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
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                    for more details.
 Federal Trade Commission
 AGENCY: Federal Trade Commission (“FTC” or “Commission”).
 ACTION: Notice.
 SUMMARY: In compliance with the Paperwork Reduction Act (PRA) of 1995, the FTC is seeking public comments on its request to the Office of Management and Budget (“OMB”) to extend for three years the current PRA clearances for the information collection requirements in four consumer financial regulations that the Commission enforces. Those clearances expire on July 31, 2018.
 DATES: Comments must be filed by August 27, 2018.
 ADDRESSES: Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of the 
                        **SUPPLEMENTARY INFORMATION**
                         section below. Write “Regs BEMZ, PRA Comments, P084812” on your comment and file your comment online at 
                        *https://ftcpublic.commentworks.com/​ftc/​RegsBEMZpra2*
                         by following the instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC 20024.
 FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the proposed information requirements should be addressed to Carole Reynolds or Stephanie Rosenthal, Attorneys, Division of Financial Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Ave. NW, Washington, DC 20580, (202) 326-3224.


SUPPLEMENTARY INFORMATION: On April 3, 2018, the FTC sought public comment on the information collection requirements associated with the four consumer financial regulations at issue. 83 FR 14273. No relevant comments were received. The four regulations covered by that and this Notice were and are, respectively: (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 that these laws cover unless the 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 Bureau of Consumer Financial Protection (BCFP) on July 21, 2011 (“transfer date”). To implement this transferred authority, the BCFP published interim final rules for new regulations in 12 CFR part 1002 (Regulation B), 12 CFR part 1005 (Regulation E), 12 CFR part 1013 (Regulation M), and 12 CFR 1026 (Regulation Z) for those entities under its rulemaking jurisdiction, which were issued as final rules thereafter.[1]
                    
                     Although the Dodd-Frank Act transferred most rulemaking authority under ECOA, EFTA, CLA, and TILA to the BCFP, the Board retained rulemaking authority for certain motor vehicle dealers [2]
                    
                     under these statutes and also for certain interchange-related requirements under EFTA.[3] As a result of the Dodd-Frank Act, the FTC and the BCFP generally share the authority to enforce Regulations B, E, M, and Z for entities for which the FTC had enforcement authority before the Act.[4]
                    
                     For certain motor vehicle dealers and for certain state-chartered credit unions, the FTC generally has exclusive enforcement jurisdiction.[5]
                    
                     The division 
                    ( print page 35478)
                    of PRA burden hours not attributable to motor vehicle dealers and, when appropriate, to state-chartered credit unions, is reflected in the BCFP's PRA clearance requests to OMB, as well as in the FTC's burden estimates below. The burden estimates associated with all motor vehicle dealers and now, when appropriate, the estimated burden estimates associated with state-chartered credit unions, are reflected in the burden summaries below as a “carve-out.” [6] The regulations impose certain recordkeeping and disclosure requirements associated with providing credit or with other financial transactions. Under the PRA, 44 U.S.C. 3501-3521, Federal agencies must get OMB approval for each collection of information they conduct or sponsor. “Collection of information” includes agency requests or requirements to submit reports, keep records, or provide information to a third party. 
                    *See*44 U.S.C. 3502(3); 5 CFR 1320.3(c). The required recordkeeping and disclosures do not impose PRA burden on some covered entities because they make those disclosures and maintain records in their normal course of activities.[7]
                    
                     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 recordkeeping and disclosures.[8] Covered entities, 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, thus, generally, of much less magnitude than “monitoring” (or “setup”) burden. The FTC's estimates of transaction time and volume are intended as averages. Calculating the burden associated with the regulations' 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.[9]
                    
                     The burden estimates represent FTC staff's best assessment, based on its knowledge and expertise relating to the financial services industry, of the average time to complete the aforementioned tasks associated with recordkeeping and disclosure. Staff considered the wide variations in covered entities' (1) size and location; (2) credit or lease products offered, extended, or advertised, and their particular terms; (3) EFT types used; (4) types and frequency of adverse actions taken; (5) types of appraisal reports utilized; and (6) computer systems and electronic features of compliance operations. The cost estimates that follow relate solely to labor costs, and they include the time necessary to train employees how to comply with the regulations. Staff calculated labor costs by multiplying appropriate hourly wages by the burden hours described above. The hourly wages used were $56 for managerial oversight, $42 for skilled technical services, and $17 for clerical work. These figures are averages drawn from Bureau of Labor Statistics data.[10]
                    
                     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 normal course of business. The following discussion and tables present FTC estimates under the PRA of recordkeeping and disclosure average time and labor costs, excluding that which the FTC believes entities incur customarily in the normal course of business [11]
                    
                     and information compiled and produced in response to FTC law enforcement investigations or prosecutions.[12] 
 
 1. Regulation B The ECOA prohibits discrimination in the extension of credit. Regulation B implements the ECOA, establishing disclosure requirements to assist customers in understanding their rights under the ECOA and recordkeeping requirements to assist agencies in enforcement. Regulation B applies to retailers, mortgage lenders, mortgage brokers, finance companies, and others. Recordkeeping FTC staff estimates that Regulation B's general recordkeeping requirements affect 530,762 credit firms subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per firm for a total of 663,453 hours.[13]
                    
                     Staff also estimates that the requirement that mortgage creditors monitor information about race/national origin, sex, age, and marital status imposes a maximum burden of one minute each (of skilled technical time) for approximately 2.6 million credit applications (based on industry data regarding the approximate number of mortgage purchase and refinance originations), for a total of 43,333 hours.[14]
                    
                     Staff also estimates that recordkeeping of self-testing subject to the regulation would affect 1,500 firms, with an average annual burden of one hour (of skilled technical time) per firm, for a total of 1,500 hours, and that recordkeeping of any corrective action as a result of self-testing would affect 10% of them, 
                    *i.e.,*
                     150 firms, with an average annual burden of four hours (of skilled technical time) per firm, for a total of 600 hours.[15]
                    
                     Keeping associated records of race/national origin, sex, age, and marital status requires an estimated one minute 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 mortgage credit with first liens to provide a copy of the appraisal report or other written valuation to applicants.[16]
                    
                     Regulation B also requires that for accounts that 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.[17] Burden Totals *Recordkeeping:*
                     708,886 hours (631,281 + 77,605 carve-out); $14,845,512 ($13,316,477 + $1,529,035 carve-out), associated labor costs *Disclosures:*
                     1,088,912 hours (961,224 + 127,688 carve-out); $47,258,792 ($41,717,144 + $5,541,648 carve-out), associated labor costs Regulation B—Disclosures—Burden Hours
Disclosures
Setup/monitoring 1
Transaction-related 2
Total 
                             Burden 
                             (hours)Respondents
Average
                             burden per 
                             respondent 
                             (hours)
Total setup/
                             monitoring 
                             burden 
                             (hours)
Number of
                             transactions
Average
                             burden per 
                             transaction 
                             (minutes)
Total 
                             transaction burden 
                             (hours)Credit history reporting
133,553
.25
33,388
60,098,850
.25
250,412
283,800Adverse action notices
530,762
.75
398,072
92,883,350
.25
387,014
785,086Appraisal reports/written valuations
4,650
1
4,650
1,725,150
.50
14,376
19,026Self-test disclosures
1,500
.5
750
60,000
.25
250
1,000Total






1,088,9121
                         The estimates assume that all applicable entities would be affected, with respect to appraisal reports and other written valuations. Given market changes, the estimated number of these entities is decreased slightly while the estimated number of entities affected by credit history, adverse action and self-test burden is increased slightly from the most recently cleared FTC burden estimates.2
                         Applicable transactions have increased for appraisal reports; however, credit history, adverse action and self-test transactions have decreased, based on market changes.
 Regulation B—Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost
                             ($)Time
                             (hours)
Cost
                             ($56/hr.)
Time
                             (hours)
Cost
                             ($42/hr.)
Time
                             (hours)
Cost
                             ($17/hr.)General recordkeeping
0
$0
66,345
$2,786,490
597,108
$10,150,836
$12,937,326Other recordkeeping
0
0
43,333
1,819,986
0
0
1,819,986Recordkeeping of self-test
0
0
1,500
63,000
0
0
63,000Recordkeeping of corrective action
0
0
600
25,200
0
0
25,200Total Recordkeeping






14,845,512Disclosures:( print page 35480)Credit history reporting
28,380
1,589,280
255,420
10,727,640
0
0
12,316,920Adverse action notices
78,509
4,396,504
706,577
29,676,234
0
0
34,072,738Appraisal reports
1,903
106,568
17,123
719,166
0
0
825,734Self-test disclosure
100
5,600
900
37,800
0
0
43,400Total Disclosures






$47,258,792Total Recordkeeping and Disclosures






$62,104,304
 2. Regulation E The EFTA requires that covered entities provide consumers with accurate disclosure of the costs, terms, and rights relating to EFT and certain other services. Regulation E implements the EFTA, establishing disclosure and other requirements to aid consumers and recordkeeping requirements to assist agencies with enforcement. It applies to financial institutions, retailers, gift card issuers and others that provide gift cards, service providers, various federal and state agencies offering EFTs, prepaid account entities, etc. Staff estimates that Regulation E's recordkeeping requirements affect 251,053 firms offering EFT and certain other services to consumers and that are subject to the Commission's jurisdiction, at an average annual burden of one hour per firm, for a total of 251,053 hours. This represents a decrease from prior figures, reflecting a decrease in entities under FTC jurisdiction engaged in applicable activities. Burden Totals *Recordkeeping:*
                     251,053 hours (233,947 + 17,106 carve-out); $4,895,526 ($4,561,949 + $333,577 carve-out), associated labor costs *Disclosures:*
                     7,184,905 hours (7,165,931 + 18,974 carve-out); $311,824,884 ($310,999,818 + $825,066 carve-out), associated labor costs Regulation E—Disclosures—Burden Hours
Disclosures
Setup/monitoring 1
Transaction-related 2
Total 
                             Burden 
                             (hours)Respondents
Average
                             burden per 
                             respondent 
                             (hours)
Total setup/
                             monitoring 
                             burden 
                             (hours)
Number of
                             transactions
Average
                             burden per 
                             transaction 
                             (minutes)
Total 
                             transaction  
                             burden 
                             (hours)Initial terms
27,300
.5
13,650
273,000
.02
91
13,741Change in terms
8,550
.5
4,275
11,286,000
.02
3,762
8,037Periodic statements
27,300
.5
13,650
327,600,000
.02
109,200
122,850Error resolution
27,300
.5
13,650
273,000
5
22,750
36,400Transaction receipts
27,300
.5
13,650
1,375,000,000
.02
458,333
471,983Preauthorized transfers 2
258,553
.5
129,277
6,463,825
.25
26,933
156,210Service provider notices
20,000
.25
5,000
200,000
.25
833
5,833ATM notices
125
.25
31
25,000,000
.25
104,167
104,198Electronic check conversion 3
48,553
.5
24,277
728,295
.02
243
24,520Overdraft services
15,000
.5
7,500
1,500,000
.02
500
8,000Gift cards
15,000
.5
7,500
750,000,000
.02
250,000
257,500Remittance transfers:Disclosures
4,800
1.25
6,000
96,000,000
.9
1,440,000
1,446,000Error resolution
4,800
1.25
6,000
120,960,000
.9
1,814,400
1,820,400Agent compliance
4,800
1.25
6,000
96,000,000
.9
1,440,000
1,446,000Prepaid accounts and gov't benefits: 4Disclosures
550
5
                             40 × 10
220,000
2,750,000,000
.02
916,667
1,136,667Disclosures—updates
138
1 × 10
6
                             1,380
N/A


1,380Access to account information
550
7
                             20 × 10
110,000
1,100,000
.01
183
110,183Error resolution
300
4 × 4
4,800
275,000
2
9,167
13,967Error resolution—followup 8

N/A

1,380
30
690
690Submission of agreements
138
2 × 1
276
690
1
12
288Updates to agreements 9

N/A

690
5
58
58Total






7,184,9051
                         Except as noted below, most respondent tallies in this table have decreased due to business shifts and other market changes that result in fewer entities under FTC jurisdiction. Accordingly, related transactions under FTC jurisdiction have also decreased.2
                         Preauthorized transfers rules apply to “persons” and entities. The number of respondents and transactions by such persons have increased, as these preauthorized transfers are used more commonly than previously.3
                         The total number of electronic check conversion respondents and transactions has decreased, particularly due to declining check usage.4
                         Prepaid accounts are now covered by Regulation E (and payroll cards are included in this area). Government benefit notices are included also in this area, although some separate requirements for government benefits remain; these factors are accounted for in the estimates. The number of government benefit entities also have declined given business shifts that have reduced the number of entities under FTC jurisdiction (and prepaid entities under FTC jurisdiction are also few in number).5
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.6
                         This reflects prepaid accounts' updates of additional fee type disclosures. Individual burden hours are listed first, followed by the number of programs.7
                         Burden hours are on a per program basis; individual burden hours are listed first, followed by the number of programs.8
                         This pertains to prepaid accounts.9
                         This pertains to prepaid accounts' agreements.
 
 
 Regulation B—Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total cost
                             ($)Time
                             (hours)
Cost
                             ($56/hr.)
Time
                             (hours)
Cost
                             ($42/hr.)
Time
                             (hours)
Cost
                             ($17/hr.)Recordkeeping
0
$0
25,105
$1,054,410
225,948
$3,841,116
$4,895,526Disclosures:Initial terms
1,374
76,944
12,367
519,414
0
0
596,358Change in terms
804
45,024
7,233
303,786
0
0
348,810Periodic statements
12,285
687,960
110,565
4,643,730
0
0
5,331,690Error resolution
3,640
203,840
32,760
1,375,920
0
0
1,579,760Transaction receipts
47,198
2,643,088
424,785
17.840.970
0
0
20,484,058Preauthorized transfers
15,621
874,776
140,589
5,904,738
0
0
6,779,514Service provider notices
583
32,648
5,250
220,500
0
0
253,148ATM notices
10,420
583,520
93,778
3,938,676
0
0
4,522,196Electronic check conversion
2,452
137,312
22,068
926,856
0
0
1,064,168Overdraft services
800
44,800
7,200
302,400
0
0
347,200Gift cards
25,750
1,442,000
231,750
9,733,500
0
0
11,175,500Remittance transfers:Disclosures
144,600
8,097,600
1,301,400
54,658,800
0
0
62,756,400Error resolution
182,040
10,194,240
1,638,360
68,811,120
0
0
79,005,360Agent compliance
144,600
8,097,600
1,301,400
54,658,800
0
0
62,756,400Prepaid accounts and gov't. benefits:Disclosures
113,667
6,365,352
1,023,000
42,966,000
0
0
49,331,352Disclosures—updates
138
7,728
1,242
52,164
0
0
59,892Access to account information
11,018
617,008
99,165
4,164,930
0
0
4,781,938Error resolution
1,397
78,232
12,570
527,940
0
0
606,172Error resolution—followup
69
3,864
621
26,082
0
0
29,946Submission of agreements
29
1,624
259
10,878
0
0
12,502Updates to agreements
6
336
52
2,184
0
0
2,520Total Disclosures






311,824,884Total Recordkeeping and Disclosures






316,720,410
 3. Regulation M The CLA requires that covered entities provide consumers with accurate disclosure of the costs and terms of leases. Regulation M implements the CLA, establishing disclosure requirements to help consumers comparison shop and understand the terms of leases and recordkeeping requirements. It applies to vehicle lessors (such as auto dealers, independent leasing companies, and manufacturers' captive finance companies), computer lessors (such as computer dealers and other retailers), furniture lessors, various electronic commerce lessors, diverse types of lease advertisers, and others. Staff estimates that Regulation M's recordkeeping requirements affect approximately 30,203 firms within the FTC's jurisdiction leasing products to consumers at an average annual burden of one hour per firm, for a total of 30,203 hours. Burden Totals [18] *Recordkeeping:*
                     30,203 hours (3,513 + 26,690 carve-out); $1,649,088 ($191,814 + $1,457,274 carve-out), associated labor costs *Disclosures:*
                     71,750 hours (2,094 + 69,656 carve-out); $3,917,550 ($114,394 + $3,803,156 carve-out), associated labor costs Regulation M—Disclosures—Burden Hours
Disclosures
Setup/monitoring
Transaction-related
Total 
                             burden  
                             (hours)Respondents
Average 
                             burden per  
                             respondent  
                             (hours)
Total setup/ 
                             monitoring  
                             burden  
                             (hours)
Number of 
                             transactions
Average 
                             burden per  
                             transaction  
                             (minutes)
Total 
                             transaction  
                             burden  
                             (hours)Motor Vehicle Leases 1
26,690
1
26,690
4,000,000
.50
33,333
60,023Other Leases 2
3,513
.50
1,757
60,000
.25
250
2,007Advertising 3
14,615
.50
7,308
578,960
.25
2,412
9,720Total






71,7501
                         This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) 
                        *See*15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). While the number of respondents for vehicle leases has decreased with market changes, the number of vehicle lease transactions has remained about the same, compared to past FTC estimates. Leases up to $55,800 plus an annual adjustment are now covered. The resulting total burden has decreased.2
                         This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small appliances, furniture, and other transactions. (Only consumer leases for more than four months are covered.) 
                        *See*15 U.S.C. 1667(1); 12 CFR 1013.2(e)(1). The number of respondents has decreased, based on market changes in companies and types of transactions they offer; the number of such transactions has also declined, based on types of transactions offered that are covered by the CLA. Leases up to $55,800 plus an annual adjustment are now covered. The resulting total burden has decreased.3
                         Respondents for advertising have decreased as have lease advertisements, based on market changes, from past FTC estimates. The resulting total burden has decreased.
 
 
 Regulation M—Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total 
                             cost  
                             ($)Time 
                             (hours)
Cost 
                             ($56/hr.)
Time 
                             (hours)
Cost 
                             ($42/hr.)
Time 
                             (hours)
Cost 
                             ($17/hr.)Recordkeeping
27,183
$1,522,248
3,020
$126,840
0
0
$1,649,088Disclosures:Motor Vehicle Leases
54,021
3,025,176
6,002
252,084
0
0
3,277,260Other Leases
1,806
101,136
201
8,442
0
0
109,578Advertising
8,748
489,888
972
40,824
0
0
530,712Total Disclosures






3,917,550Total Recordkeeping and Disclosures






5,566,638
 4. Regulation Z The TILA was enacted to foster comparison credit shopping and informed credit decision making by requiring creditors and others to provide accurate disclosures regarding the costs and terms of credit to consumers.[19]
                    
                     Regulation Z implements the TILA, establishing disclosure requirements to assist consumers and recordkeeping requirements to assist agencies with enforcement. These requirements pertain to open-end and closed-end credit and apply to various types of entities, including mortgage companies; finance companies; auto dealerships; private education loan companies; merchants who extend credit for goods or services; credit advertisers; acquirers of mortgages; and others. Additional requirements also exist in the mortgage area, including for high cost mortgages, higher-priced mortgage loans,[20]
                    
                     ability to pay of mortgage consumers, mortgage servicing, loan originators, and certain integrated mortgage disclosures. FTC staff estimates that Regulation Z's recordkeeping requirements affect approximately 430,762 entities subject to the Commission's jurisdiction, at an average annual burden of 1.25 hours per entity with .25 additional hours per entity for 3,650 entities (ability to pay), and 5 additional hours per entity for 4,500 entities (loan originators). Burden Totals *Recordkeeping:*
                     561,866 hours (484,961 + 76,905 carve-out); $10,956,397 ($9,456,749 + $1,499,648 carve-out), associated labor costs *Disclosures:*
                     7,854,575 hours (6,838,256 + 1,016,319 carve-out; $318,601,732 ($274,493,500 + $44,108,232 carve-out), associated labor costs Regulation Z—Disclosures—Burden Hours
Disclosures 1
Setup/monitoring
Transaction-related
Total 
                             burden  
                             (hours)Respondents
Average 
                             burden per  
                             respondent  
                             (hours)
Total setup/ 
                             monitoring  
                             burden  
                             (hours)
Number of 
                             transactions
Average 
                             burden per  
                             transaction  
                             (minutes)
Total 
                             transaction  
                             burden  
                             (hours)Open-end credit:Initial terms
23,650
.75
17,738
10,500,600
.375
65,629
83,367Initial terms—prepaid accounts
3
2
                             4 × 1
12
3
                             3 × 78,667
.125
492
504Rescission notices
750
.5
375
3,750
.25
16
391Subsequent disclosures
4,650
.75
3,488
23,250,000
.188
72,850
76,338Subsequent disclosures—prepaid accounts
3
4
                             4 × 1
12
5
                             3 × 78,667
.0625
246
258Periodic statements
23,650
.75
17,738
788,325,450
.0938
1,232,415
1,250,153Periodic statements—prepaid accounts
3
6
                             40 × 1
120
7
                             3 × 944,000
.03125
1,475
1,595Error resolution
23,650
.75
17,738
2,104,850
6
210,485
228,223Error resolution—prepaid accounts followup
3
8
                             4 × 1
12
9
                             3 × 1,180
15
885 897Credit and charge card accounts
10,250
.75
7,688
5,125,000
.375
32,031
39,719Credit and charge card accounts—prepaid accounts
3
10
                             4 × 1
12
11
                             3 × 12
240
144
156Settlement of estate debts
23,650
.75
17,738
496,650
.375
3,104
20,842Special credit card requirements
10,250
.75
7,688
5,125,000
.375
32,031
39,719Home equity lines of credit
750
.5
375
5,250
.25
22
397Home equity lines of credit high-cost mortgages
250
2
500
1,500
2
50
550College student credit card marketing—ed. institutions
1,350
.5
675
81,000
.25
338
1,013College student credit card marketing—card issuer reports
150
.75
113
4,500
.75
56
169Posting and reporting of credit card agreements
10,250
.75
7,688
5,125,000
.375
32,031
39,719Posting and reporting of prepaid account agreements
3
12
                             .75 × 1
2
13
                             3 × 5
2.5
1
3Advertising
38,650
.75
28,988
115,950
.75
1,449
30,437Advertising—prepaid accounts
3
14
                             20 × 1
60
N/A


60Advertising—prepaid accounts Updates
3
15
                             0.2 × 5
3
N/A


3Sale, transfer, or assignment of mortgages
500
.5
250
500,000
.25
2,083
2,333Appraiser misconduct reporting
301,150
.75
225,863
6,023,000
.375
37,644
263,507Mortgage servicing 16
1,500
.75
1,125
150,000
.5
1,250
2,375( print page 35483)Loan originators
2,250
2
4,500
22,500
5
1,875
6,375Closed-end credit:Credit disclosures
280,762
.75
210,572
112,304,800
2.25
4,211,430
4,422,002Rescission notices
3,650
.5
1,825
5,475,000
1
91,250
93,075Redisclosures
101,150
.5
50,575
505,750
2.25
18,966
69,541Integrated mortgage disclosures
3,650
10
36,500
10,950,000
3.5
638,750
675,250Variable rate mortgages
3,650
1
3,650
365,000
1.75
10,646
14,296High cost mortgages
1,750
1
1,750
43,750
2
1,458
3,208Higher priced mortgages
1,750
1
1,750
14,000
2
467
2,217Reverse mortgages
3,025
.5
1,513
15,125
1
252
1,765Advertising
205,762
.5
102,881
2,057,620
1
34,294
137,175Private education loans
75
.5
38
30,000
1.5
750
788Sale, transfer, or assignment of mortgages
48,850
.5
24,425
2,442,500
.25
10,177
34,602Ability to pay/qualified mortgage
3,650
.75
2,738
0
0
0
2,738Appraiser misconduct reporting
301,150
.75
225,863
6,023,000
.375
37,644
263,507Mortgage servicing 17
3,650
1.5
5,475
730,000
2.75
33,458
38,933Loan originators
2,250
2
4,500
22,500
5
1,875
6,375Total open-end credit






2,089,103Total closed-end credit






5,765,472Total credit






7,854,5751
                         Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $55,800 plus an annual adjustment (except that real estate credit and private education loans are covered regardless of amount). For most disclosure types listed in this table, FTC staff has reduced prior PRA burden estimates due to business shifts and other market changes. In the case of mortgage servicing (open- and closed-credit), however, staff has increased burden estimates per respondent due to amendments to Regulation Z. In addition, due to Regulation Z's new requirements for prepaid accounts with certain credit aspects, staff has added burden estimates for these items. However, the overall effect of these competing factors yields a net decrease from the FTC's prior reported estimate for open-end credit and for closed-end credit.2
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.3
                         This figure lists the number of entities followed by the number of responses or programs each.4
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.5
                         This figure lists the number of entities followed by the number of responses or programs each.6
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.7
                         This figure lists the number of entities followed by the number of responses or programs each.8
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.9
                         This figure lists the number of entities followed by the number of responses or programs each.10
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.11
                         This figure lists the number of entities followed by the number of responses or programs each.12
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.13
                         This figure lists the number of entities followed by the number of responses or programs each.14
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.15
                         Burden hours are on a per program basis. Individual burden hours are listed first, followed by the number of programs.16
                         Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, which in some instances can affect open-end credit, increasing burden per respondent. However, the estimated number of entities and transactions under FTC jurisdiction is reduced, thereby reducing aggregate estimated burden compared to prior FTC estimates.17
                         Regulation Z has expanded various mortgage servicing requirements for successors-in-interest, and periodic statement requirements including for consumers in bankruptcy, among other things, affecting closed-end credit, increasing burden per respondent. However, the estimated number of entities and transactions under FTC jurisdiction is reduced, thereby reducing aggregate estimated burden compared to prior FTC estimates.
 Regulation Z—Recordkeeping and Disclosures—Cost
Required task
Managerial
Skilled technical
Clerical
Total 
                             Cost  
                             ($)Time 
                             (hours)
Cost 
                             ($56/hr.)
Time 
                             (hours)
Cost 
                             ($42/hr.)
Time 
                             (hours)
Cost 
                             ($17/hr.)Recordkeeping
0
$0
56,187
$2,359,854
505,679
$8,596,543
$10,956,397Open-end credit Disclosures:Initial terms
8,337
466,872
75,030
3,151,260
0
0
3,618,132Initial terms—prepaid accounts
50
2,800
454
19,068
0
0
21,868Rescission notices
39
2,184
352
14,784
0
0
16,968Subsequent disclosures
7,634
427,504
68,704
2,885,568
0
0
3,313,072Subsequent disclosures—prepaid accounts
26
1.456
232
9,744
0
0
11,200Periodic statements
125,015
7,000,840
1,125,138
47,255,796
0
0
54,256,636Periodic statements—prepaid accounts
159
8,904
1436
60,312
0
0
69.216Error resolution
22,822
1,278,032
205,401
8,626,842
0
0
9,904,874Error resolution—prepaid accounts followup
90
5,040
807
33.894
0
0
38,934Credit and charge card accounts
3,972
222,432
35,747
1,501,374
0
0
1,723,806Credit and charge card accounts—prepaid accounts
16
896
140
5,880
0
0
6,776Settlement of estate debts
2,084
116,704
18,758
787,836
0
0
904,540Special credit card requirements
3,972
222,432
35,747
1,501,374
0
0
1,723,806Home equity lines of credit
40
2,240
357
14,994
0
0
17,234Home equity lines of credit—high cost mortgages
55
3,080
495
20,790
0
0
23,870College student credit card marketing—ed institutions
101
5,656
912
38,304
0
0
43,960College student credit card marketing—card issuer reports
17
952
152
6,384
0
0
7,336Posting and reporting of credit card agreements
3,972
222,432
35,747
1,501,374
0
0
1,723,806Posting and reporting of prepaid accounts
1
56
2
84
0
0
140Advertising
3,044
170,464
27,393
1,150,506
0
0
1,320,970( print page 35484)Advertising—prepaid accounts
6
336
54
2,268
0
0
2,604Advertising—prepaid accounts Updates
1
56
2
84
0
0
140Sale, transfer, or assignment of mortgages
233
13,048
2,100
88,200
0
0
101,248Appraiser misconduct reporting
26,351
1,475,656
237,156
9,960,552
0
0
11,436,208Mortgage servicing
238
13,328
2,137
89,754
0
0
103,082Loan originators
638
35,728
5,737
240,954
0
0
276,682Total open-end credit






90,667,108Closed-end credit Disclosures:Credit disclosures
442,200
2,476,300
3,979,802
167,151,684
0
0
169,627,984Rescission notices
9,308
521,248
83,767
3,518,214
0
0
4,039,462Redisclosures
6,954
389,424
62,587
2,628,654
0
0
3,018,078Integrated mortgage disclosures
67,525
3,781,400
607,725
25,524,450
0
0
29,305,850Variable rate mortgages
1,430
80,080
12,866
540,372
0
0
620,452High cost mortgages
321
17,976
2,887
121,254
0
0
139,230Higher priced mortgages
222
12,432
1,995
83,790
0
0
96,222Reverse mortgages
177
9,912
1,588
66,696
0
0
76,608Advertising
13,718
768,208
123,457
5,185,194
0
0
5,953,402Private education loans
79
4,424
709
29,778
0
0
34,202Sale, transfer, or assignment of mortgages
3,460
193,760
31,142
1,307,964
0
0
1,501,724Ability to pay/qualified mortgage
274
15,344
2,464
103,488
0
0
118,832Appraiser misconduct reporting
26,351
1,475,656
237,156
9,960,552
0
0
11,436,208Mortgage servicing
3,893
218,008
35,040
1,471,680
0
0
1,689,688Loan originators
638
35,728
5,737
240,954
0
0
276,682Total closed-end credit






227,934,624Total Disclosures






318,601,732Total Recordkeeping and Disclosures
329,558,129
 *Request for Comment:*
                     You can file a comment online or on paper. For the FTC to consider your comment, we must receive it on or before August 27, 2018. Write “Regs BEMZ, PRA Comments, P084812” on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the public FTC website, at 
                    *http://www.ftc.gov/​os/​publiccomments.shtm.* 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, or to send them to the Commission by courier or overnight service. 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. When this Notice appears at 
                    *http://www.regulations.gov/​#!home,*
                     you also may file a comment through that website. If you file your comment on paper, write “Regs BEMZ, PRA Comments, P084812” on your comment and on the envelope, and mail it to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex J), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW, 5th Floor, Suite 5610 (Annex J), Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service. Because your comment will be placed on the publicly accessible FTC website at 
                    *https://www.ftc.gov/​*, you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security number; date of birth; driver's license number or other state identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure that your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any “trade secret or any commercial or financial information which . . . is privileged or confidential”—as provided by Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled “Confidential,” and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. 
                    *See*
                     FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on the public FTC website—as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment from the FTC website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request. 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 August 27, 2018. For information on the Commission's privacy policy, 
                    ( print page 35485)
                    including routine uses permitted by the Privacy Act, see 
                    *https://www.ftc.gov/​site-information/​privacy-policy.*
                     For supporting documentation and other information underlying the PRA discussion in this Notice, see 
                    *http://www.reginfo.gov/​public/​jsp/​PRA/​praDashboard.jsp*. 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 can also be sent by email to 
                    *wliberante@omb.eop.gov*. Heather Hippsley, Acting Principal Deputy General Counsel.


# Footnotes

1.
    
                         12 CFR 1002 (Reg. B) (76 FR 79442, Dec. 21, 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR 1005 (Reg. E) (76 FR 81020, Dec. 27, 2011); (81 FR 25323, Apr. 28, 2016) 12 CFR 1013 (Reg. M) (76 FR 78500, Dec. 19, 2011) (81 FR 25323, Apr. 28, 2016); 12 CFR 1026 (Reg. Z) (76 FR 79768, Dec. 22, 2011) (81 FR 25323, Apr. 28, 2016). 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 235, rather than EFTA's implementing Regulation E). Back to Citation
 4.
    
                         This covers a myriad of entities that provide credit to consumers, as well as BCFP retaining concurrent jurisdiction over certain types of motor vehicle dealers. 
                        *See*
                         Dodd-Frank Act § 1029(a), as limited by subsection (b) as to motor vehicle dealers. Subsection (b) does not preclude BCFP 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 to consumers, where the contract is not routinely assigned to unaffiliated third parties. Back to Citation
 5.
    
                         
                        *See*
                         Dodd-Frank Act § 1029(a)-(c) regarding motor vehicle dealers, as limited by subsection (b) 
                        
                        concerning motor vehicle dealers engaged in direct financing for vehicles they sell, lease, or service. Subsection (c) recognizes the FTC's ongoing enforcement authority over motor vehicle dealers predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both, including those that, among other things, assign their contracts to unaffiliated third parties. The FTC's enforcement authority also includes state-chartered credit unions. In varying ways, other federal agencies also have enforcement authority over state-chartered credit unions. For example, for large credit unions (exceeding $10 billion in assets), the BCFP has certain authority. The National Credit Union Administration also has certain authority for state-chartered federally insured credit unions, and it additionally provides insurance for certain state-chartered credit unions through the National Credit Union Share Insurance Fund and examines state-chartered credit unions for various purposes. 
                        *See generally*
                         Dodd-Frank Act, §§ 1061, 1025, 1026. Back to Citation
 6.
    
                         As of the third quarter of 2017, there was approximately the following number of State-chartered credit unions: 2,347 state-chartered credit unions—2,106 federally insured, 125 privately insured, and 116 in Puerto Rico insured by a quasi-governmental entity. Because of the difficulty in parsing out PRA burden for such entities in view of the overlapping agency authority (
                        *see supra*
                         note 5), the FTC's estimates include PRA burden for all state-chartered credit unions (rounded to 2,300). Similarly, because it is not practicable for PRA purposes to estimate the portion of motor vehicle dealers that engage in one form of financing versus another (and that would or would not be subject to BCFP oversight), the FTC staff's “carve-out” for this PRA burden analysis reflects a general estimated volume of motor vehicle dealers. These attributions of burden estimation for motor vehicle dealers and state-chartered credit unions do not bear on actual enforcement authority. Back to Citation
 7.
    
                         PRA “burden” does not include “time, effort, and financial resources” expended in the normal course of business, regardless of any regulatory requirement. 
                        *See*5 CFR 1320.3(b)(2). Back to Citation
 8.
    
                         For example, large companies may use computer-based and/or electronic means to provide required disclosures, including issuing some disclosures en masse, 
                        *e.g.,*
                         notice of changes in terms. Smaller companies may have less automated compliance systems but may nonetheless rely on electronic mechanisms for disclosures and recordkeeping. Regardless of size, some entities may utilize compliance systems that are fully integrated into their general business operational system; if so, they may have minimal additional burden. Other entities may have incorporated fewer of these approaches into their systems and thus may have a higher burden. Back to Citation
 9.
    
                         The Commission generally does not have jurisdiction over banks, thrifts, and federal credit unions under the applicable regulations. Back to Citation
 10.
    
                         These inputs are based broadly on mean hourly data found within the “Bureau of Labor Statistics, Economic News Release,” March 31, 2017, Table 1, “National employment and wage data from the Occupational Employment Statistics survey by occupation, May 2016.” 
                        *http://www.bls.gov/​news.release/​ocwage.t01.htm.* Back to Citation
 11.
    
                         
                        *See supra*
                         note 7 and accompanying text. Back to Citation
 12.
    
                         
                        *See*5 CFR 1320.4(a) (excluding information collected in response to, among other things, a 
                        
                        federal civil action or “during the conduct of an administrative action, investigation, or audit involving an agency against specific individuals or entities”). Back to Citation
 13.
    
                         Section 1071 of the Dodd-Frank Act amended the ECOA to require financial institutions to collect and report information concerning credit applications by women- or minority-owned businesses and small businesses, effective on the July 21, 2011 transfer date. Both the BCFP and the Board have exempted affected entities from complying with this requirement until a date set by the prospective final rules these agencies issue to implement it. The Commission will address PRA burden for its enforcement of the requirement after the BCFP and the Board have issued the associated final rules. Back to Citation
 14.
    
                         Regulation B contains model forms that creditors may use to gather and retain the required information. Back to Citation
 15.
    
                         In contrast to banks, for example, entities under FTC jurisdiction are not subject to audits by the FTC for compliance with Regulation B; rather they may be subject to FTC investigations and enforcement actions. This may impact the level of self-testing (as specifically defined by Regulation B) in a given year, and staff has sought to address such factors in its burden estimates. Back to Citation
 16.
    
                         While the rule also requires the creditor to provide a short written disclosure regarding the appraisal process, the disclosure is provided by the BCFP, and is thus not a “collection of information” for PRA purposes. 
                        *See*5 CFR 1320.3(c)(2). Accordingly, it is not included in burden estimates below. Back to Citation
 17.
    
                         The disclosure may be provided orally or in writing. The model form provided by Regulation B assists creditors in providing the written disclosure, which helps to reduce burden. Back to Citation
 18.
    
                         Recordkeeping and disclosure burden estimates for Regulation M are more substantial for motor vehicle leases than for other leases, including burden estimates based on market changes and regulatory definitions of coverage. Based on industry information, the estimates for recordkeeping and disclosure costs assume the following: 90% managerial, and 10% skilled technical. As noted above, for purposes of PRA burden calculations for Regulations B, E, M, and Z, and given the different types of motor vehicle dealers, the FTC is including in its estimates burden for all of them. Back to Citation
 19.
    
                         On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (Act), Public Law 115-174. Among other things, the Act amends the TILA in several respects, and will be implemented by the BCFP through amendments to Regulation Z. The Commission will address PRA burden for its enforcement of the requirements after the BCFP has issued the associated final rules. Back to Citation
 20.
    
                         While Regulation Z also requires the creditor to provide a short written disclosure regarding the appraisal process for higher-priced mortgage loans, the disclosure is provided by the BCFP. As a result, it is not a “collection of information” for PRA purposes (
                        *see*5 CFR 1320.3(c)(2)). It is thus excluded from the burden estimates below. Back to Citation


[FR Doc. 2018-15979 Filed 7-25-18; 8:45 am] BILLING CODE 6750-01-P