Document headings vary by document type but may contain
                    the following: the agency or agencies that issued and signed a document
the number of the CFR title and the number of each part
                      the document amends, proposes to amend, or is directly
                      related to
the agency docket number / agency internal file number
the RIN which identifies each regulatory action listed in
                      the Unified Agenda of Federal Regulatory and Deregulatory
                      Actions See the
                    Document Drafting Handbook
                    for more details.
 Federal Trade Commission
 AGENCY: Federal Trade Commission (“FTC” or “Commission”).
 ACTION: Notice.
 SUMMARY: The FTC intends to ask the Office of Management and Budget (“OMB”) to extend through April 30, 2015, the current Paperwork Reduction Act (“PRA”) clearance for the information collection requirements in four consumer financial regulations enforced by the Commission. Those clearances expire on April 30, 2012.
 DATES: Comments must be filed by May 29, 2012.
 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/​RegsBEMZpra2*
                         by following the instructions on the web-based form. If you prefer to file your comment on paper, mail or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex J), 600 Pennsylvania Avenue NW., Washington, DC 20580.
 FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the proposed information requirements should be addressed to Carole Reynolds or Soyong Cho, 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 has published for public comment 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 part 1026 (Regulation Z) for those entities under its rulemaking jurisdiction.[1]
                    
                     Although the Dodd-Frank Act transferred most rulemaking authority under ECOA, EFTA, CLA, and TILA to the CFPB, the Board retained rulemaking authority for certain motor vehicle dealers [2]
                    
                     under all of these statutes and also for certain interchange-related requirements under EFTA.[3] As a result of the Dodd-Frank Act, the FTC and the CFPB now share the authority to enforce Regulations B, E, M, and Z for entities for which the FTC had enforcement authority before the Act, except for certain motor vehicle dealers. Because of this shared enforcement jurisdiction, the two agencies have divided the FTC's previously-cleared PRA burden between them,[4]
                    
                     except that the FTC retained all of the part of that burden associated with certain motor vehicle dealers (for brevity, referred to in the burden summaries below as a “carve-out”).[5]
                    
                     The division of PRA burden hours not attributable to certain motor vehicle dealers is reflected in the CFPB's recent PRA clearance requests to OMB,[6]
                    
                     as well as in the FTC's burden estimates below. As a result of the Dodd-Frank Act, the FTC generally has sole authority to enforce Regulations B, E, M, and Z regarding motor vehicle dealers predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.[7]
                    
                     Because the FTC has exclusive jurisdiction to enforce these rules for such motor vehicle dealers, it is including the entire PRA burden for them in the burden estimates below. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must get OMB approval for each collection of 
                    ( print page 25171)
                    information they conduct or sponsor. “Collection of information” includes agency requests or requirements to keep records or provide information to a third party. 
                    *See*44 U.S.C. 3502(3); 5 CFR 1320.3(c). The regulations impose certain recordkeeping and disclosure requirements associated with providing credit or with other financial transactions. On February 7, 2012, the Commission sought comment on the information collection requirements associated with these four regulations. 77 FR 6114.[8]
                    
                     The Commission received one comment from the National Automobile Dealers Association (“NADA”) pertaining to regulatory burden affecting Regulations B, M, and Z.[9] NADA stated, as a general matter, that the FTC staff estimates greatly underestimate the recordkeeping, disclosure, and other related compliance requirements for NADA members [10]
                    
                     for the rules at issue, particularly Regulations B, M, and Z. NADA provided two illustrations of this point for Regulations M and Z (discussed and analyzed below under their applicable sub-headings), but did not provide sufficient specific information from which staff could revisit and revise its estimates. Pursuant to the OMB rules, 5 CFR part 1320, that implement the PRA, 44 U.S.C. 3501 
                    *et seq.,*
                     the FTC is providing this second opportunity for NADA and the general public to comment while the FTC seeks OMB approval to renew the pre-existing clearance for these rules. Although all four of the regulations require covered entities to keep certain records, FTC staff believes these records are kept in the normal course of business even absent the particular recordkeeping requirements.[11]
                    
                     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). The regulations also require covered entities to make disclosures to third-parties. Related compliance involves set-up/monitoring and transaction-specific costs. “Set-up” burden, incurred only by covered new entrants, includes their identifying the applicable required disclosures, determining how best to comply, and designing and developing compliance systems and procedures. “Monitoring” burden, incurred by all covered entities, includes their time and costs to review changes to regulatory requirements, make necessary revisions to compliance systems and procedures, and to monitor the ongoing operation of systems and procedures to ensure continued compliance. “Transaction-related” burden refers to the time and cost associated with providing the various required disclosures in individual transactions. While this burden varies with the number of transactions, the figures shown for transaction-related burden in the tables that follow are estimated averages. The required disclosures do not impose PRA burden on some covered entities because they make those disclosures in their normal course of activities. For other covered entities that do not, their compliance burden will vary widely depending on the extent to which they have developed effective computer-based or electronic systems and procedures to communicate and document required disclosures.[12] 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.[13]
                    
                     The burden estimates represent FTC staff's best assessment, based on its knowledge and expertise relating to the financial services industry. Staff considered the wide variations in covered entities' (1) Size and location; (2) credit or lease products offered, extended, or advertised, and their particular terms; (3) EFT types used; (4) types and frequency of adverse actions taken; (5) types of appraisal reports utilized; and (6) computer systems and electronic features of compliance operations. The cost estimates that follow relate solely to labor costs, and they include the time necessary to train employees how to comply with the regulations. Staff calculated labor costs by multiplying appropriate hourly wage rates by the burden hours described above. The hourly rates used were $49 for managerial oversight, $30 for skilled technical services, and $16 for clerical work. These figures are averages drawn from Bureau of Labor Statistics data.[14]
                    
                     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. The applicable PRA requirements impose minimal capital or other non-labor costs. Affected entities generally already have the necessary equipment for other business purposes. Similarly, FTC staff estimates that compliance with these rules entails minimal printing and copying costs beyond that associated with documenting financial transactions in the ordinary course of business. 1. Regulation B The ECOA prohibits discrimination in the extension of credit. Regulation B implements the ECOA, establishing disclosure requirements to assist customers in understanding their rights under the ECOA and recordkeeping requirements to assist agencies in enforcement. Regulation B applies to retailers, mortgage lenders, mortgage brokers, finance companies, and others. Recordkeeping FTC staff estimates that Regulation B's general recordkeeping requirements affect 530,479 credit firms subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per
                    
                     firm [15]( print page 25172)
                    for a total of 663,099 hours.[16]
                    
                     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 2.25 million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 37,500 hours.[17]
                    
                     Staff also estimates that recordkeeping of self-testing subject to the regulation would affect 1,375 firms, with an average annual burden of one hour (of skilled technical time) per firm, for a total of 1,375 hours, and that recordkeeping of any corrective action as a result of self-testing would affect 10% of them, i.e., 138 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a total of 552 hours.[18]
                    
                     Keeping records of race/national origin, sex, age, and marital status requires an estimated one minute of skilled technical time. Recordkeeping for the self-test responsibility and of any corrective actions requires an estimated one hour and four hours, respectively, of skilled technical time. 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 various types of mortgage credit to provide a copy of the appraisal report to applicants or to notify them of their right to a copy of the report (and thereafter provide a copy of the report, upon the applicant's request). 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.[19] Burden Totals *Recordkeeping:*
                     702,526 hours (625,977 + 76,549 carve-out for motor vehicles); $12,720,734 ($11,384,370 + $1,336,364 carve-out for motor vehicles), associated labor costs. *Disclosures:*
                     1,164,458 hours (1,032,206 + 132,252 carve-out for motor vehicles); $37,146,214 ($32,927,360 + $4,218,854 carve-out for motor vehicles), associated labor costs. Regulation B: Disclosures—Burden Hours
Disclosures
Setup/Monitoring 1
Transaction-related 2Respondents
Average burden per respondent 
                             (hours)
Total setup/monitoring burden 
                             (hours)
Number of transactions
Average 
                             burden per  
                             transaction  
                             (minutes)
Total 
                             transaction  
                             burden  
                             (hours)
Total burden 
                             (hours)Credit history reporting
133,000
.25
33,250
66,309,750
.25
276,291
309,541Adverse action notices
530,000
.75
397,500
106,096,000
.25
442,067
839,567Appraisal notices
5,000
.5
2,500
1,125,000
.25
4,688
7,188Appraisal reports
5,000
.5
2,500
1,125,000
.25
4,688
7,188Self-test disclosures
1,375
.5
688
68,750
.25
286
974Total






1,164,4581
                         The estimates shown reflect a decrease in applicable mortgage entities regarding appraisal notices and appraisal reports. The figures assume that approximately half of mortgage entities (.5 × 10,000, or 5,000 businesses) would not otherwise provide this information and thus would be affected. The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.2
                         The above figures reflect a decrease in mortgage transactions, compared to prior FTC estimates. They also assume that half of applicable mortgage transactions (.5 × 2,250,000, or 1,125,000) would not otherwise provide the appraisal notices and reports and thus would be affected.
 Regulation B: Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost 
                             ($)Time 
                             (hours)
Cost 
                             ($49/hr.)
Time 
                             (hours)
Cost 
                             ($30/hr.)
Time 
                             (hours)
Cost 
                             ($16/hr.)General recordkeeping
0
0
66,310
1,989,300
596,789
9,548,624
11,537,924Other recordkeeping
0
0
37,500
1,125,000
0
0
1,125,000Recordkeeping of test
0
0
1,375
41,250
0
0
41,250Recordkeeping of corrective action
0
0
552
16,560
0
0
16,650Total Recordkeeping






12,720,734( print page 25173)Disclosures:Credit history reporting
30,954
1,516,746
278,587
8,357,610
0
0
9,874,356Adverse action notices
83,957
4,113,893
755,610
22,668,300
0
0
26,782,193Appraisal notices
719
35,231
6,469
194,070
0
0
229,301Appraisal reports
719
35,231
6,469
194,070
0
0
229,301Self-test disclosure
97
4,753
877
26,310
0
0
31,063Total Disclosures






37,146,214Total Recordkeeping and Disclosures






49,866,948
 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, remittance transfer providers, etc. Staff estimates that Regulation E's recordkeeping requirements affect 391,120 firms offering EFT services to consumers and that are subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 391,120 hours. This is further detailed below. Burden Totals *Recordkeeping:*
                     391,120 hours (375,881 + 15,239 carve-out); $6,805,488 ($6,540,328 + $265,160 carve-out), associated labor costs. *Disclosures:*
                     4,019,797 hours (4,002,868 + 16,929 carve-out); $128,236,961 ($127,696,924 + $540,037 carve-out), associated labor costs. Regulation E: Disclosures—Burden Hours
Disclosures
Setup/monitoring
Transaction-relatedRespondents
Average 
                             burden  per  
                             respondent  
                             (hours)
Total setup 
                             monitoring  
                             burden  
                             (hours)
Number of 
                             transactions
Average 
                             burden per  
                             transaction  
                             (minutes)
Total 
                             transaction  
                             burden  
                             (hours)
Total burden 
                             (hours)Initial terms
50,000
.5
25,000
500,000
.02
167
25,167Change in terms
12,500
.5
6,250
16,500,000
.02
5,500
11,750Periodic statements
50,000
.5
25,000
600,000,000
.02
200,000
225,000Error resolution
50,000
.5
25,000
500,000
5
41,667
66,667Transaction receipts
50,000
.5
25,000
2,500,000,000
.02
833,333
858,333Preauthorized transfers 1
257,620
.5
128,810
6,440,500
.25
26,835
155,645Service provider notices
50,000
.25
12,500
500,000
.25
2,083
14,583Govt. benefit notices
5,000
.5
2,500
50,000,000
.25
208,333
210,833ATM notices 2
250
.25
63
50,000,000
.25
208,333
208,396Electronic check conversion 3
57,620
.5
28,810
1,152,400
.02
384
29,194Payroll cards 4
125
.5
63
500,000
3
25,000
25,063Overdraft services 5
50,000
.5
25,000
2,500,000
.02
833
25,833Gift cards 6
50,000
.5
25,000
2,500,000,000
.02
833,333
858,333Remittance transfers: 7Disclosures
35,000
1
35,000
18,000,000
1
300,000
335,000Error resolution
35,000
1
35,000
36,000,000
1
600,000
635,000Agent compliance
35,000
1
35,000
18,000,000
1
300,000
335,000Total






4,019,7971
                         Estimated preauthorized transfers have increased from the FTC's previously cleared estimate.2
                         Estimated ATM transactions have increased from the FTC's previously cleared estimate.3
                         Estimated electronic check conversion has decreased from the FTC's previously cleared estimate.4
                         Payroll card entities and transactions have increased greatly over the years, in large part due to the evolving economy as well as companies seeking ways to cut costs and reduce the amount of paper used in daily operations.
                        ( print page 25174)5
                         Regulation E now covers overdraft services.6
                         Regulation E now, in part, covers gift cards.7
                         Regulation E now covers remittance transfers.
 Regulation E: Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost
                             ($)Time 
                             (hours)
Cost 
                             ($49/hr.)
Time 
                             (hours)
Cost 
                             ($30/hr.)
Time 
                             (hours)
Cost 
                             ($16/hr.)Recordkeeping
0
0
39,112
1,173,360
352,008
5,632,128
6,805,488Disclosures:Initial terms
2,517
123,333
22,650
679,500
0
0
802,833Change in terms
1,175
57,575
10,750
322,500
0
0
380,075Periodic statements
22,500
1,102,500
202,500
6,075,000
0
0
7,177,500Error resolution
6,667
326,883
60,000
1,800,000
0
0
2,126,883Transaction receipts
85,833
4,205,817
772,500
23,175,000
0
0
27,380,817Preauthorized transfers
15,565
762,685
140,080
4,202,400
0
0
4,965,085Service provider notices
1,458
71,442
13,125
393,750
0
0
465,192Govt. benefit notices
21,083
1,033,067
189,750
5,692,500
0
0
6,725,567ATM notices
20,840
1,021,160
187,556
5,626,680
0
0
6,647,840Electronic check conversion
2,919
143,031
26,275
788,250
0
0
931,281Payroll cards
2,506
122,794
22,557
676,710
0
0
799,504Overdraft services
2,583
126,567
23,250
697,500
0
0
824,067Gift cards
85,833
4,205,817
772,500
23,175,000
0
0
27,380,817Remittance transfers:Disclosures
33,500
1,641,500
301,500
9,045,000
0
0
10,686,500Error resolution
63,500
3,111,500
571,500
17,145,000
0
0
20,256,500Agent compliance
33,500
1,641,500
301,500
9,045,000
0
0
10,686,500Total Disclosures






128,236,961Total Record-keeping and Disclosures






135,042,449
 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 54,442 firms within the FTC's jurisdiction leasing products to consumers at an average annual burden of one hour per firm, for a total of 54,442 hours. In its comment NADA observed that preliminary reports from dealers suggest that the FTC estimate for Regulation M advertising compliance, as applied to lease advertisements for motor vehicle dealers, is understated. NADA, however, focused on the FTC estimate of 15 seconds for required disclosures in individual transactions, here, for advertisements. It is “set-up/monitoring” burden, defined above, though, that addresses the time (and associated labor cost) applicable to systems review and monitoring for continued compliance. For lease advertising, estimated setup/monitoring burden is a half-hour. As noted above, the Commission's jurisdiction covers a highly diverse universe of entities. The population of affected motor vehicle dealers is one component of a much larger universe of such entities. Thus, the FTC's estimates may understate some entities' actual experience and perhaps overstate others'. On balance, though, FTC staff believes these estimates are a fair reflection for the overall universe affected, and the estimates factor into consideration that PRA “burden” does not include effort expended in the ordinary course of business, independent of regulatory requirements.[20] Burden Totals *Recordkeeping:*
                     54,442 hours (40,558 + 13,884 carve-out); $947,288 ($705,712 + $241,576 carve-out), associated labor costs. *Disclosures:*
                     68,403 hours (42,139 + 26,264 carve-out); $2,182,050 ($1,344,228 + $837,822 carve-out), associated labor costs.
                    ( print page 25175) Regulation M: Disclosures—Burden Hours
Disclosures
Setup/monitoring
Transaction-relatedRespondents
Average burden per respondent 
                             (hours)
Total setup/monitoring burden 
                             (minutes)
Number of transactions
Average burden per transaction 
                             (minutes)
Total transaction burden 
                             (hours)
Total burden 
                             (hours)Motor Vehicle Leases 1
29,442
1
29,442
1,972,614
.50
16,438
45,880Other Leases 2
25,000
.50
12,500
250,000
.25
1,042
13,542Advertising
13,471
.50
6,736
538,840
.25
2,245
8,981Total






68,4031
                         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). Leases up to $50,000 (plus an annual adjustment) are now covered, which increases the breadth of transactions subject to the FTC's jurisdiction under Regulation M. This increase, however, is more than offset by the FTC now sharing PRA burden with the CFPB, which thus yields a net decrease from past FTC estimates of the number of transactions.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 figures shown for respondents and transactions reflect a net decrease from prior FTC estimates, given current market conditions and the new PRA burden sharing with the CFPB while also recognizing that the CLA and Regulation M now cover leases up to $50,000 (plus an annual adjustment).
 Regulation M: Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost 
                             ($)Time 
                             (hours)
Cost 
                             ($49/hr.)
Time 
                             (hours)
Cost 
                             ($30/hr.)
Time 
                             (hours)
Cost 
                             ($16/hr.)Recordkeeping
0
$0
5,444
$163,320
48,998
$783,968
$947,288Disclosures:Motor Vehicle Leases
4,588
224,812
41,292
1,238,760
0
0
1,463,572Other Leases
1,354
66,346
12,188
365,640
0
0
431,986Advertising
898
44,002
8,083
242,490
0
0
286,492Total Disclosures






2,182,050Total Recordkeeping and Disclosures






$3,129,338
 4. Regulation Z Congress enacted the TILA 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. In its comment, NADA stated that Regulation Z closed-end credit advertising requires much more than one minute of review for individual dealers to gauge compliance with disclosure requirements. As with its point about the FTC's estimate for lease advertising under Regulation M, NADA focused here on the FTC estimate of the time per disclosure in an individual transaction, here, for advertisements, rather than on the time for “set-up/monitoring.” Under the latter category of PRA burden, the FTC estimate is a half-hour. NADA also stated that the estimated burden total appears to assume an average of two transactions per respondent for advertising, with an average burden per transaction of one minute. NADA stated that automobile dealers advertise hundreds, if not thousands of vehicles per year in print, on television, radio, and on sometimes numerous Web sites and other electronic media, and that many are subject to Regulation Z. Again, we note that PRA “burden” does not include effort expended in the ordinary course of business, independent of regulatory requirements.[21]
                    
                     Here, too, as with the other regulations discussed above, we have sought to focus on average incremental PRA burden for the overall—and broad—universe of affected entities. Commission staff estimates that Regulation Z's recordkeeping requirements affect approximately 530,479 entities subject to the FTC's jurisdiction, at an average annual burden of 1.25 hours per entity,[22]
                    
                     for a 
                    ( print page 25176)
                    total of 663,099 hours. This is further detailed below along with estimates for disclosures under Regulation Z. Burden Totals *Recordkeeping:*
                     663,099 hours (586,900 + 76,199 carve-out); $11,537,924 ($10,212,060 + $1,325,864 carve-out), associated labor costs. *Disclosures:*
                     12,000,274 hours (10,957,621 + 1,042,653 carve-out); $382,858,568 ($349,597,924 + $33,260,644 carve-out), associated labor costs. Regulation Z: Disclosures—Burden Hours
Disclosures 1
Setup/monitoring
Transaction-related
Total burden
                             (hours)Respondents
Average burden per
                             
                                respondent 2
                             
                             (hours)
Total setup/monitoring burden
                             (hours)
Number of transactions
Average
                             burden per 
                             
                                transaction 3
                             
                             (minutes)
Total 
                             transaction  
                             burden 
                             (hours)Open-end credit:Initial terms
45,000
.75
33,750
20,000,000
.375
125,000
158,750Rescission notices 4
1,875
.5
938
100,000
.25
417
1,355Subsequent disclosures
10,000
.75
7,500
62,500,000
.188
195,833
203,333Periodic statements
45,000
.75
33,750
1,750,000,000
.0938
2,735,833
2,769,583Error resolution
45,000
.75
33,750
4,000,000
6
400,000
433,750Credit and charge card accounts
25,000
.75
18,750
12,500,000
.375
78,125
96,875Settlement of estate debts 5
45,000
.75
33,750
1,000,000
.375
6,250
40,000Special credit card requirements 6
25,000
.75
18,750
12,500,000
.375
78,125
96,875Home equity lines of credit 7
1,875
.5
938
875,000
.25
3,646
4,584College student credit card marketing—ed. institutions 8
2,500
.5
1,250 250,000
.25
1,042
2,292College student credit card marketing—card issuer reports 9
300
.75
225
18,000
.75
225
450Posting and reporting of credit card agreements 10
25,000
.75
18,750
12,500,000
.375
78,125
96,875Advertising
100,000
.75
75,000
300,000
.75
3,750
78,750Sale, transfer, or assignment of mortgages 11
1,875
.5
938
1,750,000
.25
7,292
8,230Appraiser misconduct reporting 12
625,000
.75
468,750
12,500,000
.375
78,125
546,875Closed-end credit:Credit disclosures 13
380,480
.75
285,360
163,225,920
2.25
6,120,972
6,406,332Rescission notices 14
18,750
.5
9,375
7,500,000
1
125,000
134,375Redisclosures 15
200,000
.5
100,000
1,000,000
2.25
37,500
137,500Variable rate mortgages 16
17,500
.5
8,750
500,000
1.5
12,500
21,250High rate/high-fee mortgages and higher priced mortgages 17
10,000
.5
5,000
125,000
1.5
3,125
8,125Reverse mortgages 18
12,500
.5
6,250
43,750
1
729
6,979Advertising
240,240
.5
120,120
480,480
1
8,008
128,128Private education loans 19
100
.5
50
50,000
1.5
1,250
1,300Sale, transfer, or assignment of mortgages 20
100,000
.5
50,000
5,000,000
.25
20,833
70,833( print page 25177)Appraiser misconduct reporting 21
625,000
.75
468,750
12,500,000
.375
78,125
546,875Total open-end credit






4,538,577Total closed-end credit






7,461,697Total credit






12,000,2741
                         Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $50,000 plus an annual adjustment (except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in transactions. In some instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to Regulation Z have increased estimated PRA burden. The overall effect of these competing factors, combined with the FTC now sharing with the CFPB estimated PRA burden (for all but certain motor vehicle dealers) yields a net decrease from the FTC's prior reported estimate for open-end credit and a net increase from the FTC's prior burden estimate for closed-end credit.2
                         Burden per respondent in many categories has increased compared to prior FTC estimates, due to changes in rules.3
                         Burden per transaction in many categories has increased compared to prior FTC estimates, due to changes in rules.4
                         Mortgages have decreased.5
                         Regulation Z now requires disclosures for timely settlement of estate debts.6
                         Regulation Z now has special credit card requirements.7
                         Home equity lines of credit have decreased.8
                         Regulation Z now requires higher education institutions to disclose credit card marketing agreements.9
                         Regulation Z now requires card issuers to submit reports on college student credit card marketing.10
                         Regulation Z now requires card issuers to post and report general credit card agreements.11
                         Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.12
                         Regulation Z now requires reporting of appraiser misconduct.13
                         Estimated closed-end credit disclosure transactions have increased from the FTC's previously cleared estimate.14
                         Mortgages have decreased.15
                         Regulation Z now has substantial redisclosure requirements. Previously, redisclosures generally were provided in the ordinary course of business. Rule changes since set numerous procedures and circumstances for redisclosures.16
                         Variable rate mortgages have decreased.17
                         Mortgages have decreased.18
                         Reverse mortgages have decreased.19
                         Regulation Z now requires disclosures for private education loans.20
                         Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.21
                         Regulation Z now requires reporting of appraiser misconduct.
 Regulation Z: Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost
                             ($)Time
                             (hours)
Cost 
                             ($49/hr.)
Time
                             (hours)
Cost 
                             ($30/hr.)
Time
                             (hours)
Cost 
                             ($16/hr.)Recordkeeping
0
$0
66,310
$1,989,300
596,789
$9,548,624
$11,537,924Open-end credit Disclosures:Initial terms
15,875
777,875
142,875
4,286,250
0
0
5,064,125Rescission notices
135
6,615
1,220
36,600
0
0
43,215Subsequent disclosures
20,333
996,317
183,000
5,490,000
0
0
6,486,317Periodic statements
276,958
13,570,942
2,492,625
74,778,750
0
0
88,349,692Error resolution
43,375
2,125,375
390,375
11,711,250
0
0
13,836,625Credit and charge card accounts
9,688
474,712
87,187
2,615,610
0
0
3,090,322Settlement of estate debts
4,000
196,000
36,000
1,080,000
0
0
1,276,000Special credit card requirements
9,688
474,712
87,187
2,615,610
0
0
3,090,322Home equity lines of credit
458
22,442
4,126
123,780
0
0
146,222College student credit card marketing—ed institutions
229
11,221
2,063
61,890
0
0
73,111( print page 25178)College student credit card marketing—card issuer reports
45
2,205
405
12,150
0
0
14,355Posting and reporting of credit card agreements
9,688
474,712
87,187
2,615,610
0
0
3,090,322Advertising
7,875
385,875
70,875
2,126,250
0
0
2,512,125Sale, transfer, or assignment of mortgages
823
40,327
7,407
222,210
0
0
262,537Appraiser misconduct reporting
54,687
2,679,663
492,188
14,765,640
0
0
17,445,303Total open-end credit






144,780,593Closed-end credit Disclosures:Credit disclosures
640,633
31,391,017
5,765,699
172,970,970
0
0
204,361,987Rescission notices
13,437
658,413
120,938
3,628,140
0
0
4,286,553Redisclosures
13,750
673,750
123,750
3,712,500
0
0
4,386,250Variable rate mortgages
2,125
104,125
19,125
573,750
0
0
677,875High-rate/high-fee mortgages and higher priced mortgages
969
47,481
8,719
261,570
0
0
309,051Reverse mortgages
698
34,202
6,281
188,430
0
0
222,632Advertising
12,813
627,837
115,315
3,459,450
0
0
4,087,287Private education loans
130
6,370
1,170
35,100
0
0
41,470Sale, transfer, or assignment of mortgages
7,083
347,067
63,750
1,912,500
0
0
2,259,567Appraiser misconduct reporting
54,687
2,679,663
492,188
14,765,640
0
0
17,445,303Total closed-end credit






238,077,975Total Disclosures






382,858,568Total Recordkeeping and Disclosures






394,396,492
 *Request for Comment:*
                     You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before May 29, 2012. Write “Regs BEMZ, PRA Comments, P084812” on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including to the extent practicable, on the public Commission Web site, at 
                    *http://www.ftc.gov/​os/​publiccomments.shtm.*
                     As a matter of discretion, the Commission tries to remove individuals' home contact information from comments before placing them on the Commission Web site. Because you comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone's Social Security number, date of birth, driver's license number or other state identification number or foreign country equivalent, passport number, financial account number, or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do not include any “[t]rade secret or any commercial or financial information which is obtained from any person and which is privileged or confidential” as provided in Section 6(f) of the FTC Act 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns devices, manufacturing processes, or customer names. If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c)).[23]
                    
                     Your 
                    ( print page 25179)
                    comment will be kept confidential only if the FTC General Counsel, in his or her sole discretion, grants your request in accordance with the law and the public interest. 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/​RegsBEMZpra2*
                     by following the instructions on the web-based form. If this Notice appears at 
                    *http://www.regulations.gov/​#!home*, you also may file a comment through that Web site. If you file your comment on paper, write “Regs BEMZ, PRA Comments, P084812” on your comment and on the envelope, and mail or deliver it to the following address: Federal Trade Commission, Office of the Secretary, Room H-113 (Annex J) 600 Pennsylvania Avenue NW., Washington, DC 20580. If possible, submit your paper comment to the Commission by courier or overnight service. Comments on the information collection requirements subject to review under the PRA should additionally be submitted to OMB. If sent by U.S. mail, they should be addressed to Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for the Federal Trade Commission, New Executive Office Building, Docket Library, Room 10102, 725 17th Street NW., Washington, DC 20503. Comments sent to OMB by U.S. postal mail, however, are subject to delays due to heightened security precautions. Thus, comments instead should be sent by facsimile to (202) 395-5167. Visit the Commission Web site at to read this Notice and the news release describing it. 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 May 29, 2012. You can find more information, including routine uses permitted by the Privacy Act, in the Commission's privacy policy, at 
                    *http://www.ftc.gov/​ftc/​privacy.htm.* Willard K. Tom, General Counsel.


# Footnotes

1.
    
                         12 CFR part 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011); 12 CFR part 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011) (amended, 77 FR 6194, Fed. 7, 2012); 12 CFR part 1013 (Reg. M) (76 FR 78500, Dec. 19, 2011) (corrected, 76 FR 81789, Dec. 29, 2011); 12 CFR part 1026 (Reg. Z) (76 FR 79768, Dec. 22, 2011). Back to Citation
 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, § 1029(a), -(c). Back to Citation
 3.
    
                         
                        *See*
                         Dodd-Frank Act, § 1075 (these requirements are implemented through Board Regulation II, 12 CFR part 235, rather than EFTA's implementing Regulation E). Back to Citation
 4.
    
                         The CFPB also factored into its burden estimates respondents over which it has jurisdiction but the FTC does not. Back to Citation
 5.
    
                         These are dealers specified by the Dodd-Frank Act under § 1029 (a), but as limited by subsection (b). Subsection (b) does not preclude CFPB regulatory oversight regarding, among others, businesses that extend retail credit or retail leases for motor vehicles in which the credit or lease offered is provided directly from those businesses, rather than unaffiliated third parties, to consumers. It is not practicable, however, for PRA purposes, to estimate the portion of dealers that engage in one form of financing versus another (and that would or would not be subject to CFPB oversight). Thus, FTC staff's “carve-out” for this PRA burden analysis reflects a general estimated volume of motor vehicle dealers. This attribution does not change actual enforcement authority. Back to Citation
 6.
    
                         OMB Control Numbers 3170-0013 (Regulation B), 3170-0014 (Regulation E), 3170-0008 (Regulation M), and 3170-0015 (Regulation Z). Back to Citation
 7.
    
                         
                        *See*
                         Dodd-Frank Act, § 1029(a), -(c). Back to Citation
 8.
    
                         The Commission published a follow-up notice in the 
                        **Federal Register**
                         on March 5, 2012 (77 FR 13127) to correct certain formatting errors in the Regulation M burden hours table that had initially resulted in misaligned and missing columnar information in that table. Back to Citation
 9.
    
                         NADA's comment is available at 
                        *http://www.ftc.gov/​os/​comments/​regsbemzpra/​index.shtm*. Back to Citation
 10.
    
                         NADA states that it represents approximately 16,000 new car and truck dealers, both domestic and import, with over 32,500 separate franchises. 
                        *Id.* Back to Citation
 11.
    
                         PRA “burden” does not include effort expended in the ordinary course of business, regardless of any regulatory requirement. 5 CFR 1320.3(b)(2). Back to Citation
 12.
    
                         For example, large companies may use computer-based and/or electronic means to provide required disclosures, including issuing some disclosures en masse, e.g., notices of changes in terms. Smaller companies may have less automated compliance systems but may nonetheless rely on electronic mechanisms for disclosures and recordkeeping. Regardless of size, some entities may utilize compliance systems that are fully integrated into their general business operational system; if so, they may have minimal additional burden. Other entities may have incorporated fewer of these approaches into their systems and thus may have a higher burden. Back to Citation
 13.
    
                         The Commission generally does not have jurisdiction over banks, thrifts, and federal credit unions under the applicable regulations. Back to Citation
 14.
    
                         These inputs are based broadly on mean hourly data found within the National Compensation Survey: Occupational Earnings in the United States, 2010, Bulletin 2753 (May 2011), Table 3 (
                        *http://www.bls.gov/​ncs/​ocs/​sp/​nctb1477.pdf*). Back to Citation
 15.
    
                         This is an increase from past estimates of one hour per respondent in view of more complex transactions and their associated impact on recordkeeping. Back to Citation
 16.
    
                         Section 1071 of the Dodd-Frank Act amends the ECOA to require financial institutions to collect and report information concerning credit applications by women- or minority-owned businesses and small businesses, effective on the July 21, 2011 transfer date. Both the CFPB and the Board have exempted affected entities from complying with this requirement until a date set by the prospective final rules these agencies issue to implement the Dodd-Frank Act's requirements. The Commission will address PRA burden for its enforcement of these requirements after the CFPB and the Board have issued the associated final rules. Back to Citation
 17.
    
                         Regulation B contains model forms that creditors may use to gather and retain the required information. Back to Citation
 18.
    
                         In contrast to banks, for example, entities under FTC jurisdiction are not subject to audits for compliance with Regulation B; rather they may be subject to FTC investigations and enforcement actions. This may impact the level of self-testing (as specifically defined by Regulation B) in a given year, and staff has sought to address such factors in its burden estimates. Back to Citation
 19.
    
                         The disclosure may be provided orally or in writing. The model form provided by Regulation B assists creditors in providing the written disclosure. Back to Citation
 20.
    
                         For example, some entities may advertise leases but may not promote the lease terms covered by Regulation M; instead, they may make general statements about offering leases, which do not trigger advertising compliance responsibilities under Regulation M. Back to Citation
 21.
    
                         Some entities may not promote credit terms covered by Regulation Z. For example, they may offer sale prices for products or make general statements about the availability of credit, which do not trigger advertising compliance responsibilities under Regulation Z. Others may offer specific credit terms but they may be subject to exceptions under Regulation Z, and disclosures would not be required, such as offers that no downpayment or no trade-in is required. Back to Citation
 22.
    
                         This is an increase from past estimates of one hour per respondent in recognition of the breadth of amendments to Regulation Z and their associated 
                        
                        impact on recordkeeping though increased coverage and more complex transactions. Back to Citation
 23.
    
                         In particular, the written request for confidential treatment that accompanies the 
                        
                        comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. 
                        *See*
                         FTC Rule 4.9(c), CFR 4.9(c), 16 CFR 4.9(c). Back to Citation


[FR Doc. 2012-10097 Filed 4-26-12; 8:45 am] BILLING CODE 6750-01-P