82 FR 44875 - Agency Information Collection Requirements: Information Collection Renewal; Comment Request; Debt Cancellation Contracts and Debt Suspension Agreements

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency

Federal Register Volume 82, Issue 185 (September 26, 2017)

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). 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 the renewal of an information collection titled ``Debt Cancellation Contracts and Debt Suspension Agreements.''

[Federal Register Volume 82, Number 185 (Tuesday, September 26, 2017)]
[Notices]
[Pages 44875-44877]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20529]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Requirements: Information 
Collection Renewal; Comment Request; 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).
    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 the renewal of 
an information collection titled ``Debt Cancellation Contracts and Debt 
Suspension Agreements.''

DATES: You should submit written comments by: November 27, 2017.
    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, 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 or, for persons who are deaf or hard of hearing, TTY, (202) 649-
5597. Upon arrival, visitors will be required to present valid 
government-issued photo identification and 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 include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, 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, 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. Section 
3506(c)(2)(A) of title 44 (44 U.S.C. 3506(c)(2)(A)) requires federal 
agencies to provide a 60-day notice in the Federal Register concerning 
each proposed collection of information, including each proposed 
extension of an existing collection of information, before submitting 
the collection to OMB for approval. To comply with this requirement, 
the OCC is publishing notice of the renewal of the information 
collection set forth in this document.
    Title: Debt Cancellation Contracts and Debt Suspension Agreements.
    OMB Control No.: 1557-0224.
    Description: Twelve U.S.C. 24(Seventh) authorizes a national bank 
(bank) to enter into Debt Cancellation Contracts (DCCs) and Debt 
Suspension Agreements (DSAs). Part 37 requires 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 a bank first 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, and 
the regulation permits a bank to adjust the form and wording of its 
disclosures so long as it meets the applicable requirements. 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

[[Page 44876]]

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: (i) Summarizing the limitations; or (ii) advising the 
customer that a complete explanation of the eligibility requirements, 
conditions, and exclusions is available in the contract and identifying 
the paragraphs where the 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:
     Anti-tying (short and long form)--A bank must inform the 
customer that purchase of the product is optional and that neither the 
bank's decision whether to approve the loan nor the terms and 
conditions of the loan are conditioned on the purchase of a DCC or DSA.
     Explanation of debt suspension agreement (long form)--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.
     Amount of the fee (long form)--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: (i) Disclose that 
the periodic fee is based on the account balance multiplied by a unit 
cost and provide the unit cost; or (ii) disclose the formula used to 
compute the fee.
     Lump sum payment of fee (short and long form)--A bank must 
disclose, where appropriate, that a customer has the option to pay the 
fee in a single payment or in periodic payments and adding the fee to 
the amount borrowed will increase the cost of the contract. 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.
     Lump sum payment of fee with no refund (short and long 
form)--A bank must disclose that the customer has the option to choose 
a contract with or without a refund provision. This disclosure must 
also state that the prices of refund and no-refund products are likely 
to differ.
     Refund of fee paid in lump sum (short and long form)--If a 
bank permits a customer to pay the fee in a single payment and add the 
fee to the amount borrowed, the bank must disclose its cancellation 
policy. 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.
     Whether use of credit line is restricted (long form)--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.
     Termination of a DCC or DSA (long form)-- If termination 
is permitted during the life of the loan, a bank must include an 
explanation of the circumstances under which a customer or the bank may 
terminate the contract.
     Additional disclosures (short form)--A bank must inform 
consumers that it will provide additional information before the 
customer is required to pay for the product.
     Eligibility requirements, conditions, and exclusions 
(short and long form)--A bank must describe any material limitations 
relating to the DCC or DSA.

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 customer's affirmative election and acknowledgment to be 
made electronically.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit.
    Number of Respondents: 1,300.
    Total Annual Burden Hours: 31,200 hours.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are 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.


[[Page 44877]]


    Dated: September 20, 2017.
Karen Solomon,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2017-20529 Filed 9-25-17; 8:45 am]
 BILLING CODE 4810-33-P