Federal and state enforcement agencies
and private litigants use records retained under the requirement of
Regulation Z to ascertain whether accurate and complete disclosures
of the cost of credit have been provided to consumers prior to
consummation of the credit obligation and, in some instances,
during the loan term. The information is also used to determine
whether other actions required under the TILA, including complying
with billing error resolution procedures and limitation of consumer
liability for unauthorized use of credit, have been met. The
information retained provides the primary evidence of law
violations in TILA enforcement actions brought by federal agencies.
Without the Regulation Z recordkeeping requirement, the agencies'
ability to enforce the TILA would be significantly impaired. As
noted above, consumers rely on the disclosures required by the TILA
and Regulation Z to shop among options and to facilitate informed
credit decision making. Without this information, consumers would
be severely hindered in their ability to assess the true costs and
terms of financing offered. Also, without the special billing error
information, consumers would be unable to detect and correct errors
or fraudulent charges on their open-end credit accounts.
Additionally, enforcement agencies and private litigants need the
information in these disclosures to enforce the TILA and Regulation
Z. See 15 U.S.C. 1607, 1640.
The Bureau of Consumer
Financial Protection (CFPB) respectfully requests emergency
processing and approval of the collection of information discussed
below because the use of normal clearance procedures is reasonably
likely to prevent and disrupt an existing collection of
information. Under the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act), rulemaking authority for the Truth
in Lending Act (TILA), 15 U.S.C. 1601 et seq., transferred from the
Board of Governors of the Federal Reserve System (Board) to the
CFPB on July 21, 2011. In addition to the transfer of rulemaking
authority under the Dodd-Frank Act, the CFPB received certain
enforcement authorities with respect to the TILA. The CFPB is in
the process of publishing for public comment an interim final rule
establishing a new regulation in 12 CFR 1026 (Regulation Z). This
interim final rule substantially replicates the Boards Regulation
Z and will not impose any new substantive obligations on regulated
entities or any new information collection requirements. As the
CFPB now has enforcement authority over certain populations that
have been under the jurisdiction of other agencies, the CFPB is
requesting approval of a new OMB control number for its collection
activities under Regulation Z. To prevent disruptions of approved
information collections, the CFPB is requesting emergency
processing and approval of the following information collection
request. Upon receipt of emergency approval from the Office of
Management and Budget, the CFPB will begin a standard approval
process for this collection and will seek public input at that
time.
None
PL: Pub.L. 111 - 203 X Name of Law: Wall
Street Reform and Consumer Protection Act
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Supporting Statement for Regulation Z 20111019 v1.doc
Recordkeeping