[Federal Register Volume 64, Number 245 (Wednesday, December 22, 1999)] [Notices] [Pages 71787-71792] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 99-33206] ======================================================================= ----------------------------------------------------------------------- FEDERAL TRADE COMMISSION Agency Information Collection Activities; Submission for OMB Review; Comment Request AGENCY: Federal Trade Commission. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The Federal Trade Commission (FTC) has submitted to the Office of Management and Budget (OMB) for review under the Paperwork Reduction Act (PRA) information collection requirements associated with four current rules enforced by the Commission. Current clearances for this information collection expire on December 31, 1999. The FTC is requesting that OMB extend the paperwork clearances through December 31, 2002. DATES: Comments must be filed by January 21, 2000. ADDRESSES: Send written comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10202, Washington, DC 20503, ATTN: Desk Officer for the Federal Trade Commission, and to Carole Reynolds, Attorney, Division of Financial Practices, Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 20580, 202-326-3230. All comments should be identified as responding to this notice. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the proposed information requirements should be addressed to Carole Reynolds at the address listed above. SUPPLEMENTARY INFORMATION: The FTC has submitted a request to OMB to extend the existing clearances to collect information associated with the four rules described below. A Federal Register Notice with a 60-day comment period soliciting comments on this collection of information was published on October 15, 1999 (64 FR 55937). No comments were received. The four rules covered by this notice are: (1) Regulations promulgated under the Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq. (``ECOA'') (``Regulation B'') (Control Number: 3084-0087); (2) Regulations promulgated under The Electronic Fund Transfer Act, 15 U.S.C. 1693 et seq. (``EFTA'') (``Regulation E'') (Control Number: 3084-0085); (3) Regulations promulgated under The Consumer Leasing Act, 15 U.S.C. 1667 et seq., (``CLA'') (``Regulation M'') (Control Number: 3084-0086) (4) Regulations promulgated under The Truth-In-Lending Act, 15 U.S.C. 1601 et seq. (``TILA'') (``Regulation Z'') (Control Number: 3084-0088) Each of these four rules impose certain PRA recordkeeping and disclosure requirements associated with providing credit or with other financial transactions. All of these rules require covered entities to keep certain records. Staff believes that many of these entities would likely retain these records in the normal course of business even absent the recordkeeping requirement in the rules.\1\ There is, however, some burden associated with ensuring that covered entities do not prematurely dispose of relevant records during the period of time required by the applicable rule. --------------------------------------------------------------------------- \1\ PRA ``burden'' does not include effort expended in the ordinary course of business, regardless of any regulatory requirement. 5 CFR 1320.3(b)(2). --------------------------------------------------------------------------- Disclosure requirements involve both set-up and monitoring costs as well as certain transaction-specific costs. ``Set-up'' burden, incurred by new entrants only, includes identifying the applicable disclosure requirements, determining compliance obligations, and designing and developing compliance systems and procedures. ``Monitoring'' burden, incurred by all covered entities, includes reviewing revisions to regulatory requirements, revising compliance systems and procedures as necessary, and monitoring the ongoing operation of systems and procedures to ensure continued compliance. ``Transaction-related'' burden refers to the effort associated with providing the various required disclosures in individual transactions. While this burden varies with the number of transactions, the figures shown for transaction-related burden in the tables that follow are estimated averages. The actual range of compliance burden experienced by covered entities, and reflected in those averages, varies widely. Depending on the extent to which covered entities have developed automated systems and procedures for providing the required disclosures, and the efficacy of those systems and procedures, some entities may have little or no such burden, while others incur a higher burden.\2\ --------------------------------------------------------------------------- \2\ For example, large retailers may use automated means to provide required disclosures, such as issuing, en masse, notices of changes in terms. Smaller retailers and certain types of creditors may have less automated compliance systems, and thus may issue disclosures on an individual transaction basis, resulting in higher burden. --------------------------------------------------------------------------- Calculating the burden associated with the four regulations' disclosure requirements is extremely difficult because of the highly diverse group of affected entities. The ``respondents'' included in the following burden calculations consist of all types of credit and lease advertisers, creditors (e.g., finance companies, mortgage companies, retailers, Internet businesses), financial institution (including new electronic commerce entities), service providers, certain government agencies and others involved in delivering electronic fund transfers of government benefits, and lessors (e.g., auto dealers, independent leasing companies, manufacturers' captive finance companies, furniture companies, computer dealers). The burden estimates represent staff's best assessment, based on its knowledge and expertise relating to the financial services industry. To derive these estimates, 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) types of electronic fund transfers (EFTs) used; (4) types and occurrences of adverse actions; (5) types of appraisal reports utilized; and (6) automation with regard to compliance operations. The estimated PRA burden associated with these rules, attributable to the Commission, is less today than in the past. Staff believes that as automation and expanded quality control become more pervasive in the financial services industry entities are able to comply more efficiently. The cost estimates shown below relate solely to labor costs. The applicable PRA requirements impose minimal [[Page 71788]] capital or other non-labor costs, as affected entities generally have the necessary equipment for other business purposes. Similarly, staff estimates that compliance with these rules entails minimal printing and copying costs beyond that associated with documenting financial transactions in the ordinary course of business. The burden estimates shown below include the time necessary to train staff in compliance with the regulations. The following paragraphs discuss each of these rules, their particular PRA requirements, and staff's best estimates of the related hour and cost burdens. I. Regulation B The ECOA prohibits discrimination in the extension of credit. Regulation B, 12 CFR part 202, promulgated by the Board of Governors of the Federal Reserve System, establishes both recordkeeping and disclosure requirements to assist consumers in understanding their rights under the ECOA and to assist in detecting unlawful discrimination. The FTC enforces the ECOA as to all creditors except those that are subject to the regulatory authority of another federal agency (such as federally chartered or insured depository institutions). Estimated annual hours burden: 2,560,000 hours, rounded (1,150,000 recordkeeping hours + 1,409,499 disclosure hours). Recordkeeping: FTC staff estimates that Regulation B's general recordkeeping requirements affect 1,000,000 credit firms subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 1,000,000 hours. Staff also estimates that the requirement that creditors monitor information about race/national origin, sex, age, and marital status imposes a maximum burden of one minute each \3\ for approximately nine million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 150,000 hours. The total estimated recordkeeping burden is 1,150,000 hours. --------------------------------------------------------------------------- \3\ Regulation B contains a model form that creditors may use to gather and retain the requirement information. --------------------------------------------------------------------------- Disclosure: Regulation B requires that creditors (i.e., entities that regularly participate in the decision whether or not to extend credit under Regulation B) provide notices whenever they take adverse action. The Regulations also requires entities that extend various types of mortgage credit to provide a copy of the appraisal report and to notify applicants of their right to a copy of the report. As noted above, Regulation B applies to a highly diverse group of entities, including retailers, mortgage lenders, mortgage brokers, finance companies, Internet businesses, and others. In some instances where covered entities may make certain required disclosures in the ordinary course of business, the Regulation imposes no burden. In addition, some entities have developed highly automated means of providing the required disclosures, while others rely on methods requiring more manual effort. Thus, the following burden estimates are averages based on staff's best estimate of the burden incurred over an extremely board spectrum of covered entities. -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/monitoring\1\ average Transaction-related \2\ -------------------------------------------------------------------------------------------- Total Disclosure Average setup/ Average Total Total Respondents burden per monitoring Number of burden per transaction burden respondent burden transactions transaction burden (hours) (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Adverse action notices..................................... 1,000,000 .5 500,000 200,000,000 .25 833,333 1,333,333 Appraisal notices.......................................... 22,000 .5 11,000 6,500,000 .25 27,083 38,083 Appraisal reports.......................................... 22,000 .5 11,000 6,500,000 .25 27,083 38,083 -------------------------------------------------------------------------------------------- Total.................................................. ........... .......... .......... ............... ........... ........... 1,409,499 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ With respect to appraisal notices and appraisal reports, the above figures assume that approximately half of applicable mortgage entities (.5 x 44,000, or 22,000 businesses) would not otherwise provide this information and thus would be affected. \2\ The above figures assume that half of applicable mortgage transactions (.5 x 13,000,000, or 6,500,000) would not otherwise provide the appraisal notices and reports and thus would be affected. Estimated annual cost burden: $46,418,000, rounded. Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours described above. The hourly rates used below ($50 for managerial or professional time, $20 for skilled technical time, and $10 for clerical time) are averages. Recordkeeping: Staff estimates that the general recordkeeping responsibility of one hour per creditor would involve approximately 90 percent clerical time and ten percent skilled technical time. Keeping records of race/national origin, sex, age, and marital status requires an estimated one minute of skilled technical time. As shown below, the total recordkeeping cost is $14,666,666. Disclosure: For each notice or information item listed, staff estimates that the burden hours consist of 10 percent managerial time and 90 percent skilled technical time. As shown below, the total disclosure cost is $32,418,477. -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled technical Clerical Total ------------------------------------------------------------------------------------------- Required task Time Cost ($50/ Time Cost ($20/ Time Cost (10/ (hours) hr.) (hours) hr.) (hours) hr.) Cost ($) -------------------------------------------------------------------------------------------------------------------------------------------------------- General Recordkeeping....................................... 0 0 100,000 $2,000,000 900,000 $9,000,000 $11,000,000 Other Recordkeeping......................................... 0 0 150,000 3,000,000 0 0 3,000,000 ------------------------------------------------------------------------------------------- Total Recordkeeping..................................... ........... ........... ........... ........... ........... ........... 14,666,666 =========================================================================================== Adverse action notices...................................... 133,333 $6,666,665 1,200,000 23,999,994 0 0 30,666,659 [[Page 71789]] Appraisal notices........................................... 3,808 190,415 34,275 685,494 0 0 875,909 ------------------------------------------------------------------------------------------- Appraisal reports........................................... 3,808 190,415 34,275 685,494 0 0 875,909 ------------------------------------------------------------------------------------------- Total Disclosure........................................ ........... ........... ........... ........... ........... ........... 32,418,477 =========================================================================================== Total Recordkeeping and Disclosure...................... ........... ........... ........... ........... ........... ........... 46,418,477 -------------------------------------------------------------------------------------------------------------------------------------------------------- 2. Regulation E The EFTA requires accurate disclosure of the costs, terms, and rights relating to electronic fund transfer (EFT) services to consumers. Regulation E, 12 CFR part 205, promulgated by the Board of Governors of the Federal Reserve System, establishes both recordkeeping and disclosure requirements applicable to entities providing EFT services to consumers. The FTC enforces the EFTA as to all entities providing EFT services except those that are subject to the regulatory authority of another federal agency (such as federally chartered or insured depository institutions). Estimated annual hours burden: 3,579,000 hours (500,000 recordkeeping hours + approximately 3,079,000 disclosure hours). Recordkeeping: Staff estimates that Regulation E's recordkeeping requirements affect 500,000 firms offering EFT services to consumers and subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 500,000 hours. Disclosure: As noted above, Regulation E applies to a highly diverse group of entities, including financial institutions (including certain retailers and electronic commerce entities), service providers, various federal and state agencies offering electronic fund transfers (EFTs), and others. In some instances, where covered entities may make certain required disclosures in the ordinary course of business, the Regulation imposes no burden. In addition, some entities have developed highly automated means of providing the required disclosures, while others rely on methods requiring more manual effort. Thus, the following burden estimates are averages based on staff's best estimate of the burden incurred over an extremely broad spectrum of covered entities. -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/monitoring Transaction-related -------------------------------------------------------------------------------- Total Total Disclosure Average setup Average Total burden Respondents burden per monitoring Number of burden per transaction (hours) respondent burden transactions transaction burden (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Initial terms.............................................. 100,000 .5 50,000 1,000,000 .02 333 50,333 Change in terms............................................ 25,000 .5 12,500 33,000,000 .02 11,000 23,500 Periodic statements........................................ 100,000 .5 50,000 1,200,000,000 .02 400,000 450,000 Error resolution........................................... 100,000 .5 50,000 1,000,000 5 83,333 133,333 Transaction receipts....................................... 100,000 .5 50,000 5,000,000,000 .02 1,666,667 1,716,667 Preauthorized transfers.................................... 500,000 .5 250,000 1,000,000 .25 4167 254,167 Service provider notices................................... 100,000 .25 25,000 1,000,000 .25 4167 29,167 Govt. benefit notices...................................... 10,000 .5 5,000 100,000,000 .25 416,667 421,667 -------------------------------------------------------------------------------------------- Total.................................................. ........... .......... .......... ............... ........... ........... 3,078,834 -------------------------------------------------------------------------------------------------------------------------------------------------------- Estimated annual cost burden: $76,313,000, rounded. Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours described above. The hourly rates used below ($50 for managerial or professional time, $20 for skilled technical time, and $10 for clerical time) are averages. Recordkeeping: For the 500,000 recordkeeping hours, staff estimates that 10 percent of the burden hours require skilled technical time and 90 percent require clerical time. As shown below, the total recordkeeping cost is $5,500,000. Disclosure: For each notice or information item listed, staff estimates that 10 percent of the burden hours require managerial time and 90 percent require skilled technical time. As shown below, the total disclosure cost is $70,813,182. -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled technical Clerical ------------------------------------------------------------------------------ Total cost Required task Time Cost ($50/ Time Cost ($20/ Time Cost ($10/ ($) (hours) hr.) (hours) hr.) (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping............................................... 0 $0 50,000 $1,000,000 450,000 $4,500,000 $5,500,000 Disclosure: Initial terms........................................... 5,033 251,665 45,300 905,994 0 0 $1,157,659 Change in terms......................................... 2,350 117,500 21,150 423,000 0 0 540,500 Periodic statements..................................... 45,000 2,250,000 405,000 8,100,000 0 0 10,350,000 Error resolution........................................ 13,333 666,665 120,000 2,399,994 0 0 3,066,659 Transaction receipts.................................... 171,667 8,583,335 1,540,000 30,900,000 0 0 39,483,34 [[Page 71790]] Preauthorized transfers................................. 25,417 1,270,835 228,750 4,575,006 0 0 5,845,84 Service provider notices................................ 2,917 145,835 26,250 525,006 0 0 670,84 Govt. benefit notices................................... 42,167 2,108,335 379,500 7,590,006 0 0 9,698,34 ------------------------------------------------------------------------------------------- Total Disclosure.................................... ........... ........... ........... ........... ........... ........... 70,813,182 =========================================================================================== Total Recordkeeping and Disclosures................. ........... ........... ........... ........... ........... ........... 76,313,182 -------------------------------------------------------------------------------------------------------------------------------------------------------- (Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.) 3. Regulation M The CLA requires accurate disclosure of the costs and terms of leases to consumers. Regulation M, 12 CFR part 213, promulgated by the Board of Governors of the Federal Reserve System, establishes disclosure requirements that assist consumers in comparison shopping and in understanding the terms of leases and recordkeeping requirements that assist enforcement of the CLA. The FTC enforces the CLA as to all lessors and advertisers except those that are subject to the regulatory authority of another federal agency (such as federally chartered or insured depository institutions). Estimated annual hours burden: 387,500 hours, rounded (200,000 recordkeeping hours + 187,501 disclosure hours). Recordkeeping: Staff estimates that Regulation M's recordkeeping requirements affect 200,000 firms leasing products to consumers and subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 200,000 hours. Disclosure: As noted above, Regulation M applies to a highly diverse group of entities, including automobile 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, and diverse types of lease advertisers, and others. In some instances, where covered entities may make certain required disclosures in the ordinary course of business, the Regulation imposes no burden. In addition, some entities have developed highly automated means of providing the required disclosures, while others rely on methods requiring more manual effort. Thus, the following burden estimates are averages based on staff's best estimate of the burden incurred over an extremely broad spectrum of covered entities. -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/monitoring Transaction-related -------------------------------------------------------------------------------------------- Total Disclosure Average setup/ Average Total Total Respondents burden per monitoring Number of burden per transaction burden respondent burden transactions transaction burden (hours) (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Auto Leases \1\............................................ 100,000 .75 75,000 5,000,000 .50 41,667 116,667 Other Leases \2\........................................... 100,000 .50 50,000 1,000,000 .25 4,167 54,167 Advertising................................................ 25,000 .50 12,500 1,000,000 .25 4,167 16,667 -------------------------------------------------------------------------------------------- Total.................................................. ........... .......... .......... ............... ........... ........... 187,501 -------------------------------------------------------------------------------------------------------------------------------------------------------- \1\ This category focuses on consumer vehicle leases. The number of such leases--the largest category of consumer leases--has increased considerably in recent years. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. Sec. 1667(1); 12 C.F.R. Sec. 213.2(e)(1). \2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. Sec. 1667(1); 12 C.F.R. Sec. 213.2(e)(1). Estimated annual cost burden: $6,513,000, rounded. Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours described above. The hourly rates used below ($50 for managerial or professional time, $20 for skilled technical time, and $10 for clerical time) are averages. Recordkeeping: For the 200,000 recordkeeping hours, staff estimates that 10 percent of the burden hours require skilled technical time and 90 percent require clerical time. As shown below, the total recordkeeping cost is $2,200,000. Disclosure: For each notice or information item listed, staff estimates that 10 percent of the burden hours require managerial time and 90 percent require skilled technical time. As shown below, the total disclosure cost is $4,312,523. -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled technical Clerical ------------------------------------------------------------------------------ Total cost Required task Time Cost ($50/ Time Cost ($20/ Time Cost (10/ ($) (hours) hr.) (hours) hr.) (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping............................................... 0 0 20,000 400,000 1,280,000 1,800,000 2,200,000 [[Page 71791]] Disclosures: Auto Leases............................................. 11,667 583,335 105,000 2,100,006 0 0 2,683,341 Other Leases............................................ 5,417 270,835 48,750 975,006 0 0 1,245,841 Advertising............................................. 1,667 83,335 15,000 300,000 0 0 383,341 ------------------------------------------------------------------------------------------- Total Disclosures................................... ........... ........... ........... ........... ........... ........... 4,312,523 =========================================================================================== Total Recordkeeping and Disclosures................. ........... ........... ........... ........... ........... ........... 6,512,523 -------------------------------------------------------------------------------------------------------------------------------------------------------- (Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.) 4. Regulation Z The TILA was enacted to foster comparison credit shopping and informed credit decision making by requiring accurate disclosure of the costs and terms of credit to consumers. Regulation Z, 12 CFR part 226, promulgated by the Board of Governors of the Federal Reserve System, establishes both recordkeeping and disclosure requirements to assist consumers and the enforcement of the TILA. The FTC enforces the TILA as to all creditors and advertisers except those that are subject to the regulatory authority of another federal agency (such as federally chartered or insured depository institutions). Estimated annual hours burden: 20,473,000 hours, rounded (1,000,000 recordkeeping hours + 19,472,916 disclosure hours). Recordkeeping: FTC staff estimates that Regulation Z's recordkeeping requirements affect approximately 1,000,000 firms offering credit and subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 1,000,000 hours. Disclosure: Regulation Z disclosure requirements pertain to open- end and closed-end credit. As noted above, the Regulation applies to a highly diverse group of entities, including retailers (such as department stores, appliance stores, discount retailers, medical-dental service providers, home improvement sellers, and newly-emerging electronic commerce retail operators); mortgage companies; finance companies; credit advertisers; auto dealerships; student loan companies; home fuel or power services (for furnaces, stoves, microwaves, and other heating, cooling or residential power equipment); credit advertisers; and others. In some instances, where covered entities may make certain required disclosures in the ordinary course of business, the Regulation imposes no burden. In addition, some entities have developed highly automated means of providing the required disclosures, while others rely on methods requiring more manual effort. Thus, the following burden estimates are averages based on staff's best estimate of the burden incurred over an extremely broad spectrum of covered entities. -------------------------------------------------------------------------------------------------------------------------------------------------------- Setup/monitoring Transaction-related -------------------------------------------------------------------------------- Total Total Disclosure Average setup/ Average Total burden Respondents burden per monitoring Number of burden per transaction (hours) respondent burden transactions transaction burden (hours) (hours) (minutes) (hours) -------------------------------------------------------------------------------------------------------------------------------------------------------- Open-end credit: Initial terms.......................................... 100,000 .5 50,000 50,000,000 .25 208,333 258,333 Rescission notices..................................... 50,000 .5 25,000 100,000 .25 417 25,417 Change in terms........................................ 25,000 .5 12,500 136,000,000 .125 283,333 295,833 Periodic statements.................................... 200,000 .5 100,000 4,800,000,000 .0625 5,000,000 5,100,000 Error resolution....................................... 100,000 .5 50,000 10,000,000 5 833,333 883,333 Credit and charge card accounts........................ 100,000 1 100,000 50,000,000 .25 208,333 308,333 Home equity lines of credit............................ 100,000 1 100,000 5,000,000 .25 20,833 120,833 Advertising............................................ 250,000 .25 62,500 700,000 .5 5833 68,333 Closed-end credit: Credit disclosures..................................... 800,000 .50 400,000 330,000,000 2 11,000,000 11,400,000 Rescission notices..................................... 200,000 .50 100,000 34,000,000 1 566,667 666,667 Variable rate mortgages................................ 100,000 .50 50,000 1,800,000 2 60,000 110,000 High rate/high fee mortgages........................... 100,000 .50 50,000 500,000 2 16,667 66,667 Reverse mortgages...................................... 50,000 .50 25,000 150,000 1 2,500 27,500 Advertising............................................ 500,000 .25 125,000 1,000,000 1 16,667 141,667 ============================================================================================ Total open-end credit.............................. ........... .......... .......... ............... ........... ........... 7,060,415 Total closed-end credit............................ ........... .......... .......... ............... ........... ........... 12,412,501 -------------------------------------------------------------------------------------------- Total credit....................................... ........... .......... .......... ............... ........... ........... 19,472,916 -------------------------------------------------------------------------------------------------------------------------------------------------------- Estimated annual cost burden: $458,877,000, rounded. Staff calculated labor costs by applying appropriate hourly cost figures to the burden hours described above. The hourly rates used below ($50 for [[Page 71792]] managerial or professional time, $20 for skilled technical time, and $10 for clerical time) are averages. Recordkeeping: For the 1,000,000 recordkeeping hours, staff estimates that 10 percent of the burden hours require skilled technical time and 90 percent require clerical time. As shown below, the total recordkeeping cost is $11,000,000. Disclosure: For each notice or information item listed, staff estimates that 10 percent of the burden hours require managerial time and 90 percent require skilled technical time. As shown below, the total disclosure cost is $447,877,068. -------------------------------------------------------------------------------------------------------------------------------------------------------- Managerial Skilled technical Clerical ------------------------------------------------------------------------------ Total cost Required task Time Cost ($50/ Time Cost ($20/ Time Cost (10/ ($) (hours) hr.) (hours) hr.) (hours) hr.) -------------------------------------------------------------------------------------------------------------------------------------------------------- Recordkeeping............................................... 0 0 100,000 $2,000,000 900,000 $9,000,000 $11,000,000 Open-end credit Disclosures: Initial terms............................................... 25,833 $1,291,665 232,500 $4,649,994 0 0 $5,941,659 Rescission notices.......................................... 2,542 127,085 22,875 457,506 0 0 584,491 Change in terms............................................. 29,583 1,479,165 266,250 5,324,994 0 0 6,804,159 Periodic statements......................................... 510,000 25,500,000 4,590,000 91,800,000 0 0 117,300,000 Error resolution............................................ 88,333 4,416,665 795,000 15,899,994 0 0 20,316,659 Credit and charge card accounts............................. 30,833 1,541,665 277,500 5,549,994 0 0 7,091,659 Home equity lines of credit................................. 12,083 604,165 108,750 2,174,994 0 0 2,779,159 Advertising................................................. 6,833 341,665 61,500 1,229,994 0 0 1,571,659 ------------- Total open-end credit............................... ........... ........... ........... ........... ........... ........... 162,389,545 =========================================================================================== Closed-end credit Disclosures: Credit disclosures.......................................... 1,140,000 57,000,000 10,260,000 205,200,000 0 0 262,200,000 Rescission notices.......................................... 66,667 3,333,335 600,000 12,000,006 0 0 15,333,341 Variable rate mortgages..................................... 11,000 550,000 99,000 1,980,000 0 0 2,530,000 High rate/high fee mortgages................................ 6,667 333,335 60,000 1,200,006 0 0 1,533,341 Reverse mortgages........................................... 2,750 137,500 24,750 495,000 0 0 632,500 Advertising................................................. 14,167 708,335 127,500 2,550,006 0 0 3,258,341 ------------------------------------------------------------------------------------------- Total closed-end credit............................. ........... ........... ........... ........... ........... ........... 285,487,523 =========================================================================================== Total Disclosures................................... ........... ........... ........... ........... ........... ........... 447,877,068 Total Recordkeeping and Disclosures:................ ........... ........... ........... ........... ........... ........... 458,877,068 -------------------------------------------------------------------------------------------------------------------------------------------------------- (Minor discrepancies in totals are due to rounding of the hours shown for skilled technical time.) Debra A. Valentine, General Counsel. [FR Doc. 99-33206 Filed 12-21-99; 8:45 am] BILLING CODE 6750-01-M
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Agency Information Collection Activities; Submission for OMB Review; Comment Request
The Federal Trade Commission (FTC) has submitted to the Office of Management and Budget (OMB) for review under the Paperwork Reduction Act (PRA) information collection requireme...
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