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[Federal Register Volume 89, Number 226 (Friday, November 22, 2024)]
[Notices]
[Pages 92685-92688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27458]

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FEDERAL TRADE COMMISSION

Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension

AGENCY: Federal Trade Commission.

ACTION: Notice.

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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') 
requests that the Office of Management and Budget (``OMB'') extend for 
three years the current Paperwork Reduction Act (``PRA'') clearances 
for information collection requirements contained in four consumer 
financial regulations enforced by the Commission. Those clearances 
expire on November 30, 2024.

DATES: Comments must be filed by December 23, 2024.

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. Written comments and 
recommendations for the proposed information collection should be sent 
within 30 days of publication of this notice to www.reginfo.gov/public/do/PRAMain. Find this particular information collection by selecting 
``Currently under 30-day Review--Open

[[Page 92686]]

for Public Comments'' or by using the search function. The reginfo.gov 
web link is a United States Government website produced by the Office 
of Management and Budget (OMB) and the General Services Administration 
(GSA). Under PRA requirements, OMB's Office of Information and 
Regulatory Affairs (OIRA) reviews Federal information collections.

FOR FURTHER INFORMATION CONTACT: Carole Reynolds ([email protected]) or 
Stephanie Rosenthal ([email protected]), 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).
    Type of Review: Extension without change of currently approved 
collection, except for new Regulation B requirements, which derive from 
statutory amendments.
    Affected Public: Private Sector: Businesses and other for-profit 
entities.
    Abstract: Under the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (``Dodd-Frank Act''), Public Law 111-203, 124 Stat. 1376 
(2010), almost all rulemaking authority for the ECOA, EFTA, CLA, and 
TILA transferred from the Board of Governors of the Federal Reserve 
System (``Board'') to the Consumer Financial Protection Bureau 
(``CFPB'') on July 21, 2011 (``transfer date''). To implement this 
transferred authority, the CFPB published 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\
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    \1\ 12 CFR part 1002 (Reg. B) (81 FR 25323, Apr. 28, 2016); 12 
CFR part 1005 (Reg. E) (81 FR 25323, Apr. 28, 2016); 12 CFR part 
1013 (Reg. M) (81 FR 25323, Apr. 28, 2016); 12 CFR part 1026 (Reg. 
Z) (81 FR 25323, Apr. 28, 2016).
    \2\ Generally, these are dealers ``predominantly engaged in the 
sale and servicing of motor vehicles, the leasing and servicing of 
motor vehicles, or both.'' See Dodd-Frank Act, sec. 1029(a), (c), 12 
U.S.C. 5519(a), (c).
    \3\ See Dodd-Frank Act, sec. 1075, 15 U.S.C. 1693 (these 
requirements are implemented through Board Regulation II, 12 CFR 
part 235, rather than EFTA's implementing Regulation E).
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    As a result of the Dodd-Frank Act, the FTC and the CFPB generally 
share the authority to enforce Regulations B, E, M, and Z for entities 
for which the FTC had enforcement authority before the Act, except for 
certain motor vehicle dealers.\4\ Because of this shared enforcement 
jurisdiction, the two agencies have divided the FTC's previously-
cleared PRA burden estimates between them,\5\ except that the FTC has 
assumed all of the burden estimates associated with motor vehicle 
dealers \6\ and state-chartered credit unions, and has added estimates 
for the CFPB's new requirements under Regulation B. The division of PRA 
burden hours not attributable to motor vehicle dealers and state-
chartered credit unions is reflected in the CFPB's PRA clearance 
requests to OMB, as well as in the FTC's burden estimates below.
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    \4\ The FTC's enforcement authority includes state-chartered 
credit unions; other federal agencies also have various enforcement 
authority over credit unions. For example, for large credit unions 
(exceeding $10 billion in assets), the CFPB has certain authority. 
The National Credit Union Administration also has certain authority 
for state-chartered federally insured credit unions, and it 
additionally provides insurance for certain state-chartered credit 
unions through the National Credit Union Share Insurance Fund and 
examines credit unions for various purposes. There are approximately 
thirteen state-chartered credit unions exceeding $10 billion in 
assets, and the CFPB assumes PRA burden for those entities. As of 
the fourth quarter of 2023, there were approximately 1,936 state-
chartered credit unions with federal insurance; there also have been 
an estimated 112 or more which were privately insured, and an 
estimated 100 or more in Puerto Rico which were insured by a quasi-
governmental entity. Because of the difficulty in parsing out PRA 
burden for such entities in view of the overlapping authority, the 
FTC's figures include PRA burden for all state-chartered credit 
unions, unless otherwise noted. However, in view of fluctuations 
that began due to COVID-19 and have continued and to avoid 
undercounting, we have retained the prior estimate of 2,300 state-
chartered credit unions, unless otherwise stated. As noted above, 
the CFPB's figures as to state-chartered credit unions include 
burden for those entities exceeding $10 billion in assets. See 
generally Dodd-Frank Act, secs. 1061, 1025, 1026. This attribution 
does not change actual enforcement authority. We also have retained 
the prior burden hours generally in the estimates below, in view of 
these considerations, adding only those applicable for new 
requirements issued by the CFPB for Regulation B, issued in 
implementation of the Dodd-Frank Act, sec. 1071, amending the Equal 
Credit Opportunity Act, codified at 15 U.S.C. 1691c-2, discussed 
below.
    \5\ The CFPB also factors into its burden estimates respondents 
over which it has jurisdiction but the FTC does not.
    \6\ See Dodd-Frank Act sec. 1029, 12 U.S.C. 5519(a), as to motor 
vehicle dealers, 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 PRA burden analysis reflects a general 
estimated volume of motor vehicle dealers. This attribution does not 
change actual enforcement authority.
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    Pursuant to the Dodd-Frank Act, the FTC generally has sole 
authority to enforce Regulations B, E, M, and Z regarding certain motor 
vehicle dealers predominantly engaged in the sale and servicing of 
motor vehicles, the leasing and servicing of motor vehicles, or both, 
that, among other things, assign their contracts to unaffiliated third 
parties.\7\ Because the FTC has exclusive jurisdiction to enforce these 
rules for such motor vehicle dealers and retains its concurrent 
authority with the CFPB for other types of motor vehicle dealers, and 
in view of the different types of motor vehicle dealers, the FTC 
retains the entire PRA burden for motor vehicle dealers in the burden 
estimates below.
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    \7\ See Dodd-Frank Act, sec. 1029, 12 U.S.C. 5519(a), (c).
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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 diverse others. In 2023, the CFPB amended 
Regulation B, to create subparts A and B, in implementing amendments 
mandated by section 1071 of the Dodd Frank Act, 12 U.S.C. 1691c-2, 
pertaining to small business lending, including for small businesses 
owned by women or minorities.\8\ As a result,

[[Page 92687]]

Regulation B, subpart A, now contains the prior Regulation B 
requirements; Regulation B, subpart B, contains the new small business 
lending requirements.\9\ The total burden hours and labor costs for 
Regulation B are shown below.
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    \8\ See CFPB, Final Rule, Small Business Lending Under the Equal 
Credit Opportunity Act (Regulation B) (CFPB Rule), 88 FR 35150 (May 
31, 2023), available at https://www.govinfo.gov/content/pkg/FR-2023-05-31/pdf/2023-07230.pdf. The CFPB generally refers to these 
requirements as those pertaining to ``small business lending.'' See 
CFPB Rule, 88 FR at 35150. That term is also used herein.
    The Federal Reserve Board has not issued its related rule for 
these requirements covering certain motor vehicle dealers pursuant 
to the Dodd Frank Act, sec. 1029, 12 U.S.C. 5519. In May 2024, 
following the U.S. Supreme Court ruling in Consumer Fin. Protection 
Bureau v. Community Fin. Servs. Ass'n of Am., Ltd. (CFPB v. CFSA), 
No. 22-448, 2024 WL 2193873 (U.S.S.C. May 16, 2024), available at 
https://www.supremecourt.gov/opinions/23pdf/22-448_o7jp.pdf, the 
CFPB issued informal guidance extending the compliance dates for the 
small business lending rule and indicated it would issue an interim 
final rule; on June 25, 2024, the CFPB issued an interim final rule, 
extending the compliance dates accordingly. See CFPB, Small Business 
Lending Rulemaking, available at https://www.consumerfinance.gov/1071-rule/; 89 FR 55024 (July 3, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-07-03/pdf/2024-14396.pdf, 
corrected, 89 FR 76713 (Sept. 19, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-09-19/pdf/2024-21265.pdf. The 
FTC has hereunder included estimates of burden for these 
requirements, based on currently available information, including 
the supplementary information with the CFPB Rule, 88 FR 35150, and 
its related CFPB Supporting Statement.
    \9\ In implementing Regulation B, subpart B, the CFPB noted that 
merchant cash advances are covered under that part, and are 
``credit'' subject to Regulation B (and ECOA). See, e.g., 88 FR 
35223. When applicable, these entities (to the extent they are 
``creditors'' under subpart A) also apparently would be subject to, 
for example, the requirement to provide notices whenever they take 
adverse action, such as denial of a credit application. The CFPB 
estimates about 100 merchant cash advance providers as active in the 
small business lending market. See CFPB Rule, 88 FR 35164. The FTC 
estimates below cover those providers as ``creditors'' for subpart A 
and re applicable transactions. As noted above, in view of 
fluctuations that occurred with COVID-19 and have continued (and 
with respect to which the Commission did not reduce its prior burden 
estimates to avoid undercounting, despite varied market contractions 
and shifts), these entities are included within the burden estimates 
below.
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    Estimated Annual Burden Hours: 3,877,492 hours (Total).
    Recordkeeping: 1,296,378 hours.
    Disclosures and Reporting: 2,581,114 hours.
    Estimated Annual Labor Costs: $159,000,057 (Total).
    Recordkeeping: $32,783,491.
    Disclosures and Reporting: $126,216,566.
    Estimated Annual Non-Labor Costs: A range up to $6 million.\10\
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    \10\ The range is due to differences in the diverse covered 
entities and varied circumstances that can apply. The high end is 
almost certainly overinclusive as explained further in response #13 
(Estimated Capital and Other Non-Labor Costs) on Regulation B's 
Supporting Statement.
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2. Regulation E

    The EFTA requires that covered entities provide consumers with 
accurate disclosure of the costs, terms, and rights relating to 
electronic fund transfers (``EFTs'') 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, and others.
    Estimated Annual Burden Hours: Total: 7,435,956 hours.
    Recordkeeping: 251,053 hours.
    Disclosures: 7,184,903 hours.
    Estimated Annual Labor Costs: $363,192,555 (Total).
    Recordkeeping: $6,150,791.
    Disclosures: $357,041,764.
    Estimated Annual Non-Labor Costs: $0.

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.
    Estimated Annual Burden Hours: 101,953 hours (Total).
    Recordkeeping: 30,203 hours.
    Disclosures: 71,750 hours.
    Estimated Annual Labor Costs: $6,535,193 (Total).
    Recordkeeping: $1,936,018.
    Disclosures: $4,599,175.
    Estimated Annual Non-Labor Costs: $0.

4. Regulation Z

    The TILA was enacted to foster comparison credit shopping and 
informed credit decision-making by requiring creditors and others to 
provide accurate disclosures regarding the costs and terms of credit to 
consumers. Regulation Z implements the TILA, establishing disclosure 
requirements to assist consumers and recordkeeping requirements to 
assist agencies with enforcement. These requirements pertain to open-
end and closed-end credit and apply to various types of entities, 
including mortgage companies; finance companies; auto dealerships; 
private education loan companies; merchants who extend credit for goods 
or services; credit advertisers; acquirers of mortgages; and others. 
Additional requirements also exist in the mortgage area, including for 
high cost mortgages, higher-priced mortgage loans,\11\ ability to pay 
of mortgage consumers, mortgage servicing, loan originators, and 
certain integrated mortgage disclosures.
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    \11\ While Regulation Z also requires the creditor to provide a 
short written disclosure regarding the appraisal process for higher-
priced mortgage loans, the disclosure is provided by the CFPB. As a 
result, it is not a ``collection of information'' for PRA purposes 
(see 5 CFR 1320.3(c)(2)).
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    Estimated Annual Burden Hours: 8,416,441 (Total).
    Recordkeeping: 561,866 hours.
    Disclosures: 7,854,575 hours.
    Estimated Annual Labor Costs: $397,863,549 (Total).
    Recordkeeping: $13,765,727.
    Disclosures: $384,097,822.
    Estimated Annual Non-Labor Costs: $0.
    Request for Comment: On August 1, 2024, the Commission sought 
comment on the information collection requirements associated with 
Regulations B, E, M, and Z. 89 FR 62736 (Aug. 1, 2024). Eight comments 
were received. One comment supported the proposal, and stated that 
extension of clearance for these requirements and documentation of 
compliance is essential for the protection of consumers. Seven comments 
were unrelated to the proposal (and pertained to other issues, such as 
antitrust topics). Pursuant to the OMB regulations, 5 CFR part 1320, 
that implement the PRA, 44 U.S.C. 3501 et seq., the FTC is providing 
this second opportunity for public comment while seeking OMB approval 
to renew the pre-existing clearance for the Rule.
    Your comment--including your name and your state--will be placed on 
the public record of this proceeding. Because your comment will be made 
public, you are solely responsible for making sure that your comment 
does not include any sensitive personal information, such as 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, 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

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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.

Josephine Liu,
Assistant General Counsel for Legal Counsel.
[FR Doc. 2024-27458 Filed 11-21-24; 8:45 am]
BILLING CODE 6750-01-P
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