[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10584-10591]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5113]


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FEDERAL TRADE COMMISSION


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Notice.

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SUMMARY: The information collection requirements described below will 
be submitted to the Office of Management and Budget (``OMB'') for 
review, as required by the Paperwork Reduction Act (``PRA''). The FTC 
is seeking public comments on its proposal to extend through March 31, 
2012, the current PRA clearances for information collection 
requirements contained in four consumer financial regulations 
promulgated by the Federal Reserve Board and enforced by the 
Commission. Those clearances expire on March 31, 2009.

DATES: Comments must be received on or before April 10, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Regs BEMZ, 
PRA Comment, FTC File No. P084812'' to facilitate the organization of 
comments. Please note that comments will be placed on the public record 
of this proceeding--including on the publicly accessible FTC website, 
at (http://www/ftc.gov/os/publiccomments.shtm) -- and therefore should 
not include any sensitive or confidential information. In particular, 
comments should not include any sensitive personal information, such as 
an individual'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. Comments also should not include any sensitive 
health information, such as medical records or other individually 
identifiable health information. In addition, comments should not 
include any ``[t]rade secrets and commercial or financial information 
obtained from a person and privileged or confidential . . . ,'' as 
provided in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). 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).\1\
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    \1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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    Because paper mail addressed to the FTC is subject to delay to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://secure.commentworks.com/ftc-RegsBEMZ) (and following the instructions 
on the web-based form). To ensure that the Commission considers an 
electronic comment, you must file it on the web-based form at the 
weblink (https://secure.commentworks.com/ftc-RegsBEMZ). If this Notice 
appears at (http://www.regulations.gov/search/index.jsp), you may also 
file an electronic comment through that website. The Commission will 
consider all comments that regulations.gov forwards to it.
    A comment filed in paper form should include the ``Regs BEMZ, PRA 
Comment, FTC File No. P084812`` reference both in the text and on the 
envelope, and should be mailed or

[[Page 10585]]

delivered to the following address: Federal Trade Commission, Office of 
the Secretary, Room H-135 (Annex J), 600 Pennsylvania Avenue NW, 
Washington, DC 20580. The FTC is requesting that any comment filed in 
paper form be sent by courier or overnight service, if possible, 
because U.S. postal mail in the Washington area and at the Commission 
is subject to delay due to heightened security precautions.
    All comments should additionally be submitted to: Office of 
Information and Regulatory Affairs of OMB, Attention: Desk Officer for 
the Federal Trade Commission. Comments should be submitted via 
facsimile to (202) 395-5167, because U.S. Postal Mail is subject to 
lengthy delays due to heightened security precautions.
    The FTC Act and other laws 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, whether filed in paper or electronic 
form. Comments received will be available to the public on the FTC 
website, to the extent practicable, at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of discretion, the Commission makes 
every effort to remove home contact information for individuals from 
the public comments it receives before placing those comments on the 
FTC website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the proposed information requirements should be addressed to 
Carole Reynolds or James Chen, Attorneys, Division of Financial 
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600 
Pennsylvania Ave., N.W., Washington, D.C. 20580, (202) 326-3230 or 
(202) 326-2659.

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).

    Each of these four rules impose certain recordkeeping and 
disclosure requirements associated with providing credit or with other 
financial transactions. As detailed below, the FTC staff has calculated 
the PRA burden for each rule based on the compliance costs of entities 
over which the FTC has jurisdiction. All of these rules require covered 
entities to keep certain records. FTC staff believes that these 
entities likely would retain these records in the normal course of 
business even absent the recordkeeping requirements in the rules.\2\ 
Covered entities, however, may incur some burden associated with 
ensuring that they do not prematurely dispose of relevant records 
(i.e., during the period of time when they are required to retain 
records by the applicable rule).
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    \2\ PRA ``burden'' does not include effort expended in the 
ordinary course of business, regardless of any regulatory 
requirement. 5 CFR 1320.3(b)(2).
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    Disclosure requirements involve both set-up and monitoring costs as 
well as certain transaction-specific costs. ``Set-up'' burden, incurred 
by new entrants only, includes identifying the applicable disclosure 
requirements, determining compliance obligations, and designing and 
developing compliance systems and procedures. ``Monitoring'' burden, 
incurred by all covered entities, includes reviewing changes to 
regulatory requirements, making necessary revisions to compliance 
systems and procedures, and monitoring the ongoing operation of systems 
and procedures to ensure continued compliance. ``Transaction-related'' 
burden refers to the effort associated with providing the various 
required disclosures in individual transactions. While this burden 
varies with the number of transactions, the figures shown for 
transaction-related burden in the tables that follow are estimated 
averages.
    The actual range of compliance burden experienced by covered 
entities, and reflected in those averages, varies widely. Depending on 
the extent to which covered entities have developed computer-based 
systems and procedures for providing the required disclosures (and/or 
the extent to which entities utilize electronic transactions, 
communications, and/or electronic recordkeeping), and the efficacy of 
those systems and procedures, some entities may have little burden, 
while others may have a higher burden.\3\
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    \3\ For example, large companies may use computer-based and/or 
electronic means to provide required disclosures, including issuing 
some disclosures en masse, e.g., notices of changes in terms. 
Smaller companies may have less automated compliance systems but may 
nonetheless rely on electronic mechanisms for disclosures and 
recordkeeping. Regardless of size, some entities may utilize 
compliance systems that are fully integrated into their general 
business operational system; as such, they may have minimal 
additional burden. Other entities may have incorporated fewer of 
these approaches into their systems and may have a higher burden.
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    Calculating the burden associated with the four regulations' 
disclosure requirements is very difficult because of the highly diverse 
group of affected entities. The ``respondents'' included in the 
following burden calculations consist of credit and lease advertisers, 
creditors, financial institutions, service providers, certain 
government agencies and others involved in delivering electronic fund 
transfers (``EFTs'') of government benefits, and lessors.\4\ The burden 
estimates represent FTC staff's best assessment, based on its knowledge 
and expertise relating to the financial services industry. To derive 
these estimates, FTC staff considered the wide variations in covered 
entities': (1) size and location; (2) credit or lease products offered, 
extended, or advertised, and their particular terms; (3) types of EFTs 
used; (4) types and occurrences of adverse actions; (5) types of 
appraisal reports utilized; and (6) computer systems and electronic 
features of compliance operations.
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    \4\ The Commission generally does not have jurisdiction over 
banks, thrifts, and federal credit unions under the applicable 
regulations.
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    Because some covered entities make required disclosures in the 
ordinary course of business, these disclosures do not impose PRA burden 
on them. In addition, as noted above, some entities use computer-based 
and/or electronic means of providing the required disclosures, while 
others rely on methods requiring more manual effort.
    The cost estimates detailed below relate solely to labor costs, 
including the time necessary to train employees how to comply with the 
regulations. The applicable PRA requirements impose minimal capital or 
other non-labor costs, as affected entities generally have the 
necessary equipment for other business purposes. Similarly, FTC staff 
estimates that compliance with these rules entails minimal printing and 
copying costs beyond that associated with documenting financial 
transactions in the ordinary course of business.

[[Page 10586]]

1. Regulation B

    The ECOA prohibits discrimination in the extension of credit. The 
Board of Governors of the Federal Reserve System (``FRB'') promulgated 
Regulation B, 12 CFR 202, to implement the ECOA. Regulation B 
establishes disclosure requirements to assist customers in 
understanding their rights under the ECOA and recordkeeping 
requirements to assist in detecting unlawful discrimination and other 
violations. The FTC enforces the ECOA as to all creditors except those 
(such as federally chartered or insured depository institutions) that 
are subject to the regulatory authority of another federal agency.

    Estimated annual hours burden: 3,129,437 hours, rounded to the 
nearest thousand (1,153,500 recordkeeping hours + 1,975,937 disclosure 
hours)

    Recordkeeping: FTC staff estimates that Regulation B's general 
recordkeeping requirements affect 1,000,000 credit firms within the 
Commission's jurisdiction, at an average annual burden of one hour per 
firm, for a total of 1,000,000 hours. Staff also estimates that the 
requirement that mortgage creditors monitor information about race/
national origin, sex, age, and marital status imposes a maximum burden 
of one minute each\5\ for approximately 9 million credit 
applications,\6\ for a total of 150,000 hours. Staff also estimates 
that keeping records of self-testing pursuant to the regulation would 
affect 2,500 firms, with an average annual burden of one hour per firm, 
for a total of 2,500 hours, and that recordkeeping of any corrective 
action for self-testing would affect 250 firms in a given year, with an 
average annual burden of four hours per firm, for a total of 1,000 
hours. The total estimated recordkeeping burden is 1,153,500 hours.
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    \5\ Regulation B contains model forms that creditors may use to 
gather and retain the required information.
    \6\ The decrease in credit applications relative to prior FTC 
estimates is based on industry data regarding the approximate number 
of mortgage purchase and refinance originations.
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    Disclosure: Regulation B requires that creditors (i.e., entities 
that regularly participate in a credit decision, including setting the 
terms of the credit) provide notice whenever they take adverse action. 
It requires entities that extend various types of mortgage credit to 
provide a copy of the appraisal report to applicants or to notify them 
of their right to a copy of the report (and thereafter provide a copy 
of the report, upon the applicant's request). It 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 providing the 
information is optional, that the creditor will not take the 
information into account in any aspect of the credit transaction, and, 
if applicable, that the information will be noted by visual observation 
or surname if the applicant chooses not to provide it.\7\
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    \7\ The disclosure may be provided orally or in writing. 
Regulation B provides a model form to assist creditors in providing 
the written disclosure.
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    Regulation B applies to retailers, mortgage lenders, mortgage 
brokers, finance companies, utilities (for some requirements), and 
others. Below is FTC staff's best estimate of burden applicable to the 
wide spectrum of these entities within the FTC's jurisdiction.

                                                         Regulation B: Disclosures--Burden Hours
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                                                                       Setup/Monitoring\1\                   Transaction-related\2\
                                                            --------------------------------------------------------------------------------
                                                                                        Total Setup/                                            Total
                        Disclosures                                          Average                                 Average       Total        Burden
                                                              Respondents   Burden per   Monitoring    Number of    Burden per  Transaction    (hours)
                                                                            Respondent     Burden    Transactions  Transaction     Burden
                                                                             (hours)      (hours)                    (minutes)    (hours)
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Credit history reporting                                          250,000          .25       62,500   125,000,000          .25      520,833      583,333
Adverse action notices                                          1,000,000           .5      500,000   200,000,000          .25      833,333    1,333,333
Appraisal notices                                                  20,000           .5       10,000     4,500,000          .25       18,750       28,750
Appraisal reports                                                  20,000           .5       10,000     4,500,000          .25       18,750       28,750
Self-test disclosures                                               2,500           .5        1,250       125,000          .25          521        1,771
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Total                                                        ............  ...........  ...........  ............  ...........  ...........    1,975,937
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\1\ With respect to appraisal notices and appraisal reports, the above figures reflect a decrease in applicable mortgage entities. The figures assume
  that approximately half of those entities (.5 x 40,000, or 20,000 businesses) would not otherwise provide this information and thus would be affected.
  The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
\2\ The above figures reflect a decrease in mortgage transactions compared to prior FTC estimates. They assume that half of applicable mortgage
  transactions (.5 x 9,000,000, or 4,500,000) would not otherwise provide the appraisal notices and reports and thus would be affected.


    Estimated annual cost burden: $83,456,633 rounded to the nearest 
thousand ($22,005,000 recordkeeping cost + $61,451,633 disclosure cost)

    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on the 
most currently available Bureau of Labor Statistics cost figures posted 
online.\8\
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    \8\ http://www.bls.gov/ncs/ncswage2007.htm (National 
Compensation Survey: Occupational Earnings in the United States 
2007, US Department of Labor released August 2008, Bulletin 2704, 
Table 3 (``Full-time civilian workers,'' mean and median hourly 
wages).
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    Recordkeeping: FTC staff estimates that the general recordkeeping 
responsibility of one hour per creditor would involve approximately 90 
percent clerical time and 10 percent skilled technical time. Keeping 
records of race/national origin, sex, age, and marital status requires 
an estimated one minute of skilled technical time. Keeping records of 
the self-test responsibility and of any corrective actions requires an 
estimated one hour and four hours, respectively, of skilled technical 
time. As shown in the table below, the total recordkeeping cost is 
$22,005,000.

[[Page 10587]]

    Disclosure: For each notice or information item listed, FTC staff 
estimates that the burden hours consist of 10 percent managerial time 
and 90 percent skilled technical time. As shown below, the total 
disclosure cost is $61,451,633.

                                                    Regulation B: Recordkeeping and Disclosures--Cost
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                                                                      Managerial             Skilled Technical             Clerical
                                                              ------------------------------------------------------------------------------ Total  Cost
                        Required Task                              Time     Cost  ($41/      Time     Cost  ($30/      Time     Cost  ($16/       ($)
                                                                 (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
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General recordkeeping                                                    0           $0      100,000   $3,000,000      900,000  $14,400,000  $17,400,000
Other recordkeeping                                                      0           $0      150,000   $4,500,000            0           $0   $4,500,000
Recordkeeping of test                                                    0           $0        2,500      $75,000            0           $0      $75,000
Recordkeeping of corrective action                                       0           $0        1,000      $30,000            0           $0      $30,000
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Recordkeeping                                            ...........  ...........  ...........  ...........  ...........  ...........  $22,005,000
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Credit history reporting                                            58,333   $2,391,653      525,000  $15,750,000            0           $0  $18,141,653
Adverse action notices                                             133,333   $5,466,653    1,200,000  $36,000,000            0           $0  $41,466,653
Appraisal notices                                                    2,875     $117,875       25,875     $776,250            0           $0     $894,125
Appraisal reports                                                    2,875     $117,875       25,875     $776,250            0           $0     $894,125
Self-test disclosure                                                   177       $7,257        1,594      $47,820            0           $0      $55,077
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Disclosures                                              ...........  ...........  ...........  ...........  ...........  ...........  $61,451,633
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Recordkeeping and Disclosures                            ...........  ...........  ...........  ...........  ...........  ...........  $83,456,633
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2. Regulation E

    The EFTA requires accurate disclosure of the costs, terms, and 
rights relating to EFT services provided to consumers. The FRB 
promulgated Regulation E, 12 CFR 205, to implement the EFTA. Regulation 
E establishes disclosure requirements to assist consumers and 
establishes recordkeeping requirements to assist in enforcing the EFTA. 
The FTC enforces the EFTA as to all entities providing EFT services, 
except those (such as federally chartered or insured depository 
institutions) that are subject to the regulatory authority of another 
federal agency.

    Estimated annual hours burden: 3,731,342 hours (600,000 
recordkeeping hours + approximately 3,131,342 disclosure hours)

    Recordkeeping: FTC staff estimates that Regulation E's 
recordkeeping requirements affect 600,000 firms within the Commission's 
jurisdiction that offer EFT services to consumers, at an average annual 
burden of one hour per firm, for a total of 600,000 hours.
    Disclosure: Regulation E applies to financial institutions 
(including certain retailers and various payees engaged in electronic 
commerce), service providers, various federal and state agencies 
offering EFTs, and others. Below is FTC staff's best estimate of burden 
applicable to this very broad spectrum of covered entities.

                                                         Regulation E: Disclosures--Burden Hours
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                                                                        Setup/Monitoring                       Transaction-related
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                                                                                        Total Setup/                                            Total
                       Disclosures\1\                                        Average                                 Average       Total        Burden
                                                              Respondents   Burden per   Monitoring    Number of    Burden per  Transaction    (hours)
                                                                            Respondent     Burden    Transactions  Transaction     Burden
                                                                             (hours)      (hours)                    (minutes)    (hours)
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Initial terms                                                     100,000           .5       50,000     1,000,000          .02          333       50,333
Change in terms                                                    25,000           .5       12,500    33,000,000          .02       11,000       23,500
Periodic statements                                               100,000           .5       50,000  1,200,000,00          .02      400,000      450,000
                                                                                                                0
Error resolution                                                  100,000           .5       50,000     1,000,000            5       83,333      133,333
Transaction receipts\2\                                           100,000           .5       50,000  5,000,000,00          .02    1,666,667    1,716,667
                                                                                                                0
Preauthorized transfers                                           500,000           .5      250,000     1,000,000          .25        4,167      254,167
Service provider notices                                          100,000          .25       25,000     1,000,000          .25        4,167       29,167
Govt. benefit notices                                              10,000           .5        5,000   100,000,000          .25      416,667      421,667
ATM\3\                                                                500          .25          125       250,000          .25        1,041        1,166
Electronic check conversion\4\                                    100,000           .5       50,000     3,500,000          .02        1,167       51,167
Payroll cards\5\                                                      100           .5           50         2,500            3          125          175
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Total                                                        ............  ...........  ...........  ............  ...........  ...........    3,131,342
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\1\ This reflects an increase in entities offering EFT services to consumers.

[[Page 10588]]

 
\2\ Regulation E now exempts EFTs of $15 or less from receipt requirements, which could decrease the burden of providing transaction receipts. However,
  use of the exemption could involve reprogramming costs. Due to the relatively recent change, the burden associated with transaction receipts has not
  been changed.
\3\ Regulation E now permits ATM operators that do not charge fees for services in all circumstances to disclose on signs that a fee ``may'' (rather
  than ``will'') be charged. However, making this change would require replacing existing signage, which could increase disclosure burden. Due to the
  relatively recent change and its voluntary nature, the burden associated with ATM notice has not been revised.
\4\ Regulation E now includes requirements for electronic check conversion.
\5\ Regulation E now includes requirements for payroll cards.


    Estimated annual cost burden: $107,825,124, rounded to the nearest 
thousand ($10,440,000 recordkeeping cost + $97,385,124 disclosure cost)

    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\9\
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    \9\ See note 8.
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    Recordkeeping: For the 600,000 recordkeeping hours, FTC staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown below, the total 
recordkeeping cost is $10,440,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown below, the 
total disclosure cost is $97,385,124.

                                                    Regulation E: Recordkeeping and Disclosures--Cost
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                                                                      Managerial             Skilled Technical             Clerical
                                                              ------------------------------------------------------------------------------ Total  Cost
                        Required Task                              Time     Cost  ($41/      Time     Cost  ($30/      Time     Cost  ($16/       ($)
                                                                 (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
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Recordkeeping                                                            0           $0       60,000   $1,800,000      540,000   $8,640,000  $10,440,000
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Disclosures:                                                   ...........  ...........  ...........  ...........  ...........  ...........  ...........
Initial terms                                                        5,033     $206,353       45,300   $1,359,000            0           $0   $1,565,353
Change in terms                                                      2,350      $96,350       21,150     $634,500            0           $0     $730,850
Periodic statements                                                 45,000   $1,845,000      405,000  $12,150,000            0           $0  $13,995,000
Error resolution                                                    13,333     $546,653      120,000   $3,600,000            0           $0   $4,146,653
Transaction receipts                                               171,667   $7,038,347    1,545,000  $46,350,000            0           $0  $53,388,347
Preauthorized transfers                                             25,417   $1,042,097      228,750   $6,826,500            0           $0   $7,904,597
Service provider notices                                             2,917     $119,597       26,250     $787,500            0           $0     $907,097
Govt. benefit notices                                               42,167   $1,728,874      379,500  $11,385,000            0           $0  $13,113,874
ATM notices                                                            116       $4,756        1,050      $31,500            0           $0      $36,256
Electronic check conversion                                          5,117     $209,797       46,050   $1,381,500            0           $0   $1,591,297
Payroll cards                                                           50       $2,050          125       $3,750            0           $0       $5,800
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Disclosures                                              ...........  ...........  ...........  ...........  ...........  ...........  $97,385,124
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Recordkeeping and Disclosures                            ...........  ...........  ...........  ...........  ...........  ...........  $107,825,12
                                                                                                                                                       4
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3. Regulation M

    The CLA requires accurate disclosure of the costs and terms of 
leases to consumers. The FRB promulgated Regulation M, 12 CFR 213, to 
implement the CLA. Regulation M establishes disclosure requirements 
that assist consumers in comparison shopping and in understanding the 
terms of leases and recordkeeping requirements that assist enforcement 
of the CLA. The FTC enforces the CLA as to all lessors and advertisers 
except those that are subject to the regulatory authority of another 
federal agency (such as federally chartered or insured depository 
institutions).

    Estimated annual hours burden: 225,000 hours, rounded to the 
nearest thousand (120,000 recordkeeping hours + 104,875 disclosure 
hours)

    Recordkeeping: FTC staff estimates that Regulation M's 
recordkeeping requirements affect approximately 120,000 firms within 
the Commission's jurisdiction that lease products to consumers, at an 
average annual burden of one hour per firm, for a total of 120,000 
hours.
    Disclosure: Regulation M applies to 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, diverse types of lease advertisers, and others. Below is FTC 
staff's best estimate of burden applicable to the wide spectrum of 
these entities within the FTC's jurisdiction.

[[Page 10589]]



                                                         Regulation M: Disclosures--Burden Hours
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                                                                        Setup/Monitoring                       Transaction-related
                                                            --------------------------------------------------------------------------------
                                                                                        Total Setup/                                            Total
                        Disclosures                                          Average                                 Average       Total        Burden
                                                              Respondents   Burden per   Monitoring    Number of    Burden per  Transaction    (hours)
                                                                            Respondent     Burden    Transactions  Transaction     Burden
                                                                             (hours)      (hours)                    (minutes)    (hours)
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Auto Leases\1\                                                     45,000          .75       33,750     2,000,000          .50       16,667       50,417
Other Leases\2\                                                    75,000          .50       37,500       750,000          .25        3,125       40,625
Advertising                                                        20,000          .50       10,500       800,000          .25        3,333       13,833
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Total                                                        ............  ...........  ...........  ............  ...........  ...........      104,875
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\1\ 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
  213.2(e)(1). This reflects a decrease in auto leasing entities and transactions, relative to prior FTC estimates.
\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 consumers leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
  213.2(e)(1). This reflects a decrease in consumer leasing entities and transactions, relative to prior FTC estimates.


    Estimated annual cost burden: $5,349,618, rounded to the nearest 
thousand ($2,088,000 recordkeeping cost + $3,261,618 disclosure cost)

    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\10\
---------------------------------------------------------------------------

    \10\ See note 8.
---------------------------------------------------------------------------

    Recordkeeping: For the 120,000 recordkeeping hours, FTC staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown in the table below, 
the total recordkeeping cost is $2,088,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown in the table 
below, the total disclosure cost is $3,261,618.

                                                    Regulation M: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Managerial             Skilled Technical             Clerical
                                                              ------------------------------------------------------------------------------ Total  Cost
                        Required Task                              Time     Cost  ($41/      Time     Cost  ($30/      Time     Cost  ($16/       ($)
                                                                 (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping                                                            0           $0       12,000     $360,000      108,000   $1,728,000   $2,088,000
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Disclosures                                                    ...........  ...........  ...........  ...........  ...........  ...........  ...........
Auto Leases                                                          5,042     $206,722       45,375   $1,361,250            0           $0   $1,567,972
Other Leases                                                         4,063     $166,583       36,562   $1,096,860            0           $0   $1,263,443
Advertising                                                          1,383      $56,703       12,450     $373,500            0           $0     $430,203
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Disclosures                                              ...........  ...........  ...........  ...........  ...........  ...........   $3,261,618
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Recordkeeping and Disclosures                            ...........  ...........  ...........  ...........  ...........  ...........   $5,349,618
--------------------------------------------------------------------------------------------------------------------------------------------------------

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 disclosure of the costs and terms of credit to 
consumers. The FRB promulgated Regulation Z, 12 CFR 226, to implement 
the TILA. Regulation Z establishes disclosure requirements to assist 
consumers and recordkeeping requirements to assist enforcement of the 
TILA. The FTC enforces the TILA as to all creditors and advertisers 
except those that are subject to the regulatory authority of another 
federal agency (such as federally chartered or insured depository 
institutions).

    Estimated annual hours burden: 12,415,413 hours, rounded to the 
nearest thousand (1,000,000 recordkeeping hours + 11,415,413 disclosure 
hours)

    Recordkeeping: FTC staff estimates that Regulation Z's 
recordkeeping requirements affect approximately 1,000,000 firms within 
the Commission's jurisdiction that offer credit, at an average annual 
burden of one hour per firm, for a total of 1,000,000 hours.
    Disclosure: Regulation Z disclosure requirements pertain to open-
end and closed-end credit. The Regulation applies to various types of 
entities, including mortgage companies; finance companies; auto 
dealerships; student loan companies; merchants who extend credit for 
goods or services, credit advertisers; and others. Below is FTC staff's 
best estimate of burden applicable to the wide spectrum of these 
entities within the FTC's jurisdiction.

[[Page 10590]]



                                                         Regulation Z: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Setup/Monitoring                       Transaction-related
                                                            --------------------------------------------------------------------------------
                                                                                        Total Setup/                                            Total
                       Disclosures\1\                                        Average                                 Average       Total        Burden
                                                              Respondents   Burden per   Monitoring    Number of    Burden per  Transaction    (hours)
                                                                            Respondent     Burden    Transactions  Transaction     Burden
                                                                             (hours)      (hours)                    (minutes)    (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit:                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Initial terms                                                      90,000           .5       45,000    40,000,000          .25      166,666      211,666
Rescission notices                                                  7,500           .5        3,750       400,000          .25        1,666        5,416
Change in terms                                                    20,000           .5       10,000   125,000,000         .125      260,416      270,416
Periodic statements                                                90,000           .5       45,000  3,500,000,00        .0625    3,645,833    3,690,833
                                                                                                                0
Error resolution                                                   90,000           .5       45,000     8,000,000            5      666,666      711,666
Credit and charge card accounts                                    50,000           .5       25,000    25,000,000          .25      104,166      129,166
Home equity lines of credit                                         7,500           .5        3,750     3,500,000          .25       14,583       18,333
Advertising                                                       200,000           .5      100,000       600,000           .5        5,000      105,000
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Closed-end credit:                                           ............  ...........  ...........  ............  ...........  ...........  ...........
Credit disclosures                                                700,000           .5      350,000   200,000,000          1.5    5,000,000    5,350,000
Rescission notices                                                 75,000           .5       37,500    30,000,000            1      500,000      537,500
Variable rate mortgages                                            70,000           .5       35,000     2,000,000          1.5       50,000       85,000
High rate/high-fee mortgages                                       40,000           .5       20,000       500,000          1.5       12,500       32,500
Reverse mortgages                                                  50,000           .5       25,000       175,000            1        2,917       27,917
Advertising\2\                                                    450,000           .5      225,000       900,000            1       15,000      240,000
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Total open-end credit                                        ............  ...........  ...........  ............  ...........  ...........    5,142,496
Total closed-end credit                                      ............  ...........  ...........  ............  ...........  ...........    6,272,917
                                                             ............  ...........  ...........  ............  ...........  ...........  ...........
Total credit                                                 ............  ...........  ...........  ............  ...........  ...........   11,415,413
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Generally, open-end and closed-end entities and transactions have decreased, but reverse mortgages have increased, relative to prior FTC estimates.
\2\ Advertising time for setup for open-end and closed-end mortgage transactions is estimated to increase based on new rules effective October 1, 2009,
  but the number of transactions have decreased, relative to prior FTC estimates.

    Estimated annual cost burden: $372,419,363, rounded to the nearest 
thousand ($17,400,000 recordkeeping cost + $355,019,363 disclosure 
cost)

    FTC staff calculated labor costs by applying appropriate hourly 
cost figures to the burden hours described above. The hourly rates used 
below ($41 for managerial or professional time, $30 for skilled 
technical time, and $16 for clerical time) are averages, based on 
current Bureau of Labor Statistics cost figures.\2\
---------------------------------------------------------------------------

    \2\ See note 8.
---------------------------------------------------------------------------

    Recordkeeping: For the 1,000,000 recordkeeping hours, FTC staff 
estimates that 10 percent of the burden hours require skilled technical 
time and 90 percent require clerical time. As shown in the table below, 
the total recordkeeping cost is $17,400,000.
    Disclosure: For each notice or information item listed, FTC staff 
estimates that 10 percent of the burden hours require managerial time 
and 90 percent require skilled technical time. As shown in the table 
below, the total disclosure cost is $355,019,363.

                                                    Regulation Z: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Managerial             Skilled Technical             Clerical
                                                              ------------------------------------------------------------------------------ Total  Cost
                        Required Task                              Time     Cost  ($41/      Time     Cost  ($30/      Time     Cost  ($16/       ($)
                                                                 (hours)        hr.)       (hours)        hr.)       (hours)        hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping                                                            0           $0      100,000   $3,000,000      900,000  $14,400,000  $17,400,000
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Open-end credit Disclosures:                                   ...........  ...........  ...........  ...........  ...........  ...........  ...........
Initial terms                                                       21,167     $867,847      190,499   $5,714,970            0           $0   $6,582,817
Rescission notices                                                     542      $22,222        4,874     $146,220            0           $0     $168,442
Change in terms                                                     27,042   $1,108,722      243,374   $7,301,220            0           $0   $8,409,942
Periodic statements                                                369,083  $15,132,403    3,321,750  $99,652,500            0           $0  $114,784,90
                                                                                                                                                       3
Error resolution                                                    71,167   $2,917,847      640,499  $19,214,970            0           $0  $22,132,817
Credit and charge card accounts                                     12,917     $529,597      116,249   $3,487,470            0           $0   $4,017,067
Home equity lines of credit                                          1,833      $75,153       16,500     $495,000            0           $0     $570,153
Advertising                                                         10,500     $430,500       94,500   $2,835,000            0           $0   $3,265,500

[[Page 10591]]

 
Total open-end credit                                          ...........  ...........  ...........  ...........  ...........  ...........  $159,931,64
                                                                                                                                                       1
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Closed-end credit Disclosures:                                 ...........  ...........  ...........  ...........  ...........  ...........  ...........
Credit disclosures                                                 535,000  $21,935,000    4,815,000  $144,450,00            0           $0  $166,385,00
                                                                                                                0                                      0
Rescission notices                                                  53,750   $2,203,750      483,750  $14,512,500            0           $0  $16,716,250
Variable rate mortgages                                              8,500     $348,500       76,500   $2,295,000            0           $0   $2,643,500
High-rate/high-fee mortgages                                         3,250     $133,250       29,250     $877,500            0           $0   $1,010,750
Reverse mortgages                                                    2,792     $114,472       25,125     $753,750            0           $0     $868,222
Advertising                                                         24,000     $984,000      216,000   $6,480,000            0           $0   $7,464,000
Total closed-end credit                                        ...........  ...........  ...........  ...........  ...........  ...........  $195,087,72
                                                                                                                                                       2
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Disclosures                                              ...........  ...........  ...........  ...........  ...........  ...........  $355,019,36
                                                                                                                                                       3
                                                               ...........  ...........  ...........  ...........  ...........  ...........  ...........
Total Recordkeeping and Disclosures                            ...........  ...........  ...........  ...........  ...........  ...........  $372,419,36
                                                                                                                                                       3
--------------------------------------------------------------------------------------------------------------------------------------------------------


David C. Shonka,
Acting General Counsel.
[FR Doc. E9-5113 Filed 3-10-09: 8:45 am]
BILLING CODE 6750-01-S