BUREAU OF CONSUMER FINANCIAL PROTECTION

PAPERWORK REDUCTION ACT SUBMISSION

INFORMATION COLLECTION REQUEST

SUPPORTING STATEMENT PART A

CONSUMER LEASING ACT 

(REGULATION M) 12 CFR 1013

(OMB CONTROL NUMBER: 3170-0006)

OMB TERMS OF CLEARANCE:

Not applicable. The Office of Management and Budget (OMB) did not provide Terms of 

Clearance when approved this information collection on July 6, 2012.

ABSTRACT: 

Consumers rely upon the disclosures required by the Consumer Leasing Act, 15 U.S.C. 

1667 et seq. (CLA) and Regulation M, 12 CFR 1013, for information to comparison shop among 

leases, as well as to ascertain the true costs and terms of lease offers. Federal and state 

enforcement and private litigants use the records to ascertain whether accurate and complete 

disclosures of the cost of leases have been provided to consumers prior to consummation of the 

lease. This information provides the primary evidence of law violations in CLA enforcement 

actions brought by federal agencies. Without Regulation M's recordkeeping requirement, the 

agencies' ability to enforce the CLA would be significantly impaired.

A. JUSTIFICATION

1. Circumstances Necessitating the Data Collection

The Consumer Leasing Act, 15 U.S.C. 1667 et seq. (CLA), an amendment to the Truth 

in Lending Act (TILA), 15 U.S.C. 1601 et seq., was enacted to foster comparison shopping and 

informed decision making by requiring accurate disclosure of the costs and terms of leases to 

consumers. Lessors are subject to disclosure requirements that apply to both open-end leases 

(i.e., with a residual due at lease end) and closed-end leases (i.e., “walkaway” leases, with no 

substantial amount due at lease end).

Disclosure

Regulation M imposes disclosure requirements on all types of lessors, 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. These requirements are intended to ensure that consumers are fully apprised of the terms 

of leases prior to consummation of the transaction. The written disclosures required by 
2

Regulation M are derived from statutory disclosures and directives mandated by the CLA. See 

12 CFR 1013.4; 15 U.S.C. 1667a; 15 U.S.C. 1667f (written disclosures); 12 CFR 1013.7; 15 

U.S.C. 1667c; 15 U.S.C. 1667f (advertising disclosures).

Regulation M includes model forms and clauses that can be used to comply with the 

written disclosure (non-advertising) requirements of the CLA and Regulation M. See

Appendices A-1, A-2, and A-3 to Regulation M. Correct use of these model forms and clauses 

insulates lessors from liability under the CLA and Regulation M. See comment I-1.

Recordkeeping

Section 1013.8 of Regulation M requires lessors to retain evidence of compliance with 

its requirements (other than its advertising rules) but does not specify the particular records to 

be kept. Entities subject to Regulation M may choose the records they consider adequate to 

show compliance, and each entity may interpret the requirement differently. Records, however, 

must be retained for twenty-four months.

2. Use of the Information

As noted above, consumers rely upon the disclosures required by the CLA and 

Regulation M for information to comparison shop among leases, as well as to ascertain the true 

costs and terms of lease offers.

Federal and state enforcement and private litigants use the records to ascertain whether 

accurate and complete disclosures of the cost of leases have been provided to consumers prior to 

consummation of the lease. This information provides the primary evidence of law violations in 

CLA enforcement actions brought by federal agencies. Without Regulation M’s recordkeeping 

requirement, the agencies’ ability to enforce the CLA would be significantly impaired.

3. Use of Information Technology

The disclosures required by Regulation M may be provided to the consumer in electronic 

form, subject to compliance with the consumer consent and other applicable provisions of the 

Electronic Signatures in Global and National Commerce Act (E-Sign Act), 15 U.S.C. 7001 et 

seq. Use of such electronic communications is consistent with the Government Paperwork 

Elimination Act (GPEA), Title XVII of Pub. L. 105-277, codified at 44 U.S.C. 3504 note. The 

E-Sign Act and GPEA serve to reduce businesses’ compliance burden related to federal 

requirements, including Regulation M, by enabling lessors to utilize more efficient electronic 

media for disclosures and compliance.

Regulation M also permits lessors to retain records on any method that reproduces 

records accurately, including computer programs, microfilm, or microfiche. Lessors need only 

retain enough information to reconstruct the required disclosure or other records. See 12 CFR 

1013.8 and comment 8-1.
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Most lessors use computer support to calculate the required information and generate 

the mandated disclosures, thereby limiting the burden on these entities.

4. Efforts to Identify Duplication

The disclosures required by the CLA and Regulation M are not otherwise available. 

Although some lease cost information is contained in contractual documents, the information is 

not standardized, and as a result, consumers cannot use them efficiently to comparison shop or 

fully appreciate lease terms.

The recordkeeping requirement of Regulation M preserves the information provided by 

lessors to consumers considering the costs and terms of lease offers. The lessor is the only 

source of this information. No other federal law mandates retention of this information. No state 

law known to the CFPB imposes this requirement, although some states may have other rules 

applicable to consumer leases.

5. Efforts to Minimize Burdens on Small Entities

The CLA and Regulation M disclosure and recordkeeping requirements are imposed on 

all lessors. Most lessors today utilize some measure of computerization in their business, and 

Regulation M permits lessors to rely on computer support, among other alternatives, to meet 

their recordkeeping and disclosure requirements. This flexibility presumably yields reduced 

recordkeeping and disclosure costs (see #3 above.) Regulation M also provides model forms and 

clauses that may be used to comply with its requirements, and correct use of these forms and 

clauses insulates a lessor from liability for the respective requirements.

6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction

The disclosure requirements are needed to facilitate comparison cost shopping and to 

spur informed lease decision making. If these requirements were eliminated, consumers would 

not have access to this critical information. Their right to sue under the CLA would be 

undermined, and enforcement agencies could not fulfill their charge in enforcing CLA. 

The current record retention period of two years supports the one-year statute of 

limitations for private actions, and enforcement agencies’ need for sufficient time to bring 

enforcement actions regarding lease transactions. If the retention period were shortened,

consumers who sue under the CLA, and the administrative agencies, might find that lessor 

records needed to prove violations of the CLA no longer exist.

7. Circumstances Requiring Special Information Collection

The recordkeeping and disclosure requirements in Regulation M are consistent with the 

applicable guidelines contained in 5 CFR 1320.5(d)(2).
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8. Consultation Outside the Agency

We have consulted with industry experts and other federal regulators to gather 

information relating to the burdens of CLA and Regulation M. In addition, in accordance with 5 

CFR §1320.8(d)(1), the Bureau has published a notice Federal Register allowing the public 60 

days to comment on this proposed the extension (renewal) of this currently approved collection 

of information. Further and in accordance with 5 CFR §1320.5(a)(1)(iv), the Bureau will also 

publish a notice in the Federal Register allowing the public 30 days to comment on the 

submission of this information collection request to the Office of Management and Budget. 

9. Payments or Gifts to Respondents

No payments or gifts are provided to respondents.

10. Assurances of Confidentiality

The recordkeeping and written disclosure requirements contain private financial 

information about consumers who apply for and/or obtain consumer leases. Such information is 

protected by the Right to Financial Privacy Act, 12 U.S.C. 3401 et seq. Such records may also 

constitute confidential customer lists. However, there is no part of the rule that mandates 

information collection by the CFPB.

To the extent that information covered by a recordkeeping requirement is collected by the 

CFPB for law enforcement purposes, the confidentiality provisions of CFPB’s rules on 

Disclosure of Records and Information, 12 CFR Part 1070, would apply.

11. Justification for Sensitive Questions

Regulation M only requires institutions to provide leasing information disclosures to 

consumers and keep records of those disclosures. No questions of a sensitive nature are asked of 

respondents.
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12. Estimated Burden of Information Collection

Labor Hours: 5,500

Exhibit 1: Burden Hour Summary

The CFPB and Federal Trade Commission (FTC) share enforcement authority for 

those non-depository institutions subject to the CFPB’s regulation M, with the CFPB 

assuming burden for half of all non-depository institutions. Our estimate excludes burden 

for motor vehicle dealers, which the FTC assumes burden for. The CFPB believes that 

depository institutions represent a negligible segment of the leasing market. 

The CFPB estimates the total labor burden for ongoing recordkeeping and disclosure 

requirements under Regulation M to be 11,000 hours for non-motor vehicle lessors. The CFPB 

assumes 5,500 hours of this burden associated with regulation M. The CFPB estimates of 

respondent and market volumes are drawn from a number of public and proprietary sources.1

 

Associated Labor Cost: $197,945

The CFPB calculated labor costs by estimating the burden hours associated with 

complying with the required disclosures, advertising disclosures, and recordkeeping activates 

 1 Market size sources include internal CFPB automobile markets data, Mintel® auto advertising data, publicly 

available Census data on County Business Patterns (2013-2014), and previous FTC estimate under OMB 3084-0086 

(2012). 

Regulation Description

No. of 

Respondents

Responses

per

Respondent

Average 

Response 

Time (hrs.)

Total 

Hours

No. of 

Respondents

Responses

per

Respondent

Average 

Response 

Time (hrs.)

Total 

Hours

Combined 

Total

1013.3 Requires Disclosures 

described in 1013.4

376 1 4.39 1,652 13,718 12 0.01 1,235 2,887 

1013.4(a) 

through (e), 

g(1), 

h(1)(2),(i) 

through (t) 

Content of disclosures 

required by 1013.3 for 

any "consumer lease"

376 1 4.39 1,652 13,718 12 0.01 1,235 2,887 

1013.5 (a) 

through (c) 

Extends disclosure 

requirements of 1013.3 

to lease renogetiation 

and extension

376 1 4.39 1,652 13,718 12 0.01 1,235 2,887 

1013.7(a) 

through (e) Advertising disclosures 0 0 N/A 0 0 0 N/A 0 0

1013.7(f)

Advertising disclosures 

on TV/Radio 

alternative 

requirements

0 0 N/A 0 0 0 N/A 0 0

1013.8 Recordkeeping 376 1 4.39 1,652 13,718 12 0.00 686 2,338 

Other Lessors Total 6,610 4,390 11,000 

CFPB portion 3,305 2,195 5,500 

Non-Motor-Vehicle Lessors Labor Burden

One time Ongoing
6

described in Exhibit 1,

2 and applying appropriate hourly cost figures.3

 With a composite wage 

of $35.99, the cost for these labor hours then works out to be 11,000 hours * $35.99/hour = 

$395,890 labor cost overall, of which 5,500 hours * $35.99/hour = $197,945 labor cost is 

attributed to the CFPB.

13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers

Additional Materials Cost: $14,789

Exhibit 2: Additional Materials Cost

The CFPB claims responsibility for an additional $14.789 in non-motor-vehicle lessor’s 

burden resulting from material costs directly related to the information collections in Exhibit 2. 

The material costs of disclosures were estimated based on industry and supervisory estimates as 

well as previous FTC estimates of per-transaction burden.

4

 The number of respondents and 

market sizes were estimated from proprietary and public data sources available to the CFPB. 5

 2 These hourly estimates were based on previous PRA estimates compiled by the FTC; see OMB 3084-0086 (2012). 3 Wage burden was calculated as a composite wage, with weighting based on previous estimates and information 

provided by various industry professionals. Median values from the BLS Occupational Employment and Wages data 

were used to estimate a composite wage as 5% Compliance Officer (occupation code 13-1041) at $30.93/hour, 5% 

Sales Manager (occupation code 11-2022) at $52.18/hour), 45% Lawyer at $54.95/hour (occupation code 23-1011),

and 45% administrative assistant (occupation code 43-6014) at $15.79/hour), for a composite wage of $35.99. 4 See 2 above. 5 Market size sources include internal CFPB automobile markets data, Mintel® auto advertising data, publicly 

available Census data on County Business Patterns (2013-2014), and previous FTC estimates (see 4 above).

Regulation Type

No. of 

Respondents

Responses 

per

Respondent

Cost per 

Response Total

1013.3 Requires Disclosures described in 

1013.4 13,718 12 $0.06 $ 9,136

1013.4(a) through 

(e), g(1), h(1)(2),(i) 

through (t) 

Content of disclosures required by 

1013.3 for any "consumer lease" 13,718 12 $0.06 $ 9,136

1013.5 (a) through 

(c) 

Extends disclosure requirements of 

1013.3 to lease renogetiation and 

extension

13,718 12 $0.06 $ 9,136

1013.7(a) through 

(e) Advertising disclosures 0 0 $0.00 $ -

1013.7(f) Advertising disclosures on 

TV/Radio alternative requirements 0 0 $0.00 $ -

1013.8 Recordkeeping 13,718 12 $0.01 $ 2,170

Other Lessors Total $ 29,578

CFPB portion $ 14,789

Non-Motor-Vehicle Materials Burden
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14. Estimated Cost to the Federal Government

As the CFPB does not collect any information, there are no additional costs to the Federal 

Government.

15. Program Changes or Adjustments

Exhibit 3: Summary of Burden Changes

Total Respondents

Annual 

Responses

Burden 

Hours Materials Cost

Total Annual Burden 

Requested 13,718 164,616 5,500 $14,789

Current OMB Inventory 67,858 67,858 100,058 $ 0 

Difference -54,140 96,758 -94558 $14,789

 Program Change 0 0 0 $ 0 

 Discretionary 0 0 0 $ 0 

 New Statue 0 0 0 $ 0

 Violation 0 0 0 $ 0

 Adjustment -54,140 96,758 -94,558 $14,789

The new estimates calculated by the CFPB reflect a decrease of -94,558 burden hours and 

an increase of $14,789 of material cost burden. The estimated burden hours are lower than

CFPB and FTC’s previous estimates for several reasons. First and foremost, the decrease in 

burden hours represents a significant drop in the estimated number of non-motor-vehicle lessors 

in the past 3 years. Secondly, the CFPB estimate excludes one-time costs that were associated 

with rule changes in previous estimates, and also excludes previously reported burden associated 

with motor-vehicle enforcement (the FTC assumes all burden related to motor vehicle leasing). 

The increase in material cost arises because we provide an estimate for the small material burden

associated with each lease transaction. The decision to estimate per-transaction costs as material 

burden reflects the CFPB’s belief that the process of providing disclosures and recordkeeping 

has become almost entirely automated, but that there is a small cost of printing and technology 

costs associated with each additional lease. 

16. Plans for Tabulation, Statistical Analysis, and Publication

There are no plans to provide any publications based on the information collection of this 

regulation.

17. Display of Expiration Date
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The only forms associated with the collection are non-mandatory model forms, therefore 

display of the OMB control Number and expiration date on them would not be appropriate. The

OMB number will be displayed in the Code of Federal Regulations. Further, the OMB control 

number and expiration date will be displayed on the Federal government’s electronic PRA 

docket at www.reginfo.gov.

18. Exceptions to the Certification Requirement 

The Bureau certifies that this collection of information is consistent with the requirements 

of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8(b)(3) and is not seeking an 

exemption to these certification requirements.