83 FR 14273 - Agency Information Collection Activities; Proposed Collection; Comment Request; Extension
FEDERAL TRADE COMMISSION Federal Register Volume 83, Issue 64 (April 3, 2018)
Federal Register Volume 83, Issue 64 (April 3, 2018)
| Page Range | 14273-14281 | |
| FR Document | 2018-06669 |
[Federal Register Volume 83, Number 64 (Tuesday, April 3, 2018)] [Notices] [Pages 14273-14281] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-06669] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION Agency Information Collection Activities; Proposed Collection; Comment Request; Extension AGENCY: Federal Trade Commission (``FTC'' or ``Commission''). ACTION: Notice. ----------------------------------------------------------------------- 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 July 31, 2018. DATES: Comments must be filed by June 4, 2018. 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 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 Stephanie Rosenthal, 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 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, which were issued as final rules thereafter.\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\ --------------------------------------------------------------------------- \1\ 12 CFR 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); (81 FR 25323, Apr. 28, 2016) 12 CFR 1013 (Reg. M) (76 FR 78500, Dec. 19, 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR 1026 (Reg. Z) (76 FR 79768, Dec. 22, 2011) (81 FR 25323, Apr. 28, 2016). \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). --------------------------------------------------------------------------- As a result of the Dodd-Frank Act, the FTC and the CFPB generally 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.\4\ Because of the generally shared enforcement jurisdiction, the two agencies have divided the FTC's previously-cleared PRA burden [[Page 14274]] estimates between them,\5\ except that the FTC has assumed all of the burden estimates associated with motor vehicle dealers \6\ and now is also doing the same regarding estimated burden for state-chartered credit unions (both reflected in the burden summaries below as a ``carve-out''). The division of PRA burden hours not attributable to motor vehicle dealers and, as appropriate, to state-chartered credit unions, is reflected in the CFPB's PRA clearance requests to OMB, as well as in the FTC's burden estimates below. --------------------------------------------------------------------------- \4\ The FTC's enforcement authority includes state-chartered credit unions; other federal agencies also have various enforcement authority over credit unions. For example, for large credit unions (exceeding $10 billion in assets), the CFPB has certain authority. The National Credit Union Administration also has certain authority for state-chartered federally insured credit unions, and it additionally provides insurance for certain state-chartered credit unions through the National Credit Union Share Insurance Fund and examines credit unions for various purposes. There are approximately three state-chartered credit unions exceeding $10 billion in assets, and the CFPB assumes PRA burden for those entities. As of the third quarter of 2017, there were approximately the following number of state-chartered credit unions: 2,347 state-chartered credit unions-- 2,106 federally insured, 125 privately insured, and 116 in Puerto Rico insured by a quasi-governmental entity. Because of the difficulty in parsing out PRA burden for such entities in view of the overlapping authority, the FTC's figures include PRA burden for all state-chartered credit unions (rounded to 2,300). As noted above, the CFPB's figures as to state chartered credit unions include burden for those entities exceeding $10 billion in assets (approximately 3 entities). See generally Dodd-Frank Act, Sec. Sec. 1061, 1025, 1026. This attribution does not change actual enforcement authority. \5\ The CFPB also factors into its burden estimates respondents over which it has jurisdiction but the FTC does not. \6\ See Dodd-Frank Act Sec. 1029 (a), as limited by subsection (b) as to motor vehicle dealers. 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. --------------------------------------------------------------------------- Through 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.\7\ 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. --------------------------------------------------------------------------- \7\ See Dodd-Frank Act, Sec. 1029(a), -(c). --------------------------------------------------------------------------- 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.\8\ Covered entities, however, may incur some burden associated with ensuring that they do not prematurely dispose of relevant records (i.e., during the time span they must retain records under the applicable regulation). --------------------------------------------------------------------------- \8\ PRA ``burden'' does not include ``time, effort, and financial resources'' expended in the normal course of business, regardless of any regulatory requirement. See 5 CFR 1320.3(b)(2). --------------------------------------------------------------------------- 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, thus, generally, of much lesser magnitude than ``monitoring'' (or ``setup'') burden. The FTC's estimates of transaction time and volume are intended as averages. The population of affected motor vehicle dealers is one component of a much larger universe of such entities. The required disclosures do not impose PRA burden on some covered entities because they make those disclosures in their normal course of activities. For other covered entities that do not, their compliance burden will vary widely depending on the extent to which they have developed effective computer-based or electronic systems and procedures to communicate and document required disclosures.\9\ --------------------------------------------------------------------------- \9\ For example, large companies may use computer-based and/or electronic means to provide required disclosures, including issuing some disclosures en masse, e.g., notice 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. --------------------------------------------------------------------------- Calculating the burden associated with the four regulations' disclosure requirements is very difficult because of the highly diverse group of affected entities. The ``respondents'' included in the following burden calculations consist of, among others, credit and lease advertisers, creditors, owners (such as purchasers and assignees) of credit obligations, financial institutions, service providers, certain government agencies and others involved in delivering electronic fund transfers (``EFTs'') of government benefits, and lessors.\10\ The burden estimates represent FTC staff's best assessment, based on its knowledge and expertise relating to the financial services industry, of the average time to complete the aforementioned tasks associated with recordkeeping and disclosure. 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. --------------------------------------------------------------------------- \10\ The Commission generally does not have jurisdiction over banks, thrifts, and federal credit unions under the applicable regulations. --------------------------------------------------------------------------- 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 wages by the burden hours described above. The hourly wages 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.\11\ Further, the FTC cost estimates assume the following labor category apportionments, except where otherwise indicated below: Recordkeeping--10% skilled technical, 90% clerical; disclosure--10% managerial, 90% skilled technical. --------------------------------------------------------------------------- \11\ These inputs are based broadly on mean hourly data found within the ``Bureau of Labor Statistics, Economic News Release,'' March 31, 2017, Table 1, ``National employment and wage data from the Occupational Employment Statistics survey by occupation, May 2016.'' http://www.bls.gov/news.release/ocwage.t01.htm. --------------------------------------------------------------------------- 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 normal course of business. The following discussion and tables present FTC estimates under the PRA of recordkeeping and disclosure average [[Page 14275]] time and labor costs, excluding that which the FTC believes entities incur customarily in the normal course of business \12\ and information compiled and produced in response to FTC law enforcement investigations or prosecutions.\13\ --------------------------------------------------------------------------- \12\ See supra note 8 and accompanying text. \13\ See 5 CFR 1320.4(a) (excluding information collected in response to, among other things, a federal civil action or ``during the conduct of an administrative action, investigation, or audit involving an agency against specific individuals or entities''). FTC enforcement initiatives are based on diverse statutory and regulatory requirements. Some actions are brought in partnership with other federal and state agencies and encompass matters enforced by those agencies, not solely issues related to Regulations M and Z. Further, even where Regulations M and Z matters also are involved in FTC actions, or are in the broader initiative or enforcement sweep of automobile actions, the actions frequently include charges of unfair and/or deceptive practices under Section 5 of the FTC Act, 15 U.S.C. 45(a), and/or may involve warranty violations under the Magnuson Moss Warranty Act, 15 U.S.C. 2301-2312, and other issues not pertinent to this PRA submission. See, e.g., FTC, Press Release, FTC, Multiple Law Enforcement Partners Announce Crackdown on Deception, Fraud in Auto Sales, Financing and Leasing, Mar. 26, 2015, available at https://www.ftc.gov/news-events/press-releases/2015/03/ftc-multiple-law-enforcement-partners-announce-crackdown. The FTC also frequently issues business ``blog'' guidance with its enforcement initiatives to guide and facilitate compliance. See, e.g., Lesley Fair, ``FTC says car dealer took consumers for a ride-- again, FTC BUSINESS CENTER BLOG (Aug. 18, 2016), available at https://www.ftc.gov/news-events/blogs/business-blog/2016/08/ftc-says-car-dealer-took-consumers-ride-again; Lesley Fair, Operation Ruse Control: Six tips if cars are up your alley, FTC BUSINESS CENTER BLOG (Mar. 26, 2015), available at https://www.ftc.gov/news-events/blogs/business-blog/2015/03/operation-ruse-control-6-tips-if-cars-are-your-alley. --------------------------------------------------------------------------- 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 530,762 credit firms subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per firm for a total of 663,453 hours.\14\ 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 technical time) for approximately 2.6 million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 43,333 hours.\15\ Staff also estimates that recordkeeping of self-testing subject to the regulation would affect 1,500 firms, with an average annual burden of one hour (of skilled technical time) per firm, for a total of 1,500 hours, and that recordkeeping of any corrective action as a result of self-testing would affect 10% of them, i.e., 150 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a total of 600 hours.\16\ Keeping associated records of race/national origin, sex, age, and marital status requires an estimated one minute of skilled technical time. --------------------------------------------------------------------------- \14\ Section 1071 of the Dodd-Frank Act amended 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 it. The Commission will address PRA burden for its enforcement of the requirement after the CFPB and the Board have issued the associated final rules. \15\ Regulation B contains model forms that creditors may use to gather and retain the required information. \16\ In contrast to banks, for example, entities under FTC jurisdiction are not subject to audits by the FTC 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. --------------------------------------------------------------------------- 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.\17\ 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.\18\ --------------------------------------------------------------------------- \17\ While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the disclosure is provided by the CFPB, and is thus not a ``collection of information'' for PRA purposes. Accordingly, it is not included in burden estimates below. \18\ The disclosure may be provided orally or in writing. The model form provided by Regulation B assists creditors in providing the written disclosure. --------------------------------------------------------------------------- Burden Totals Recordkeeping: 708,886 hours (631,281 + 77,605 carve-out); $14,845,512 ($13,316,477 + $1,529,035 carve-out), associated labor costs. Disclosures: 1,088,912 hours (961,224 + 127,688 carve-out); $47,258,792 ($41,717,144 + $5,541,648 carve-out), associated labor costs. Regulation B--Disclosures--Burden Hours -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/Monitoring \1\ Transaction-related \2\ ---------------------------- ---------------------------- Average Total setup/ Number of Average Total Total burden Disclosures Respondents burden per monitoring transactions burden per transaction (hours) respondent burden transaction burden (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Credit history reporting............................ 133,553 .25 33,388 60,098,850 .25 250,412 283,800 Adverse action notices.............................. 530,762 .75 398,072 92,883,350 .25 387,014 785,086 Appraisal reports/written valuations................ 4,650 1 4,650 1,725,150 .50 14,376 19,026 Self-test disclosures............................... 1,500 .5 750 60,000 .25 250 1,000 --------------------------------------------------------------------------------------------------- Total........................................... ............ ............ ............ .............. ............ ............ 1,088,912 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations. These entities have decreased slightly, while credit history, adverse action and self-test entities have increased slightly, from prior FTC estimates, based on market changes. \2\ Applicable transactions have increased for appraisal reports; however, credit history, adverse action and self-test transactions have decreased, based on market changes. Taken together, the overall total disclosure burden has decreased. [[Page 14276]] Regulation B--Recordkeeping and Disclosures--Cost -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled Technical Clerical -------------------------------------------------------------------------------------- Total cost Required Task Time Cost ($56/ Time Time Cost ($17/ ($) (hours) hr.) (hours) Cost ($47/hr.) (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- General recordkeeping............................... 0 $0 66,345 $2,786,490 597,108 $10,150,836 $12,937,326 Other recordkeeping................................. 0 0 43,333 1,819,986 0 0 1,819,986 Recordkeeping of self-test.......................... 0 0 1,500 63,000 0 0 63,000 Recordkeeping of corrective action.................. 0 0 600 25,200 0 0 25,200 --------------------------------------------------------------------------------------------------- Total Recordkeeping............................. ............ ............ ............ .............. ............ ............ 14,845,512 -------------------------------------------------------------------------------------------------------------------------------------------------------- Disclosures: Credit history reporting............................ 28,380 1,589,280 255,420 10,727,640 0 0 12,316,920 Adverse action notices.............................. 78,509 4,396,504 706,577 29,676,234 0 0 34,072,738 Appraisal reports................................... 1,903 106,568 17,123 719,166 0 0 825,734 Self-test disclosure................................ 100 5,600 900 37,800 0 0 43,400 --------------------------------------------------------------------------------------------------- Total Disclosures............................... ............ ............ ............ .............. ............ ............ 47,258,792 rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr Total Recordkeeping and Disclosures......... ............ ............ ............ .............. ............ ............ 62,104,304 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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, prepaid account entities, etc. Staff estimates that Regulation E's recordkeeping requirements affect 251,053 firms offering EFT and certain other 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 251,053 hours. This represents a decrease from prior figures, reflecting a decrease in entities under FTC jurisdiction engaged in applicable activities. Burden Totals Recordkeeping: 251,053 hours (233,947 + 17,106 carve-out); $4,895,526 ($4,561,949 + $333,577 carve-out), associated labor costs. Disclosures: 7,184,903 hours (7,165,929 + 18,974 carve-out); $311,824,800 ($310,999,734 + $825,066 carve-out), associated labor costs. Regulation E--Disclosures--Burden Hours -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/Monitoring Transaction-related -------------------------------------------------------------------------------------- Total setup/ Average Total Total Disclosures \1\ Average monitoring Number of burden per transaction burden Respondents burden per burden Transactions transaction burden (hours) respondent (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Initial terms....................................... 27,300 .5 13,650 273,000 .02 91 13,741 Change in terms..................................... 8,550 .5 4,275 11,286,000 .02 3,762 8,037 Periodic statements................................. 27,300 .5 13,650 327,600,000 .02 109,200 122,850 Error resolution.................................... 27,300 .5 13,650 273,000 5 22,750 36,400 Transaction receipts................................ 27,300 .5 13,650 1,375,000,000 .02 458,333 471,983 Preauthorized transfers \2\......................... 258,553 .5 129,277 6,463,825 .25 26,933 156,210 Service provider notices............................ 20,000 .25 5,000 200,000 .25 833 5,833 ATM notices......................................... 125 .25 31 25,000,000 .25 104,167 104,198 Electronic check conversion \3\..................... 48,553 .5 24,277 728,295 .02 243 24,520 Overdraft services.................................. 15,000 .5 7,500 1,500,000 .02 500 8,000 Gift cards.......................................... 15,000 .5 7,500 750,000,000 .02 250,000 257,500 Remittance transfers: Disclosures..................................... 4,800 1.25 6,000 96,000,000 .9 1,440,000 1,446,000 Error resolution................................ 4,800 1.25 6,000 120,960,000 .9 1,814,400 1,820,400 Agent compliance................................ 4,800 1.25 6,000 96,000,000 .9 1,440,000 1,446,000 Prepaid accounts and gov't benefits: \4\ Disclosures..................................... 550 40x10 \5\ 220,000 2,750,000,000 .02 916,667 1,136,667 Disclosures--updates............................ 138 1x10 1,380 \6\ N/A ............ ............ 1,380 Access to account information................... 550 20x10 \7\ 110,000 1,100,000 .01 183 110,183 Error resolution................................ 300 4x4 4,800 275,000 2 9,167 13,967 Error resolution--followup \8\.................. ............ N/A ............ 1,380 30 690 690 Submission of agreements........................ 138 2x1 276 690 1 11 287 Updates to agreements \9\....................... ............ N/A ............ 690 5 57 57 --------------------------------------------------------------------------------------------------- Total....................................... ............ ............ ............ .............. ............ ............ 7,184,903 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Except as noted below, most respondent tallies in this table have decreased due to business shifts and other market changes that result in fewer entities under FTC jurisdiction. Accordingly, related transactions under FTC jurisdiction have also decreased. \2\ Preauthorized transfers rules apply to ``persons'' and entities. The number of respondents and transactions by such persons have increased, as these preauthorized transfers are used more commonly than previously. \3\ The total number of electronic check conversion respondents and transactions has decreased, particularly due to declining check usage. \4\ Prepaid accounts are now covered by Regulation E (and payroll cards are included in this area). Government benefit notices are included also in this area, although some separate requirements for government benefits remain; these factors are accounted for in the estimates. The number of government benefit entities also have declined given business shifts that have reduced the number of entities under FTC jurisdiction (and prepaid entities under FTC jurisdiction are also few in number). \5\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. [[Page 14277]] \6\ This reflects prepaid accounts' updates of additional fee type disclosures. Individual burden hours are listed first, followed by the number of programs. \7\ Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs. \8\ This pertains to prepaid accounts. \9\ This pertains to prepaid accounts' agreements. Regulation E--Recordkeeping and Disclosures--Cost -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled Technical Clerical -------------------------------------------------------------------------------------- Total cost Required task Cost ($56/ Cost ($17/ ($) Time (hours) hr.) Time (hours) Cost ($42/hr.) Time (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping....................................... 0 $0 25,105 $1,054,410 225,948 $3,841,116 $4,895,526 Disclosures: Initial terms................................... 1,374 76,944 12,367 519,414 0 0 596,358 Change in terms................................. 804 45,024 7,233 303,786 0 0 348,810 Periodic statements............................. 12,285 687,960 110,565 4,643,730 0 0 5,331,690 Error resolution................................ 3,640 203,840 32,760 1,375,920 0 0 1,579,760 Transaction receipts............................ 47,198 2,643,088 424,785 17,840,970 0 0 20,484,058 Preauthorized transfers......................... 15,621 874,776 140,589 5,904,738 0 0 6,779,514 Service provider notices........................ 583 32,648 5,250 220,500 0 0 253,148 ATM notices..................................... 10,420 583,520 93,778 3,938,676 0 0 4,522,196 Electronic check conversion..................... 2,452 137,312 22,068 926,856 0 0 1,064,168 Overdraft services.............................. 800 44,800 7,200 302,400 0 0 347,200 Gift cards...................................... 25,750 1,442,000 231,750 9,733,500 0 0 11,175,500 Remittance transfers: Disclosures..................................... 144,600 8,097,600 1,301,400 54,658,800 0 0 62,756,400 Error resolution................................ 182,040 10,194,240 1,638,360 68,811,120 0 0 79,005,360 Agent compliance................................ 144,600 8,097,600 1,301,400 54,658,800 0 0 62,756,400 Prepaid accounts and gov't. benefits: Disclosures..................................... 113,667 6,365,352 1,023,000 42,966,000 0 0 49,331,352 Disclosures--updates............................ 138 7,728 1,242 52,164 0 0 59,892 Access to account information................... 11,018 617,008 99,165 4,164,930 0 0 4,781,938 Error resolution................................ 1,397 78,232 12,570 527,940 0 0 606,172 Error resolution--followup...................... 69 3,864 621 26,082 0 0 29,946 Submission of agreements........................ 29 1,624 258 10,836 0 0 12,460 Updates to agreements........................... 6 336 51 2,142 0 0 2,478 --------------------------------------------------------------------------------------------------- Total Disclosures........................... ............ ............ ............ .............. ............ ............ 311,824,800 --------------------------------------------------------------------------------------------------- Total Recordkeeping and Disclosures..... ............ ............ ............ .............. ............ ............ 316,720,326 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 30,203 firms within the FTC's jurisdiction leasing products to consumers at an average annual burden of one hour per firm, for a total of 30,203 hours. Burden Totals \19\ --------------------------------------------------------------------------- \19\ 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. Based on industry information, the estimates for recordkeeping and disclosure costs assume the following: 90% managerial, and 10% skilled technical. As noted above, for purposes of PRA burden calculations for Regulations B, E, M, and Z, and given the different types of motor vehicle dealers, the FTC is including in its estimates burden for all of them. --------------------------------------------------------------------------- Recordkeeping: 30,203 hours (3,513 + 26,690 carve-out); $1,649,088 ($191,814 + $1,457,274 carve-out), associated labor costs. Disclosures: 71,750 hours (2,094 + 69,656 carve-out); $3,917,550 ($114,394 + $3,803,156 carve-out), associated labor costs. Regulation M--Disclosures--Burden Hours -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/Monitoring Transaction-related -------------------------------------------------------------------------------------- Average Total setup/ Average Total Total burden Disclosures burden per monitoring Number of burden per transaction (hours) Respondents respondent burden transactions transaction burden (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Motor Vehicle Leases \1\............................ 26,690 1 26,690 4,000,000 .50 33,333 60,023 Other Leases \2\.................................... 3,513 .50 1,757 60,000 .25 250 2,007 Advertising \3\..................................... 14,615 .50 7,308 578,960 .25 2,412 9,720 --------------------------------------------------------------------------------------------------- Total........................................... ............ ............ ............ .............. ............ ............ 71,750 -------------------------------------------------------------------------------------------------------------------------------------------------------- \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 with market changes, the number of vehicle lease transactions has remained about the same, compared to past FTC estimates. Leases up to $55,800 plus an annual adjustment are now covered. The resulting total burden has decreased. [[Page 14278]] \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; the number of such transactions has also declined, based on types of transactions offered that are covered by the CLA. Leases up to $55,800 plus an annual adjustment are now covered. The resulting total burden has decreased. \3\ Respondents for advertising have decreased as have lease advertisements, based on market changes, from past FTC estimates. The resulting total burden has decreased. Regulation M--Recordkeeping and Disclosures--Cost -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled Technical Clerical -------------------------------------------------------------------------------------- Total cost Required task Cost ($56/ Cost ($17/ ($) Time (hours) hr.) Time (hours) Cost ($42/hr.) Time (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping....................................... 27,183 $1,522,248 3,020 $126,840 0 0 $1,649,088 Disclosures:........................................ Motor Vehicle Leases................................ 54,021 3,025,176 6,002 252,084 0 0 3,277,260 Other Leases........................................ 1,806 101,136 201 8,442 0 0 109,578 Advertising......................................... 8,748 489,888 972 40,824 0 0 530,712 --------------------------------------------------------------------------------------------------- Total Disclosures............................... ............ ............ ............ .............. ............ ............ 3,917,550 --------------------------------------------------------------------------------------------------- Total Recordkeeping and Disclosures......... ............ ............ ............ .............. ............ ............ 5,566,638 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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. Additional requirements also exist in the mortgage area, including for high cost mortgages, higher-priced mortgage loans,\20\ ability to pay of mortgage consumers, mortgage servicing, loan originators, and certain integrated mortgage disclosures. --------------------------------------------------------------------------- \20\ 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 provided by the CFPB. As a result, it is not a ``collection of information'' for PRA purposes (see 5 CFR 1320.3(c)(2)). It is thus excluded from the burden estimates below. --------------------------------------------------------------------------- FTC staff estimates that Regulation Z's recordkeeping requirements affect approximately 430,762 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 3,650 entities (ability to pay), and 5 additional hours per entity for 4,500 entities (loan originators). Burden Totals Recordkeeping: 561,866 hours (484,961 + 76,905 carve-out); $10,956,397 ($9,456,749 + $1,499,648 carve-out), associated labor costs. Disclosures: 7,854,575 hours ($6,838,256 + 1,016,319 carve-out; $318,601,732 ($274,493,500 + $44,108,232 carve-out), associated labor costs. Regulation Z--Disclosures--Burden Hours -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/Monitoring Transaction-related ------------------------------------------------------------------------------------------------ Average burden Total burden Disclosures \1\ Average burden Total setup/ Number of per Total (hours) Respondents per respondent monitoring transactions transaction transaction (hours) burden (hours) (minutes) burden (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Open-end credit:........................ Initial terms........................... 23,650 .75 17,738 10,500,600 .375 65,629 83,367 Initial terms--prepaid accounts......... 3 \2\ 4x1 12 \3\ 3x78,667 .125 492 504 Rescission notices...................... 750 .5 375 3,750 .25 16 391 Subsequent disclosures.................. 4,650 .75 3,488 23,250,000 .188 72,850 76,338 Subsequent disclosures--prepaid accounts 3 \4\ 4x1 12 \5\ 3x78,667 .0625 246 258 Periodic statements..................... 23,650 .75 17,738 788,325,450 .0938 1,232,415 1,250,153 Periodic statements--prepaid accounts... 3 \6\ 40x1 120 \7\ 3x944,000 .03125 1,475 1,595 Error resolution........................ 23,650 .75 17,738 2,104,850 6 210,485 228,223 Error resolution--prepaid accounts 3 \8\ 4x1 12 \9\ 3x1,180 15 885 897 followup............................... Credit and charge card accounts......... 10,250 .75 7,688 5,125,000 .375 32,031 39,719 [[Page 14279]] Credit and charge card accounts--prepaid 3 \10\ 4x1 12 \11\ 3x12 240 144 156 accounts............................... Settlement of estate debts.............. 23,650 .75 17,738 496,650 .375 3,104 20,842 Special credit card requirements........ 10,250 .75 7,688 5,125,000 .375 32,031 39,719 Home equity lines of credit............. 750 .5 375 5,250 .25 22 397 Home equity lines of credit high-cost 250 2 500 1,500 2 50 550 mortgages.............................. College student credit card marketing-- 1,350 .5 675 81,000 .25 338 1,013 ed. institutions....................... College student credit card marketing-- 150 .75 113 4,500 .75 56 169 card issuer reports.................... Posting and reporting of credit card 10,250 .75 7,688 5,125,000 .375 32,031 39,719 agreements............................. Posting and reporting of prepaid account 3 \12\ .75x1 2 \13\ 3x5 2.5 1 3 agreements............................. Advertising............................. 38,650 .75 28,988 115,950 .75 1,449 30,437 Advertising--prepaid accounts........... 3 \14\ 20x1 60 N/A .............. .............. 60 Advertising--prepaid accounts Updates... 3 \15\ 0.2x5 3 N/A .............. .............. 3 Sale, transfer, or assignment of 500 .5 250 500,000 .25 2,083 2,333 mortgages.............................. Appraiser misconduct reporting.......... 301,150 .75 225,863 6,023,000 .375 37,644 263,507 Mortgage servicing \16\................. 1,500 .75 1,125 150,000 .5 1,250 2,375 Loan originators........................ 2,250 2 4,500 22,500 5 1,875 6,375 Closed-end credit:...................... Credit disclosures...................... 280,762 .75 210,572 112,304,800 2.25 4,211,430 4,422,002 Rescission notices...................... 3,650 .5 1,825 5,475,000 1 91,250 93,075 Redisclosures........................... 101,150 .5 50,575 505,750 2.25 18,966 69,541 Integrated mortgage disclosures......... 3,650 10 36,500 10,950,000 3.5 638,750 675,250 Variable rate mortgages................. 3,650 1 3,650 365,000 1.75 10,646 14,296 High cost mortgages..................... 1,750 1 1,750 43,750 2 1,458 3,208 Higher priced mortgages................. 1,750 1 1,750 14,000 2 467 2,217 Reverse mortgages....................... 3,025 .5 1,513 15,125 1 252 1,765 Advertising............................. 205,762 .5 102,881 2,057,620 1 34,294 137,175 Private education loans................. 75 .5 38 30,000 1.5 750 788 Sale, transfer, or assignment of 48,850 .5 24,425 2,442,500 .25 10,177 34,602 mortgages.............................. Ability to pay/qualified mortgage....... 3,650 .75 2,738 0 0 0 2,738 Appraiser misconduct reporting.......... 301,150 .75 225,863 6,023,000 .375 37,644 263,507 Mortgage servicing \17\................. 3,650 1.5 5,475 730,000 2.75 33,458 38,933 Loan originators........................ 2,250 2 4,500 22,500 5 1,875 6,375 --------------------------------------------------------------------------------------------------------------- Total open-end credit............... .............. .............. .............. .............. .............. .............. 2,089,103 --------------------------------------------------------------------------------------------------------------- Total closed-end credit............. .............. .............. .............. .............. .............. .............. 5,765,472 --------------------------------------------------------------------------------------------------------------- [[Page 14280]] Total credit.................... .............. .............. .............. .............. .............. .............. 7,854,575 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $55,800 plus an annual adjustment (except that real estate credit and private education loans are covered regardless of amount). In most instances noted below, business shifts and other market changes have reduced estimated PRA burden. In a few instances noted below, changes to Regulation Z have increased estimated PRA burden. This is particularly due to the inclusion of burden for prepaid accounts with certain credit aspects, as applicable, due to new rules. However, the overall effect of these competing factors, combined with the FTC sharing with the CFPB estimated PRA burden (for all but motor vehicle dealers and certain credit unions) yields a net decrease from the FTC's prior reported estimate for open-end credit and for closed-end credit. \2\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \3\ This figure lists the number of entities followed by the number of responses or programs each. \4\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \5\ This figure lists the number of entities followed by the number of responses or programs each. \6\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \7\ This figure lists the number of entities followed by the number of responses or programs each. \8\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \9\ This figure lists the number of entities followed by the number of responses or programs each. \10\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \11\ This figure lists the number of entities followed by the number of responses or programs each. \12\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \13\ This figure lists the number of entities followed by the number of responses or programs each. \14\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \15\ Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs. \16\ Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, which in some instances can affect open-end credit, increasing burden. However, the number of entities and transactions under FTC jurisdiction have decreased, reducing overall burden compared to prior FTC estimates. \17\ Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, and periodic statement requirements including for consumers in bankruptcy, among other things, affecting closed-end credit, increasing burden. However, the number of entities and transactions under FTC jurisdiction have decreased, reducing overall burden compared to prior FTC estimates. Regulation Z--Recordkeeping and Disclosures--Cost -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled Technical Clerical -------------------------------------------------------------------------------------- Total cost Required task Time Cost ($56/ Time Cost ($42/ Time Cost ($17/ ($) (hours) hr.) (hours) hr.) (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping....................................... 0 $0 56,187 $2,359,854 505,679 $8,596,543 $10,956,397 Open-end credit Disclosures:........................ Initial terms....................................... 8,337 466,872 75,030 3,151,260 0 0 3,618,132 Initial terms--prepaid accounts..................... 50 2,800 454 19,068 0 0 21,868 Rescission notices.................................. 39 2,184 352 14,784 0 0 16,968 Subsequent disclosures.............................. 7,634 427,504 68,704 2,885,568 0 0 3,313,072 Subsequent disclosures--prepaid accounts............ 26 1.456 232 9,744 0 0 11,200 Periodic statements................................. 125,015 7,000,840 1,125,138 47,255,796 0 0 54,256,636 Periodic statements--prepaid accounts............... 159 8,904 1436 60,312 0 0 69.216 Error resolution.................................... 22,822 1,278,032 205,401 8,626,842 0 0 9,904,874 Error resolution--prepaid accounts followup......... 90 5,040 807 33.894 0 0 38,934 Credit and charge card accounts..................... 3,972 222,432 35,747 1,501,374 0 0 1,723,806 Credit and charge card accounts-prepaid accounts.... 16 896 140 5,880 0 0 6,776 Settlement of estate debts.......................... 2,084 116,704 18,758 787,836 0 0 904,540 Special credit card requirements.................... 3,972 222,432 35,747 1,501,374 0 0 1,723,806 Home equity lines of credit......................... 40 2,240 357 14,994 0 0 17,234 Home equity lines of credit--high cost mortgages.... 55 3,080 495 20,790 0 0 23,870 College student credit card marketing--ed 101 5,656 912 38,304 0 0 43,960 institutions....................................... College student credit card marketing--card issuer 17 952 152 6,384 0 0 7,336 reports............................................ Posting and reporting of credit card agreements..... 3,972 222,432 35,747 1,501,374 0 0 1,723,806 Posting and reporting of prepaid accounts........... 1 56 2 84 0 0 140 Advertising......................................... 3,044 170,464 27,393 1,150,506 0 0 1,320,970 Advertising--prepaid accounts....................... 6 336 54 2,268 0 0 2,604 Advertising--prepaid accounts Updates............... 1 56 2 84 0 0 140 Sale, transfer, or assignment of mortgages.......... 233 13,048 2,100 88,200 0 0 101,248 Appraiser misconduct reporting...................... 26,351 1,475,656 237,156 9,960,552 0 0 11,436,208 Mortgage servicing.................................. 238 13,328 2,137 89,754 0 0 103,082 Loan originators.................................... 638 35,728 5,737 240,954 0 0 276,682 Total open-end credit............................... ............ ............ ............ .............. ............ ............ 90,667,108 Closed-end credit Disclosures:...................... Credit disclosures.................................. 442,200 2,476,300 3,979,802 167,151,684 0 0 169,627,984 Rescission notices.................................. 9,308 521,248 83,767 3,518,214 0 0 4,039,462 Redisclosures....................................... 6,954 389,424 62,587 2,628,654 0 0 3,018,078 Integrated mortgage disclosures..................... 67,525 3,781,400 607,725 25,524,450 0 0 29,305,850 Variable rate mortgages............................. 1,430 80,080 12,866 540,372 0 0 620,452 High cost mortgages................................. 321 17,976 2,887 121,254 0 0 139,230 Higher priced mortgages............................. 222 12,432 1,995 83,790 0 0 96,222 [[Page 14281]] Reverse mortgages................................... 177 9,912 1,588 66,696 0 0 76,608 Advertising......................................... 13,718 768,208 123,457 5,185,194 0 0 5,953,402 Private education loans............................. 79 4,424 709 29,778 0 0 34,202 Sale, transfer, or assignment of mortgages.......... 3,460 193,760 31,142 1,307,964 0 0 1,501,724 Ability to pay/qualified mortgage................... 274 15,344 2,464 103,488 0 0 118,832 Appraiser misconduct reporting...................... 26,351 1,475,656 237,156 9,960,552 0 0 11,436,208 Mortgage servicing.................................. 3,893 218,008 35,040 1,471,680 0 0 1,689,688 Loan originators.................................... 638 35,728 5,737 240,954 0 0 276,682 --------------------------------------------------------------------------------------------------- Total closed-end credit......................... ............ ............ ............ .............. ............ ............ 227,934,624 --------------------------------------------------------------------------------------------------- Total Disclosures............................... ............ ............ ............ .............. ............ ............ 318,601,732 --------------------------------------------------------------------------------------------------- Total Recordkeeping and Disclosures......... ............ ............ ............ .............. ............ ............ 329,558,129 -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 FTC to consider your comment, we must receive it on or before June 4, 2018. 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 FTC website, at https://www.ftc.gov/policy/public-comments. Postal mail addressed to the Commission is subject to delay due to heightened security screening. As a result, we encourage you to submit your comments online. To make sure that the Commission considers your online comment, you must file it at https://ftcpublic.commentworks.com/ftc/RegsBEMZpra, by following the instructions on the web-based form. If this Notice appears at https://www.regulations.gov/#!home, you also may file a comment through that website. If you file your comment on paper, write ``Regs BEMZ, PRA Comments, P084812'' on your comment and on the envelope, and mail it to the following address: Federal Trade 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. Because your comment will be placed on the publicly accessible FTC website at https://www.ftc.gov/, you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security number; date of birth; driver's license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any ``trade secret or any commercial or financial information which . . . is privileged or confidential''--as provided by 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)--including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled ``Confidential,'' and must comply with FTC Rule 4.9(c). 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). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on the public FTC website--as legally required by FTC Rule 4.9(b)--we cannot redact or remove your comment from the FTC website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request. Visit the FTC website to read this Notice. 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 4, 2018. For information on the Commission's privacy policy, including routine uses permitted by the Privacy Act, see https://www.ftc.gov/site-information/privacy-policy. David C. Shonka, Acting General Counsel. [FR Doc. 2018-06669 Filed 4-2-18; 8:45 am] BILLING CODE 6750-01-P
![Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Notices 14273
indicated. The applications will also be ADDRESSES: Interested parties may file a Financial Protection Bureau (CFPB) on
available for inspection at the offices of comment online or on paper, by July 21, 2011 (‘‘transfer date’’). To
the Board of Governors. Interested following the instructions in the implement this transferred authority,
persons may express their views in Request for Comment part of the the CFPB published interim final rules
writing on the standards enumerated in SUPPLEMENTARY INFORMATION section for new regulations in 12 CFR part 1002
the BHC Act (12 U.S.C. 1842(c)). If the below. Write ‘‘Regs BEMZ, PRA (Regulation B), 12 CFR part 1005
proposal also involves the acquisition of Comments, P084812’’ on your comment (Regulation E), 12 CFR part 1013
a nonbanking company, the review also and file your comment online at https:// (Regulation M), and 12 CFR 1026
includes whether the acquisition of the ftcpublic.commentworks.com/ftc/ (Regulation Z) for those entities under
nonbanking company complies with the RegsBEMZpra by following the its rulemaking jurisdiction, which were
standards in section 4 of the BHC Act instructions on the web-based form. If issued as final rules thereafter.1
(12 U.S.C. 1843). Unless otherwise you prefer to file your comment on Although the Dodd-Frank Act
noted, nonbanking activities will be paper, mail your comment to the
transferred most rulemaking authority
conducted throughout the United States. following address: Federal Trade
under ECOA, EFTA, CLA, and TILA to
Unless otherwise noted, comments Commission, Office of the Secretary,
regarding each of these applications 600 Pennsylvania Avenue NW, Suite the CFPB, the Board retained
must be received at the Reserve Bank CC–5610 (Annex J), Washington, DC rulemaking authority for certain motor
indicated or the offices of the Board of 20580, or deliver your comment to the vehicle dealers 2 under all of these
Governors not later than May 1, 2018. following address: Federal Trade statutes and also for certain interchange-
A. Federal Reserve Bank of Atlanta Commission, Office of the Secretary, related requirements under EFTA.3
(Kathryn Haney, Director of Constitution Center, 400 7th Street SW, As a result of the Dodd-Frank Act, the
Applications) 1000 Peachtree Street NE, 5th Floor, Suite 5610 (Annex J), FTC and the CFPB generally share the
Atlanta, Georgia 30309. Comments can Washington, DC 20024. authority to enforce Regulations B, E, M,
also be sent electronically to FOR FURTHER INFORMATION CONTACT: and Z for entities for which the FTC had
Applications.Comments@atl.frb.org: Requests for additional information or enforcement authority before the Act,
1. Henderson Bancshares, Inc., Troy, copies of the proposed information except for certain motor vehicle
Alabama; to merge with First Brundidge requirements should be addressed to dealers.4 Because of the generally
Bancshares, Inc., and thereby directly Carole Reynolds or Stephanie shared enforcement jurisdiction, the two
acquire First National Bank of Rosenthal, Attorneys, Division of agencies have divided the FTC’s
Brundidge, both of Brundidge, Alabama. Financial Practices, Bureau of Consumer previously-cleared PRA burden
In connection with this proposal, Protection, Federal Trade Commission,
Henderson’s parent company, Trust 600 Pennsylvania Ave. NW, 1 12 CFR 1002 (Reg. B) (76 FR 79442, Dec. 21,
Number 3 under the Will of Charles Washington, DC 20580, (202) 326–3224. 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR 1005
Henderson, Troy, Alabama, will SUPPLEMENTARY INFORMATION: The four
(Reg. E) (76 FR 81020, Dec. 27, 2011); (81 FR 25323,
indirectly acquire First Brundidge Apr. 28, 2016) 12 CFR 1013 (Reg. M) (76 FR 78500,
regulations covered by this notice are: Dec. 19, 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR
Bancshares, Inc. and First National Bank (1) Regulations promulgated under 1026 (Reg. Z) (76 FR 79768, Dec. 22, 2011) (81 FR
of Brundidge both of Brundidge, the Equal Credit Opportunity Act, 15 25323, Apr. 28, 2016).
Alabama. U.S.C. 1691 et seq. (‘‘ECOA’’) 2 Generally, these are dealers ‘‘predominantly
engaged in the sale and servicing of motor vehicles,
Board of Governors of the Federal Reserve (‘‘Regulation B’’) (OMB Control Number: the leasing and servicing of motor vehicles, or
System, March 29, 2018. 3084–0087); both.’’ See Dodd-Frank Act, § 1029(a), –(c).
Ann Misback, (2) Regulations promulgated under 3 See Dodd-Frank Act, § 1075 (these requirements
Secretary of the Board. the Electronic Fund Transfer Act, 15 are implemented through Board Regulation II, 12
U.S.C. 1693 et seq. (‘‘EFTA’’) CFR 235, rather than EFTA’s implementing
[FR Doc. 2018–06731 Filed 4–2–18; 8:45 am]
Regulation E).
BILLING CODE P
(‘‘Regulation E’’) (OMB Control Number: 4 The FTC’s enforcement authority includes state-
3084–0085); chartered credit unions; other federal agencies also
(3) Regulations promulgated under have various enforcement authority over credit
FEDERAL TRADE COMMISSION the Consumer Leasing Act, 15 U.S.C. unions. For example, for large credit unions
1667 et seq. (‘‘CLA’’) (‘‘Regulation M’’) (exceeding $10 billion in assets), the CFPB has
certain authority. The National Credit Union
Agency Information Collection (OMB Control Number: 3084–0086); and Administration also has certain authority for state-
Activities; Proposed Collection; (4) Regulations promulgated under chartered federally insured credit unions, and it
Comment Request; Extension the Truth-In-Lending Act, 15 U.S.C. additionally provides insurance for certain state-
1601 et seq. (‘‘TILA’’) (‘‘Regulation Z’’) chartered credit unions through the National Credit
AGENCY: Federal Trade Commission Union Share Insurance Fund and examines credit
(OMB Control Number: 3084–0088). unions for various purposes. There are
(‘‘FTC’’ or ‘‘Commission’’). The FTC enforces these statutes as to approximately three state-chartered credit unions
ACTION: Notice. all businesses engaged in conduct these exceeding $10 billion in assets, and the CFPB
laws cover unless these businesses assumes PRA burden for those entities. As of the
SUMMARY: The FTC intends to ask the (such as federally chartered or insured third quarter of 2017, there were approximately the
Office of Management and Budget following number of state-chartered credit unions:
depository institutions) are subject to 2,347 state-chartered credit unions—2,106 federally
(‘‘OMB’’) to extend for an additional the regulatory authority of another insured, 125 privately insured, and 116 in Puerto
three years the current Paperwork federal agency. Rico insured by a quasi-governmental entity.
Reduction Act (‘‘PRA’’) clearance for the Under the Dodd-Frank Wall Street Because of the difficulty in parsing out PRA burden
for such entities in view of the overlapping
amozie on DSK30RV082PROD with NOTICES
FTC’s enforcement of the information Reform and Consumer Protection Act authority, the FTC’s figures include PRA burden for
collection requirements in four (‘‘Dodd-Frank Act’’), Public Law 111– all state-chartered credit unions (rounded to 2,300).
consumer financial regulations enforced 203, 124 Stat. 1376 (2010), almost all As noted above, the CFPB’s figures as to state
by the Commission. Those clearances rulemaking authority for the ECOA, chartered credit unions include burden for those
expire on July 31, 2018. entities exceeding $10 billion in assets
EFTA, CLA, and TILA transferred from (approximately 3 entities). See generally Dodd-
DATES: Comments must be filed by June the Board of Governors of the Federal Frank Act, §§ 1061, 1025, 1026. This attribution
4, 2018. Reserve System (Board) to the Consumer does not change actual enforcement authority.
VerDate Sep<11>2014 16:47 Apr 02, 2018 Jkt 244001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 E:\FR\FM\03APN1.SGM 03APN1](https://thefederalregister.org/doc/83_FR_14337/page/1.svg)
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REGULATION Z—RECORDKEEPING AND DISCLOSURES—COST—Continued
Managerial Skilled Technical Clerical
Total cost
Required task Time Cost Time Cost Time Cost ($)
(hours) ($56/hr.) (hours) ($42/hr.) (hours) ($17/hr.)
Reverse mortgages ................................................... 177 9,912 1,588 66,696 0 0 76,608
Advertising ................................................................. 13,718 768,208 123,457 5,185,194 0 0 5,953,402
Private education loans ............................................. 79 4,424 709 29,778 0 0 34,202
Sale, transfer, or assignment of mortgages ............. 3,460 193,760 31,142 1,307,964 0 0 1,501,724
Ability to pay/qualified mortgage ............................... 274 15,344 2,464 103,488 0 0 118,832
Appraiser misconduct reporting ................................ 26,351 1,475,656 237,156 9,960,552 0 0 11,436,208
Mortgage servicing .................................................... 3,893 218,008 35,040 1,471,680 0 0 1,689,688
Loan originators ........................................................ 638 35,728 5,737 240,954 0 0 276,682
Total closed-end credit ...................................... ...................... ...................... ...................... ........................ ...................... ...................... 227,934,624
Total Disclosures ............................................... ...................... ...................... ...................... ........................ ...................... ...................... 318,601,732
Total Recordkeeping and Disclosures ........ ...................... ...................... ...................... ........................ ...................... ...................... 329,558,129
Request for Comment: Pursuant to Secretary, Constitution Center, 400 7th record. See FTC Rule 4.9(c). Your
Section 3506(c)(2)(A) of the PRA, the Street SW, 5th Floor, Suite 5610 (Annex comment will be kept confidential only
FTC invites comments on: (1) Whether J), Washington, DC 20024. If possible, if the General Counsel grants your
the disclosure requirements are submit your paper comment to the request in accordance with the law and
necessary, including whether the Commission by courier or overnight the public interest. Once your comment
information will be practically useful; service. has been posted on the public FTC
(2) the accuracy of our burden estimates, Because your comment will be placed website—as legally required by FTC
including whether the methodology and on the publicly accessible FTC website Rule 4.9(b)—we cannot redact or
assumptions used are useful; (3) ways to at https://www.ftc.gov/, you are solely remove your comment from the FTC
enhance the quality, utility, and clarity responsible for making sure that your website, unless you submit a
of the information to be collected; and comment does not include any sensitive confidentiality request that meets the
(4) ways to minimize the burden of or confidential information. In requirements for such treatment under
providing the required information to particular, your comment should not FTC Rule 4.9(c), and the General
consumers. include any sensitive personal Counsel grants that request.
You can file a comment online or on information, such as your or anyone Visit the FTC website to read this
paper. For the FTC to consider your else’s Social Security number; date of Notice. The FTC Act and other laws that
comment, we must receive it on or birth; driver’s license number or other the Commission administers permit the
before June 4, 2018. Write ‘‘Regs BEMZ, state identification number, or foreign collection of public comments to
PRA Comments, P084812’’ on your country equivalent; passport number; consider and use in this proceeding as
comment. Your comment—including financial account number; or credit or appropriate. The Commission will
your name and your state—will be debit card number. You are also solely consider all timely and responsive
placed on the public record of this responsible for making sure that your public comments that it receives on or
proceeding, including, to the extent before June 4, 2018. For information on
comment does not include any sensitive
practicable, on the public FTC website, the Commission’s privacy policy,
health information, such as medical
at https://www.ftc.gov/policy/public- including routine uses permitted by the
records or other individually
comments. Privacy Act, see https://www.ftc.gov/
Postal mail addressed to the identifiable health information. In
site-information/privacy-policy.
Commission is subject to delay due to addition, your comment should not
heightened security screening. As a include any ‘‘trade secret or any David C. Shonka,
result, we encourage you to submit your commercial or financial information Acting General Counsel.
comments online. To make sure that the which . . . is privileged or [FR Doc. 2018–06669 Filed 4–2–18; 8:45 am]
Commission considers your online confidential’’—as provided by Section BILLING CODE 6750–01–P
comment, you must file it at https:// 6(f) of the FTC Act, 15 U.S.C. 46(f), and
ftcpublic.commentworks.com/ftc/ FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—
RegsBEMZpra, by following the including in particular competitively DEPARTMENT OF HEALTH AND
instructions on the web-based form. If sensitive information such as costs, HUMAN SERVICES
this Notice appears at https:// sales statistics, inventories, formulas,
www.regulations.gov/#!home, you also patterns, devices, manufacturing Administration for Children and
may file a comment through that processes, or customer names. Families
website. Comments containing material for
If you file your comment on paper, which confidential treatment is Submission for OMB Review;
write ‘‘Regs BEMZ, PRA Comments, requested must be filed in paper form, Comment Request
P084812’’ on your comment and on the must be clearly labeled ‘‘Confidential,’’ Title: Study of Coaching Practices in
amozie on DSK30RV082PROD with NOTICES
envelope, and mail it to the following and must comply with FTC Rule 4.9(c). Early Care and Education Settings
address: Federal Trade Commission, In particular, the written request for (SCOPE).
Office of the Secretary, 600 confidential treatment that accompanies OMB No.: New Collection.
Pennsylvania Avenue NW, Suite CC– the comment must include the factual Description: The Administration for
5610 (Annex J), or deliver your and legal basis for the request, and must Children and Families (ACF) at the U.S.
comment to the following address: identify the specific portions of the Department of Health and Human
Federal Trade Commission, Office of the comment to be withheld from the public Services (HHS) seeks approval to collect
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Document Created: 2018-04-03 00:50:38
Document Modified: 2018-04-03 00:50:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Comments must be filed by June 4, 2018. | |
| Contact | Requests for additional information or | |
| FR Citation | 83 FR 14273 |
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