,375         267,750               0               0         307,398
                                         ---------------------------------------------------------------------------------------------------------------
        Total open-end credit...........  ..............  ..............  ..............  ..............  ..............  ..............     186,366,805
Closed-end credit Disclosures:
    Credit disclosures..................         639,960      35,837,760       5,759,637     241,904,754               0               0     277,742,514
    Rescission notices..................          12,750         714,000         114,750       4,819,500               0               0       5,533,500
    Redisclosures.......................          13,750         770,000         123,750       5,197,500               0               0       5,967,500
    Integrated mortgage disclosures.....          92,500       5,180,000         832,500      34,965,000               0               0      40,145,000
    Variable rate mortgages.............           1,958         109,648          17,625         740,250               0               0         849,898
    High cost mortgages.................             550          30,800           4,950         207,900               0               0         238,700
    Higher priced mortgages.............             383          21,448           3,450         144,900               0               0         166,348
    Reverse mortgages...................             433          24,248           3,900         163,800               0               0         188,048
    Advertising.........................          16,557         927,192         149,016       6,258,672               0               0       7,185,864
    Private education loans.............             130           7,280           1,170          49,140               0               0          56,420
    Sale, transfer, or assignment of               7,083         396,648          63,750       2,677,500               0               0       3,074,148
     mortgages..........................
    Ability to pay/qualified mortgage...             375          21,000           3,375         141,750               0               0         162,750
    Appraiser misconduct reporting......          54,687       3,062,472         492,188      20,671,896               0               0      23,734,368
    Mortgage servicing..................           4,250         238,000          38,250       1,606,500               0               0       1,844,500
    Loan originators....................             708          39,648           6,375         267,750               0               0         307,398
                                                                                                                                         ---------------
        Total closed-end credit.........  ..............  ..............  ..............  ..............  ..............  ..............     367,196,956
                                                                                                                                         ---------------
        Total Disclosures...............  ..............  ..............  ..............  ..............  ..............  ..............     553,563,761
                                                                                                                                         ===============
        Total Recordkeeping and           ..............  ..............  ..............  ..............  ..............  ..............     566,996,336
         Disclosures....................
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Request for Comment: Pursuant to Section 3506(c)(2)(A) of the PRA, 
the FTC invites comments on: (1) Whether the disclosure requirements 
are necessary, including whether the information will be practically 
useful; (2) the accuracy of our burden estimates, including whether the 
methodology and assumptions used are useful; (3) ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
(4) ways to minimize the burden of providing the required information 
to consumers.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before June 1, 2015. 
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 your 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 doesn't include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, don't 
include any ``[t]rade secret or any commercial or financial information 
. . . 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), 16 CFR 
4.10(a)(2). In particular, don't 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 your 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).\18\ Your comment will be kept confidential only if 
the FTC General Counsel, in his or her sole discretion, grants your 
request in accordance with the law and the public interest.
---------------------------------------------------------------------------

    \18\ 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. 
When 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

[[Page 17757]]

Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex J), or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW., 5th Floor, Suite 5610 (Annex J), Washington, DC 
20024. If possible, submit your paper comment to the Commission by 
courier or overnight service.
    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 June 1, 2015. 
For information on the Commission's privacy policy, including routine 
uses permitted by the Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.

David C. Shonka,
Principal Deputy General Counsel.
[FR Doc. 2015-07552 Filed 4-1-15; 8:45 am]
BILLING CODE 6750-01-P