Reg Z '12 SS final_mtd

Federal Trade Commission
Supporting Statement for Information Collection
Provisions of Regulation Z
(Truth in Lending Act)
12 C.F.R. 226; 12 C.F.R. 1026
(OMB Control Number: 3084-0088)
1.

Necessity for Collecting the Information

The Truth in Lending Act (“TILA”), 15 U.S.C. 1601 et seq., was enacted to foster
comparison credit shopping and informed credit decision making by requiring accurate
disclosure of the costs and terms of credit to consumers. Creditors and others are subject to
calculation and disclosure requirements that apply to open-end credit (e.g., revolving credit or
credit lines) and closed-end credit (e.g., installment financing) up to $50,000 plus an annual
adjustment (except for private education loans and credit secured by real property, which are
covered regardless of dollar amount). The change in coverage based on the dollar amount was
made by the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”),
Pub. L. 111-203,124 Stat 1376 (2010).
The TILA imposes disclosure requirements on all types of creditors in connection with
consumer credit, including mortgage companies, finance companies, retailers, credit card issuers,
and private education loan companies, to ensure that consumers are fully apprised of the terms of
financing, generally prior to consummation of the transaction or, in some instances, earlier in
time and, in other instances, during the loan term. It also imposes advertising disclosure
requirements on advertisers of consumer credit. It also requires acquirers of mortgage loans to
disclose the change in the ownership of the loan to the borrower, and requires creditors and
others to report appraiser misconduct to state licensing authorities. The TILA requires
institutions of higher education to disclose their agreements regarding the marketing of credit
cards and requires credit card issuers to annual submit reports of credit card agreements. The
TILA also requires credit card issuers to post credit card agreements on their web sites. The
TILA also establishes billing error resolution procedures and limits consumer liability for the
unauthorized use of credit cards. It also requires credit card issuers to establish written policies
and procedures to ensure that an administrator of an estate of a deceased account holder can
ascertain the amount of an account balance in a timely fashion. An amendment to the TILA, the
Home Ownership and Equity Protection Act (“HOEPA”), imposes, among other things, various
disclosure and other requirements on creditors offering certain high-rate, high-fee mortgage
loans to consumers; various requirements now also apply to certain higher priced mortgages.
Subject to the discussion below, the Federal Trade Commission (“FTC” or
“Commission”) enforces the TILA as to all creditors and others and advertisers except those
(such as federally chartered or insured depository institutions) that are subject to the regulatory
authority of another federal agency. The TILA also contains a private right of action with a oneyear statute of limitations for consumers; for certain mortgage actions, TILA now provides a
three-year statute of limitations.
The Board of Governors of the Federal Reserve System (“FRB”) promulgated the
original Regulation Z (12 C.F.R. Part 226) to implement the TILA, as required by the statute.

Under the Dodd-Frank Act, however, almost all rulemaking authority for the TILA transferred
from the FRB to the Consumer Financial Protection Bureau (“CFPB”) on July 21, 2011
(“transfer date”). To implement this transferred authority, the CFPB has published for public
comment interim final rules for new regulations in 12 C.F.R. 1026 (Regulation Z) for those
entities under its rulemaking jurisdiction.1 Although the Dodd-Frank Act transferred most
rulemaking authority under TILA to the CFPB, the FRB retained rulemaking authority for
certain motor vehicle dealers.2
As a result of the Dodd-Frank Act, the FTC and the CFPB now share the authority to
enforce Regulation Z for entities for which the FTC had enforcement authority before the Act,
except for certain motor vehicle dealers. The FTC generally has sole authority to enforce
Regulation Z regarding motor vehicle dealers predominantly engaged in the sale and servicing of
motor vehicles, the leasing and servicing of motor vehicles, or both.3
Recordkeeping
Sections 226.25(a)/1026.25(a) of Regulation Z requires creditors to retain evidence of
compliance with the regulation (other than the advertising requirements) for two years after the
date disclosures are required to be made or other action is required to be taken. Regulation Z
also provides that the FTC (and other administrative agencies responsible for enforcing the
TILA) may require creditors under their jurisdictions to retain records for a longer period if
necessary to carry out their enforcement responsibilities under the TILA. The recordkeeping
requirement ensures that records that might contain evidence of violations of the TILA remain
available to the FTC and other agencies, as well as to private litigants.
Disclosure
The disclosures required by Regulation Z are derived from statutory provisions under the
TILA. See e.g., 12 C.F.R. 226.5a, 12 C.F.R. 1026.60, 15 U.S.C. 1637(c)-(g); 12 C.F.R. 226.5b,
12 C.F.R. 1026.40, 15 U.S.C. 1637a and 1647; 12 C.F.R. 226.6, 12 C.F.R. 1026.6, 15 U.S.C.
1637(a); 12 C.F.R. 226.7, 12 C.F.R. 1026.7, 15 U.S.C. 1637(b) (various open-end disclosures);
12 C.F.R. 226.11(c); 12 C.F.R. 1026.11(c); 15 U.S.C. 1651 (timely settlement of estate of
deceased obligors); 12 C.F.R. 226.18, 12 C.F.R. 1026.18, 15 U.S.C. 1638; 12 C.F.R. 226.33, 12
C.F.R.1026.33, 15 U.S.C. 1648 (various closed-end credit and reverse mortgage disclosures); 12
C.F.R. 226.32 and 226.34, 12 C.F.R. 1026.32 and 1026.34, 15 U.S.C. 1639 (various high-rate,
high-fee closed-end credit disclosures); 12 C.F.R. 226.39; 12 C.F.R. 1026.39; 15 U.S.C. 1641(g)
1

12 C.F.R. 1026 (Reg. Z) (76 Fed. Reg. 79,768, Dec. 22, 2011). Because both the FRB and CFPB have certain
rulemaking authority under Regulation Z – as discussed further below – citations to both aspects of the regulation
are included in this document. Hence, 12 C.F.R. 226 refers to the FRB-issued Regulation Z; 12 C.F.R. 1026 refers
to the CFPB-issued Regulation Z. Generally, these two aspects of Regulation Z are virtually identical, other than
occasional minor technical differences, and citations.

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).

3

See Dodd-Frank Act, § 1029(a), -(c).

2

(disclosure of change in mortgage loan ownership); 12 C.F.R. 226.42(g); 12 C.F.R. 1026.42(g);
15 U.S.C. 1639e (appraisal independence requirements); 12 C.F.R. 226.57(b); 12 C.F.R.
1026.57(b); 15 USC 1650(f) (disclosure of credit card marketing agreements by institutions of
higher education); 12 C.F.R. 226.57(d); 12 C.F.R. 1026.57(d); 15 U.S.C. 1637(r)(2) (annual
reporting by credit card issuers of agreements with institutions of higher education and others);
12 C.F.R. 226.58; 12 C.F.R. 1026.58; 15 U.S.C. 1632(d)(1) (internet posting of credit card
agreements).
The FRB and CFPB have issued model forms and clauses that can be used to comply
with the written disclosure (non-advertising) requirements of the TILA and Regulation Z. See,
e.g., Appendices D-H and K-L 12 to C.F.R. Part 226; Appendices D-H and K-L to 12 C.F.R.
Part 1026. Correct use of these model forms and clauses insulates creditors from liability under
the TILA and Regulation Z. See FRB Official Staff Commentary to Regulation Z (“FRB
Commentary”), Appendixes G and H, Comment 1; 12 C.F.R. 226, Appendixes G and H, Supp.
1; CFPB Official Staff Commentary to Regulation Z (“CFPB Commentary”), Appendixes G and
H, Comment 1; 12 C.F.R. 226, Appendixes G and H, Supp. 1.
2.

Use of the Information

The FTC, other agencies, and private litigants use the records 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 the FTC. Without the
Regulation Z recordkeeping requirement, the FTC’s 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 comparison credit shop 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 and other credit
card provisions, such as limitation of consumer liability for unauthorized use of credit,
consumers would be unable to detect and correct errors on their credit card accounts and
fraudulent charges. The FTC and private litigants need the information in these disclosures and
other requirements to enforce the TILA and Regulation Z. See 15 U.S.C. 1607, 1640.
3.

Consideration of the Use of Improved Information Technology

The FRB and CFPB have issued rules to establish uniform standards for using electronic
communication to deliver disclosures required under Regulation Z, within the context of the
Electronic Signatures in Global and National Commerce Act (“ESIGN”), 15 U.S.C. 7001 et seq.
72 Fed. Reg. 63,462 (Nov. 9, 2007); 76 Fed. Reg. 79,768 (Dec. 22, 2011). These rules enable
businesses to utilize electronic disclosures and compliance, consistent with the requirements of
3

ESIGN. Use of such electronic communications is also consistent with the Government
Paperwork Elimination Act (“GPEA”), codified at 44 U.S.C. 3504, note. ESIGN and GPEA
serve to reduce businesses’ compliance burden related to federal requirements, including
Regulation Z, by enabling businesses to utilize more efficient electronic media for disclosures
and compliance.
Regulation Z also permits creditors to retain records on microfilm or microfiche or any
other method that reproduces records accurately, including computer programs. Creditors need
only retain enough information to reconstruct the required disclosure or other records. Section
226.25(a)-2 of the FRB Commentary, 12 C.F.R. 226.25(a)-2; Section 1026.25(a)-2 of the CFPB
Commentary, 12 C.F.R. 1026.25(a)-2.
4.

Efforts to Identify Duplication/Availability of Similar Information

The recordkeeping requirement of Regulation Z preserves the information utilized by the
creditor in making disclosures (and underlying calculations) of the terms of consumer credit and
other required actions. The creditor is the only source of this information. No other federal law
mandates these disclosures and other required actions. No state law known to staff imposes
these requirements, although some states may have other rules applicable to consumer credit
transactions.
Similarly, the disclosures required by the TILA and Regulation Z are not otherwise
available. Although some credit cost information is contained in contractual documents, the
information is not standardized. As a result, consumers cannot use it efficiently to comparison
shop or to fully appreciate the credit terms. The creditor (and/or advertiser) is the only source of
this information. No other federal law mandates these disclosures. State laws do not duplicate
these requirements, although some states may have other rules applicable to consumer credit
transactions.
5.

Efforts to Minimize Burdens on Small Businesses

The TILA and Regulation Z recordkeeping and disclosure requirements are imposed (in
most instances) on creditors. The recordkeeping requirement is mandated by Regulation Z. The
disclosure requirements are mandated jointly by the TILA and Regulation Z. As previously
noted, the FTC’s role in this area is limited to enforcement, because the TILA vested rulemaking
authority in the FRB and CFPB.
Additionally, as noted above, Regulation Z provides model forms and clauses that may
be used in compliance with its requirements. Correct use of these forms and clauses insulates a
creditor from liability as to proper format.
6.

Consequences of Conducting Collection Less Frequently

The current record retention period of two years supports the one-year and three-year
statutes of limitations for private actions, and the FTC's (and other administrative agencies') need
4

for sufficient time to bring enforcement actions regarding credit transactions. If the retention
period were shortened, consumers who sue under the TILA, and the administrative agencies,
might find that creditor records needed to prove violations of the TILA no longer exist.
As noted, the disclosure requirements are needed to facilitate comparison cost shopping
and to spur informed credit decisionmaking. Without these requirements, consumers would not
have access to this critical information. Their right to sue under the TILA would be undermined,
and the FTC (and other administrative agencies) could not fulfill their mandate to enforce the
TILA.
7.

Circumstances Requiring Collection Inconsistent with Guidelines

Regulation Z’s recordkeeping and disclosure requirements are consistent with the
applicable guidelines contained in 5 C.F.R. 1320.5(d)(2).
8.

Consultation Outside the Agency

The recordkeeping and disclosure requirements of Regulation Z were issued by the FRB
and CFPB. Before the regulation was initially issued and prior to each amendment, the
amendments were published for public comment in the Federal Register.
More recently, the Commission sought public comment in connection with its latest PRA
clearance request for these regulations, in accordance with 5 C.F.R. 1320.8(d). See 77 Fed. Reg.
6114 (Feb. 7, 2012). The Commission received one comment from the National Automobile
Dealer’s Association (“NADA”) pertaining to regulatory burden affecting Regulation Z.4
NADA stated, as a general matter, that the FTC staff estimates greatly underestimate
Regulation Z’s recordkeeping and disclosure requirements for NADA members.5 NADA
provided illustrations of this point for Regulation Z, but did not provide sufficient specific
information from which staff could revisit and revise its estimates. In its comment, NADA
stated that Regulation Z closed-end credit advertising requires much more than one minute of
review for individual dealers to gauge compliance with disclosure requirements. NADA,
however, focused on the FTC estimate of the time per disclosure in an individual transaction,
here, for advertisements. It is “setup/monitoring” burden, however, that addresses the time (and
associated labor cost) applicable to systems review and monitoring for continued compliance.
For credit advertising, estimated setup/monitoring burden is a half hour.
NADA also stated that the estimated burden total appears to assume an average of two
transactions per respondent for advertising, with an average burden per transaction of one
minute. NADA stated that automobile dealers advertise hundreds, if not thousands of vehicles
per year in print, on television, radio, and on sometimes numerous websites and other electronic
4

NADA’s comment is available at http://www.ftc.gov/os/comments/regsbemzpra/index.shtm.

5

NADA states that it represents approximately 16,000 new car and truck dealers, both domestic and import,
with over 32,500 separate franchises. Id.

5

media, and that many are subject to Regulation Z. NADA, however, focused its discussion on
vehicles; but the transaction that is being considered here, is, instead, advertisements. Moreover,
promoting vehicles does not, by itself, subject the advertisement to coverage under Regulation Z.
For example, the advertisement may offer sale prices of vehicles or make general statements
about the availability of credit, which do not trigger advertising compliance responsibilities
under Regulation Z. Other advertisements may be subject to exceptions under Regulation Z in
which disclosures would not be required, such as offers that no downpayment or no trade-in is
required.
Finally, as noted above, the Commission’s jurisdiction covers a highly diverse universe
of entities. Thus, the FTC’s estimates may understate some entities’ actual experience and
perhaps overstate others’. On balance, though, FTC staff believes these estimates are a fair
reflection for the overall universe affected, and the estimates factor into consideration that PRA
“burden” does not include effort extended in the ordinary course of business independent of
regulatory requirements. Consistent with 5 C.F.R. 1320.12(c), the FTC is again seeking public
comment contemporaneously with this submission.
9.

Payments or Gifts to Respondents
Not applicable.

10 & 11.

Assurances of Confidentiality/Matters of a Sensitive Nature

The required recordkeeping and disclosures also contain private financial information
about persons who use consumer credit that is protected by the Right to Financial Privacy Act,
12 U.S.C. 3401 et seq. Such records may also constitute confidential customer lists. Any of
these records provided to the FTC would be covered by the protections of Sections 6(f) and 21 of
the FTC Act, 15 U.S.C. 46(f) and 57b-2, by Section 4.10 of the Commission's Rules of Practice,
16 C.F.R. 4.10, and by the applicable exemptions of the Freedom of Information Act, 5 U.S.C.
552(b), as applicable.
12.
Estimated Hours Burden: 12,663,373 (663,099 recordkeeping hours: 586,900 + 76,199
carve-out for motor vehicles + 12,000,274 disclosure hours: 10,957,621 + 1,042,653 carve-out
for motor vehicles)
Because of their shared enforcement jurisdiction for Regulation Z, the CFPB and the
FTC have divided the FTC’s previously-cleared PRA burden between them,6 except that the FTC
retained all of the part of that burden associated with certain motor vehicle dealers (for brevity,
referred to in the burden summaries below as a “carve-out”).7 The division of PRA burden hours
6

The CFPB also factored into its burden estimates respondents over which it has jurisdiction but the FTC
does not.
7

These are dealers specified by the Dodd-Frank Act under § 1029 (a), but 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 offer is provided directly from those

6

not attributable to certain motor vehicle dealers is reflected in the CFPB’s recent PRA clearance
requests to OMB.8 The FTC’s burden estimates below reflect both the shared enforcement
jurisdiction and the FTC’s separate accounting under the PRA for its exclusive jurisdiction to
enforce Regulation Z for such motor vehicle dealers.
Recordkeeping
FTC staff estimates that Regulation Z’s recordkeeping requirements affect approximately
530,479 firms offering credit and subject to the Commission’s jurisdiction, at an average annual
burden of 1.25 hours per firm,9 for a total of 663,099 hours.
Disclosure
Regulation Z disclosure requirements pertain to open-end and closed-end credit. It
applies 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. Below is staff’s best estimate of
burden applicable to this very spectrum of covered entities.

Regulation Z: Disclosures – Burden Hours

Disclosures1

--------------- Setup/Monitoring --------------Average
Total Setup/
Burden per
Monitoring
Respondents Respondent2
Burden
(hours)
(hours)

Open-end credit:
Initial terms
45,000
1,875
Rescission notices4
Subsequent disclosures
10,000
Periodic statements
45,000
Error resolution
45,000
Credit and charge card accounts
25,000
45,000
Settlement of estate debts5
6
25,000
Special credit card requirements
1,875
Home equity lines of credit7
College student credit card
8
2,500
marketing – ed. institutions
College student credit card
300
marketing – card issuer reports9

---------- Transaction-related ----------Average
Total
Number of Burden per Transaction
Transactions Transaction3
Burden
(minutes)
(hours)

Total
Burden
(hours)

.75
.5
.75
.75
.75
.75
.75
.75
.5

33,750
938
7,500
33,750
33,750
18,750
33,750
18,750
938

20,000,000
100,000
62,500,000
1,750,000,000
4,000,000
12,500,000
1,000,000
12,500,000
875,000

.375
.25
.188
.0938
6
.375
.375
.375
.25

125,000
417
195,833
2,735,833
400,000
78,125
6,250
78,125
3,646

158,750
1,355
203,333
2,769,583
433,750
96,875
40,000
96,875
4,584

.5

1,250

250,000

.25

1,042

2,292

.75

225

18,000

.75

225

450

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 “carve-out” for this PRA burden
analysis reflects a general estimated volume of motor vehicle dealers. This attribution does not change actual
enforcement authority.
8

OMB Control Number 3170-0015 (Regulation Z).

9

This is an increase from past estimates of one hour per respondent in recognition of the breadth of
amendments to Regulation Z and their associated impact on recordkeeping through increased coverage and
more complex transactions.

7

Posting and reporting of
credit card agreements10
Advertising
Sale, transfer, or assignment
of mortgages11
Appraiser misconduct
reporting12

Closed-end credit:
Credit disclosures13
Rescission notices14
Redisclosures15
Variable rate mortgages16
High rate/high-fee mortgages
and higher priced mortgages17
Reverse mortgages18
Advertising
Private education loans19
Sale, transfer, or assignment
of mortgages20
Appraiser misconduct reporting21

25,000
100,000

.75
.75

18,750
75,000

12,500,000
300,000

.375
.75

78,125
3,750

96,875
78,750

1,875

.5

938

1,750,000

.25

7,292

8,230

625,000

.75

468,750

12,500,000

.375

78,125

546,875

380,480
18,750
200,000
17,500

.75
.5
.5
.5

285,360
9,375
100,000
8,750

163,225,920
7,500,000
1,000,000
500,000

2.25
1
2.25
1.5

6,120,972
125,000
37,500
12,500

6,406,332
134,375
137,500
21,250

10,000
12,500
240,240
100

.5
.5
.5
.5

5,000
6,250
120,120
50

125,000
43,750
480,480
50,000

1.5
1
1
1.5

3,125
729
8,008
1,250

8,125
6,979
128,128
1,300

100,000
625,000

.5
.75

50,000
468,750

5,000,000
12,500,000

.25
.375

20,833
78,125

70,833
546,875

Total open-end credit
Total closed-end credit

4,538,577
7,461,697

Total credit

12,000,274

1
Regulation Z requires disclosures for closed-end and open-end credit. TILA and Regulation Z now cover credit up to $50,000 plus an annual
adjustment (except that real estate credit and private education loans are covered regardless of amount), generally causing an increase in
transactions. In some instances noted below, market changes have reduced estimated PRA burden. In other instances noted below, changes to
Regulation Z have increased estimated PRA burden. The overall effect of these competing factors, combined with the FTC now sharing with the
CFPB estimated PRA burden (for all but certain motor vehicle dealers) yields a net decrease from the FTC’s prior reported estimate for open-end
credit and a net increase from the FTC’s prior burden estimate for closed-end credit.
2

Burden per respondent in many categories has increased compared to prior FTC estimates, due to changes in rules.
Burden per transaction in many categories has increased compared to prior FTC estimates, due to changes in rules.
Mortgages have decreased.
5
Regulation Z now requires disclosures for timely settlement of estate debts.
6
Regulation Z now has special credit card requirements.
7
Home equity lines of credit have decreased.
8
Regulation Z now requires higher education institutions to disclose credit card marketing agreements.
9
Regulation Z now requires card issuers to submit reports on college student credit card marketing.
10
Regulation Z now requires card issuers to post and report general credit card agreements.
11
Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
12
Regulation Z now requires reporting of appraiser misconduct.
13
Estimated closed-end credit disclosure transactions have increased from the FTC’s previously cleared estimate.
14
Mortgages have decreased.
15
Regulation Z now has substantial redisclosure requirements. Previously, redisclosures generally were provided in the ordinary course of
business. Rule changes since set numerous procedures and circumstances for redisclosures.
16
Variable rate mortgages have decreased.
17
Mortgages have decreased.
18
Reverse mortgages have decreased.
19
Regulation Z now requires disclosures for private education loans.
20
Regulation Z now requires certain acquirers of legal title to disclose the sale, transfer, or assignment of mortgages.
21
Regulation Z now requires reporting of appraiser misconduct.
3
4

Associated labor costs: $394,396,492 ($11,537,924 recordkeeping costs: $10,212,060 +
$1,325,864 carve-out for motor vehicles + $382,858,568 disclosure costs: $349,597,924 +
$33,260,644 carve-out for motor vehicles)

8

Staff calculated labor costs by applying appropriate hourly cost figures to the burden
hours described above. The hourly rates used below ($49 for managerial or professional time,
$30 for skilled technical time, and $16 for clerical time) are averages.
Recordkeeping
For the 663,099 recordkeeping hours, 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 $11,537,924.
Disclosure
For each notice or information item listed, staff estimates that 10 percent of the burden
hours require managerial or professional time and 90 percent require skilled technical time. As
shown below, the total disclosure cost is $382,858,568.

Regulation Z: Recordkeeping and Disclosures – Cost
Required Task

Recordkeeping
Open-end credit Disclosures:
Initial terms
Rescission notices
Subsequent disclosures
Periodic statements
Error resolution
Credit and charge card accounts
Settlement of estate debts
Special credit card requirements
Home equity lines of credit
College student credit card
marketing – ed institutions
College student credit card
marketing – card issuer reports
Posting and reporting of
credit card agreements
Advertising
Sale, transfer, or assignment
of mortgages
Appraiser misconduct reporting
Total open-end credit
Closed-end credit Disclosures:
Credit disclosures
Rescission notices
Redisclosures
Variable rate mortgages
High-rate/high-fee mortgages
and higher priced mortgages
Reverse mortgages
Advertising
Private education loans
Sale, transfer, or assignment
of mortgages
Appraiser misconduct reporting

------Managerial-----Time
Cost
(hours)
($49/hr.)
0

-----Skilled Technical----Time
Cost
(hours)
($30/hr.)

--------Clerical-------Time
Cost
(hours)
($16/hr.)

Total
Cost
($)

$0

66,310

$1,989,300

596,789

$9,548,624

$11,537,924

15,875
$777,875
135
$6,615
20,333
$996,317
276,958 $13,570,942
43,375 $2,125,375
9,688
$474,712
4,000
$196,000
9,688
$474,712
458
$22,442

142,875
1,220
183,000
2,492,625
390,375
87,187
36,000
87,187
4,126

$4,286,250
$36,600
$5,490,000
$74,778,750
$11,711,250
$2,615,610
$1,080,000
$2,615,610
$123,780

0
0
0
0
0
0
0
0
0

$0
$0
$0
$0
$0
$0
$0
$0
$0

$5,064,125
$43,215
$6,486,317
$88,349,692
$13,836,625
$3,090,322
$1,276,000
$3,090,322
$146,222

229

$11,221

2,063

$61,890

0

$0

$73,111

45

$2,205

405

$12,150

0

$0

$14,355

9,688
7,875

$474,712
$385,875

87,187
70,875

$2,615,610
$2,126,250

0
0

$0
$0

$3,090,322
$2,512,125

823
54,687

$40,327
$2,679,663

7,407
492,188

$222,210
$14,765,640

0
0

$0
$0

$262,537
$17,445,303
$144,780,593

5,765,699 $172,970,970
120,938
$3,628,140
123,750
$3,712,500
19,125
$573,750

0
0
0
0

$0
$0
$0
$0

$204,361,987
$4,286,553
$4,386,250
$677,875

640,633 $31,391,017
13,437
$658,413
13,750
$673,750
2,125
$104,125
969
698
12,813
130

$47,481
$34,202
$627,837
$6,370

8,719
6,281
115,315
1,170

$261,570
$188,430
$3,459,450
$35,100

0
0
0
0

$0
$0
$0
$0

$309,051
$222,632
$4,087,287
$41,470

7,083
54,687

$347,067
$2,679,663

63,750
492,188

$1,912,500
$14,765,640

0
0

$0
$0

$2,259,567
$17,445,303

9

Total closed-end credit

$238,077,975

Total Disclosures

$382,858,568

Total Recordkeeping and Disclosures

$394,396,492

13.

Estimated Capital and Other Non-Labor Costs

The applicable requirements impose minimal start-up costs, as creditors and/or
advertisers generally have or obtain necessary equipment for other business purposes. For the
same reason, staff believes that the cost of printing and copying to comply with Regulation Z is
minimal. Staff anticipates that the above requirements necessitate ongoing, regular training so
that covered entities stay current and have a clear understanding of federal mandates. This
training, however, would be a small portion of and subsumed within the ordinary training that
employees receive apart from that associated with collecting information to comply with
Regulation Z.
14.

Estimated Cost to Federal Government

The FRB and CFPB issued the recordkeeping requirement of Regulation Z, so there is no
cost to the FTC for that purpose. Enforcement of the recordkeeping requirements of Regulation
Z is incidental to overall enforcement of the TILA. Staff estimates that enforcing the
recordkeeping requirement will cost the FTC Bureau of Consumer Protection approximately
$157,816, which is a representative year’s cost of enforcing Regulation Z’s requirements during
the three-year clearance period sought. This estimate is based on the assumption that one
attorney work year will be expended. Clerical and other support services are included in this
estimate.
The FRB and CFPB issued the disclosure requirements of Regulation Z, so there is no
cost to the FTC for that purpose. Regarding enforcement of the disclosure requirements, staff
estimates that the cost to the FTC Bureau of Consumer Protection of administering all TILA
requirements will approximate $1.4 million. This estimate is based on the assumption that eight
full attorney work years and one other professional work year will be expended to enforce
various aspects of these rules. Clerical and other support services are also included in this
estimate.
15.

Program Changes or Adjustments

FTC staff have adjusted upward the prior overall burden estimate by 247,955 hours (from
12,415,418 to 12,663,373). This reflects the burden splitting noted above regarding shared
enforcement authority with the CFPB, but that is offset by countervailing increases due to the
breadth of amendments to Regulation Z and their impact on recordkeeping and disclosure
through expanded coverage and more complex transactions.

10

16.

Publishing Results of the Collection of Information
Not applicable.

17.

Display of Expiration Date for OMB Approval
Not applicable.

18.

Exceptions to the Certifications for PRA Submissions
Not applicable.

11