3170-0004 Supporting_Statement_for_Regulation_DD(2013 renewal)_FINAL

CONSUMER FINANCIAL PROTECTION BUREAU
INFORMATION COLLECTION REQUEST – SUPPORTING STATEMENT
TRUTH IN SAVINGS (REGULATION DD) 12 CFR 1030
(OMB CONTROL NUMBER: 3170-0004)
TERMS of CLEARANCE
In its July 16, 2012 Notice of Action, the Office of Management and Budget
(OMB) provided the following Terms of Clearance:
After discussing with [the Consumer Financial Protection Bureau] CFPB the
issues of incorporating burden and cost estimates, possible exemptions and both the
scope and somewhat opaque specificity of some of the aspects of Regulation DD and this
[Information Collection Request] ICR - mainly due to having so much of the information
corralled from other agencies – [Office of Information and Regulatory Affairs] OIRA will
approve the current ICR for one year. This should be sufficient time for CFPB to perform
its cost and burden estimates and to analyze and implement Regulation DD as it sees fit.
This amount of time will likely produce results that CFPB can use in its next ICR
submission one year from now. CFPB related the processes they are currently
undertaking to resolve and update the various pieces of regulatory authority (from
multiple agencies) now under their control. OIRA's hope is that within the next year,
CFPB can perform their own analysis of this new Regulation and accompanying ICR,
followed by submission of an updated, vetted ICR for approval over a longer period of
time.
The CFPB respectfully requests that the OMB approve this information collection
for a full three-year period. The burden estimates for Regulation DD have been duly
vetted through the public notice and comment process; the Bureau received no comments
in response to the Federal Register Notice. No changes to the information collection
requirements as currently contained in Regulation DD are currently planned. As noted
above, the Bureau is currently undertaking an examination of the costs of compliance
with certain regulations for which the Bureau has authority, including Regulation DD.
The Study is not yet complete and so the Bureau has not received public feedback on the
methodology or findings. The Bureau believes that the findings from the Cost of
Compliance Study will ultimately inform our measurement of the burden of Regulation
DD for purposes of the Paperwork Reduction Act. However, the fact that the results of
the Study are still preliminary and the Study was not designed to directly measure PRA
burden mean that further analysis is required before the findings of the Study can be used
for this purpose. The CFPB expects to conduct this analysis and use the Study findings,
as applicable, to update the burden estimates after the Study is completed and feedback
on it has been obtained.

ABSTRACT

1

Consumers rely on the disclosures required by TISA and Regulation DD to
facilitate informed decision making regarding deposit accounts offered at depository
institutions. Without this information, consumers would be severely hindered in their
ability to assess the true costs and terms of the deposit accounts offered. Federal agencies
and private litigants use the records to ascertain whether accurate and complete
disclosures of depository accounts have been provided to consumers. This information
also provides the primary evidence of law violations in TISA enforcement actions
brought by the CFPB. Without the Regulation DD recordkeeping requirement, the
CFPB's ability to enforce TISA would be significantly impaired.
A. JUSTIFICATION
1. Circumstances Necessitating the Data Collection
The Truth in Savings Act (TISA), 12 U.S.C. 4301 et seq., was enacted to enhance
economic stability, improve competition between depository institutions, and strengthen
consumers’ ability to make informed decisions regarding deposit accounts by requiring
uniformity in the disclosure of interest rates and fees. TISA assists consumers in
comparing deposit accounts offered by depository institutions, principally through the
disclosure of fees, the annual percentage yield, the interest rate, and other account terms.
Historically, TISA has been implemented in Regulation DD of the Board of
Governors of the Federal Reserve System (Board), 12 CFR Part 230 (and, with respect to
credit unions, by National Credit Union Administration (NCUA) regulations at 12 CFR
Part 707). The Dodd-Frank Wall Street Reform and Consumer Protection Act (DoddFrank Act) 1 amended a number of consumer financial protection laws, including TISA.
In addition to various substantive amendments, the Dodd-Frank Act transferred the
Board’s rulemaking authority for TISA to the Bureau of Consumer Financial Protection
(CFPB), effective July 21, 2011. 2 The CFPB is promulgating Regulation DD to
implement TISA, as required by statute. Regulation DD is located at 12 CFR 1030 and is
available here at www.ecfr.gov.
TISA and Regulation DD require depository institutions to disclose yields, fees,
and other terms concerning deposit accounts to consumers at account opening, upon
request, and when changes in terms occur. Depository institutions that provide periodic
statements are required to include information about fees imposed, interest earned, and
the annual percentage yield (APY) earned during those statement periods. TISA and
Regulation DD mandate the methods by which institutions determine the account balance
on which interest is calculated. They also contain rules about advertising deposit
accounts and overdraft services.

1

Pub. L. 111–203,124 Stat. 1376 (2010).
Dodd-Frank Section 1029 generally excludes from this transfer of authority, subject to certain exceptions,
any rulemaking authority over a motor vehicle dealer that is predominantly engaged in the sale and
servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.
2

2

Regulation DD applies to all depository institutions except credit unions. 3 The
information collected pursuant to Regulation DD is triggered by specific events and
disclosures and must be provided to consumers within the time periods established by
TISA and the regulation. There are no reporting forms associated with Regulation DD.
To ease the compliance cost (particularly for small entities), model clauses and sample
forms are appended to the regulation.
Recordkeeping
Section 1030.9(c) of Regulation DD requires depository institutions subject to
TISA to retain evidence of compliance with the regulation for two years after the date
disclosures are required to be made or action is required. Regulation DD also provides
that administrative agencies responsible for enforcing the regulation may require
depository institutions under their jurisdiction to retain records for a longer period if
necessary to carry out their enforcement responsibilities under TISA. The recordkeeping
requirement insures that records that might contain evidence of violations of TISA
remain available to Federal agencies, as well as to private litigants.
Disclosure
TISA and Regulation DD cover accounts held by individuals primarily for
personal, family, or household purposes. The disclosure requirements associated with
Regulation DD are described below.
Account Disclosures (Section 1030.4)
Depository institutions are required to provide account disclosures containing rate
and fee information to a consumer upon request. Account disclosures must also be
provided prior to opening an account or before services are provided, whichever is
earlier. The purpose of the disclosure requirement is to provide account holders and
prospective account holders with the type and amount of any fees that may be imposed,
(including ATM withdrawals or other electronic fund transfers); the interest rate and the
APY that will be paid on an account; and other key terms. Institutions are required to
specify the categories of transactions for which an overdraft fee may be imposed in the
account-opening disclosures provided under TISA.
Subsequent Notices (Section 1030.5)
Change-in-terms notice (Section 1030.5(a)). Depository institutions are required
to provide 30 days’ notice of any change that may reduce the APY or adversely affect
consumers, such as a change in fees. Certain types of events such as changes in the
interest rate and APY for variable rate accounts are exempt from this requirement.

3

Credit unions are covered by a substantially similar rule issued by the National Credit Union
Administration.

3

Notice prior to maturity (Sections 1030.5(b),(c)). Depository institutions are
required to provide notices prior to maturity for certain time accounts. The timing and
content requirement of the notice varies depending on the term of a time deposit and
whether it renews automatically:
• For automatically renewable time accounts with a term less than or equal to one
month, no advance notice is required.
• Advance notices for automatically renewable time accounts with a maturity
longer than one month but less than or equal to one year may be sent either 30
days before maturity or, as an alternative, 20 calendar days before the end of a
grace period, so long as the grace period is at least 5 days. The alternative timing
rule was adopted to allow flexibility for institutions to maintain any existing
practice to send notices 10 to 15 days prior to maturity. The notice may contain
the disclosures required when the account is opened or, as an alternative,
information on the interest rate and APY for the new account, the maturity date
for the existing and new accounts, and any changes in terms.
• For automatically renewable time accounts with terms longer than one year,
institutions must provide disclosures required at account opening. The timing
rules for these accounts longer than one year are the same as for accounts with
maturities longer than one month but less than or equal to one year.
For nonrenewable time accounts with a maturity of less than or equal to one year,
no notice is required. If the maturity is longer than one year, the notice must provide
information on the maturity date, and whether or not interest will be paid after maturity.
Periodic Statement Disclosure (Section 1030.6)
Neither TISA nor the regulation mandates that depository institutions provide
periodic statements. If an institution chooses to provide periodic statements, however,
the statements must contain specific information: the total number of days in, or the
beginning and ending dates of, the statement period; the dollar amount of interest earned
and APY earned; fees imposed on the account, itemized by type and dollar amount; and if
applicable, the total overdraft and returned item fees for the statement period and for the
calendar year to date.
Advertising (Section 1030.8)
The advertising rules apply to both depository institutions and deposit brokers.
The purpose of the advertising rules is to provide potential shoppers with uniform and
accurate information that they can use in deciding among various deposit accounts.
Additional disclosure requirements for overdraft services (Section 1030.11)
Institutions providing periodic statements must separately disclose on such
statements the total amount of fees or charges imposed on the deposit account for paying
overdrafts and the total amount of fees charged for returning items unpaid. These
disclosures must be provided for the statement period and for the calendar year to date.
4

Furthermore, advertisements generally promoting the payment of overdrafts must
disclose the fees for the payment of each overdraft, the categories of transactions for
which a fee for paying an overdraft may be imposed, the time period by which a
consumer must repay or cover any overdraft, and the circumstances under which the
institution will not pay an overdraft. Moreover, any account balance disclosed to a
consumer through an automated system (including, but not limited to, an ATM, Internet
Web site, or telephone response system) must exclude additional amounts that the
institution may provide or that may be transferred from another account of the consumer
to cover an item where there are insufficient or unavailable funds in the consumer’s
account. An institution may, however, disclose an additional account balance that
includes such additional amounts provided the institution states that any such balance
includes such additional amounts, and if applicable, that additional amounts are not
available for all transactions.
2. Use of the Information
Federal agencies and private litigants use the records to ascertain whether
accurate and complete disclosures of depository accounts have been provided to
consumers. This information also provides the primary evidence of law violations in
TISA enforcement actions brought by the CFPB. Without the Regulation DD
recordkeeping requirement, the CFPB’s ability to enforce TISA would be significantly
impaired.
Consumers rely on the disclosures required by TISA and Regulation DD to
facilitate informed decision making regarding deposit accounts offered at depository
institutions. Without this information, consumers would be severely hindered in their
ability to assess the true costs and terms of the deposit accounts offered. These
disclosures and provisions are necessary for the CFPB and private litigants to enforce
TISA and Regulation DD.
3. Use of Information Technology
Regulation DD contains rules to establish uniform standards for using electronic
communication to deliver disclosures required under Regulation DD, within the context
of the Electronic Signatures in Global and National Commerce Act (ESIGN), 15 U.S.C.
7001 et seq. 12 CFR 1030.3(a). These rules enable businesses to utilize electronic
disclosures and compliance, consistent with the requirements of ESIGN. Use of such
electronic communications is also consistent with the Government Paperwork
Elimination Act (GPEA), Title XVII of Pub. L. 105-277, codified at 44 U.S.C. 3504,
note. ESIGN and GPEA serve to reduce businesses’ compliance burden related to federal
requirements, including Regulation DD, by enabling businesses to use more efficient
electronic media for disclosures and compliance.
Regulation DD also permits depository institutions to retain records on microfilm
or microfiche or any other method that reproduces records accurately, including computer
programs. Depository institutions need only retain enough information to reconstruct the
required disclosure or other records. Comment 9(c)-2.
5

4. Efforts to Identify Duplication
The recordkeeping requirement of Regulation DD preserves the information an
affected entity uses in making disclosures and other required actions regarding deposit
accounts. The entity is the only source of this information. No other federal law
mandates its retention. State laws do not duplicate these requirements, although some
states may have other rules applicable to deposit accounts.
Similarly, covered entities are the only source of the information contained in the
disclosures required by the TISA and Regulation DD. No other federal law mandates
these disclosures. State laws do not duplicate these requirements, although some states
may have other rules applicable to deposit accounts.

5. Efforts to Minimize Burdens on Small Entities
The TISA and Regulation DD recordkeeping and disclosure requirements are
imposed on all depository institutions, except credit unions. As noted above, small
businesses that are credit unions are not covered by Regulation DD. The recordkeeping
requirement is mandated by Regulation DD. The disclosure requirements are mandated
jointly by the TISA and Regulation DD.
Most depository institutions today use some degree of computerization in their
business, and Regulation DD permits businesses to rely on computer support, among
other alternatives, to meet their recordkeeping and disclosure requirements. This
flexibility yields reduced recordkeeping and disclosure costs. (See #3 above.) Moreover,
as noted previously, Regulation DD provides model forms and clauses that may be used
in compliance with its requirements. Correct use of these forms and clauses insulates a
depository institution from liability as to proper format.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
The current record retention period of two years supports the one-year statute of
limitations for private actions, and enforcement agencies’ need for sufficient time to
bring enforcement actions regarding deposit accounts. If the retention period were
shortened, consumers who sue under TISA, and the administrative agencies, might find
that depository institution records needed to prove violations of TISA no longer exist.
As noted, the disclosure requirements are needed to facilitate comparison cost
shopping and to spur informed decision making regarding deposit accounts. Without
these requirements, consumers would not have access to this critical information. Their
right to sue under TISA would be undermined, and enforcement agencies could not fulfill
their mandate to enforce TISA.
7. Circumstances Requiring Special Information Collection

6

The collections of information in Regulation DD are consistent with the
applicable guidelines contained in 5 CFR 1320.5(d)(2).
8. Consultation Outside the Agency
In accordance with 5 CFR 1320.8(d)(1), on May 14, 2013, the CFPB has
published a notice Federal Register allowing the public 60 days to comment on the
proposed extension of this currently approved collection of information (78 FR 28204).
No comments were received in response to this Notice.
Further and in accordance with 5 CFR 1320.5(a)(1)(iv), the Bureau will publish a
notice in the Federal Register allowing the public 30 days to comment on the submission
of this information collection request to the Office of Management and Budget.
9. Payments or Gifts to Respondents
Not applicable.
10. Assurances of Confidentiality
The required recordkeeping and disclosures 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 CFPB would be covered by the protections of the
CFPB’s rules on Disclosure of Records and Information, 12 CFR Part 1070, and by the
exemptions of the Freedom of Information Act, 5 U.S.C. 552(b), as applicable.
11. Justification for Sensitive Questions
Not applicable.
12. Estimated Burden of Information Collection
Hours: 23,000
The CFPB’s estimate of the burden for ongoing recordkeeping and disclosure
requirements under Regulation DD is based on the assumption that the total ongoing
burden for this regulation, across all agencies, remains the same as it was before the
regulation was restated by the CFPB. Prior to the passage of the Dodd-Frank Act,
the ongoing recordkeeping and disclosure burdens for Regulation DD allocated to the
Board, Office of the Comptroller of the Currency, Office of Thrift Supervision, and
Federal Deposit Insurance Corporation were approximately 860,000 hours. 4 In light
4

The CFPB has relied on the estimates previously developed by the Board, OCC, OTS, and FDIC
concerning the number of entities subject to Regulation DD and the hours of paperwork burden under the
statute (for a detailed breakdown of the burden estimates of those regulators, please reference the other
agencies’ supporting statements for Regulation DD, which can be found at www.reginfo.gov). The

7

of the changes made by the Dodd-Frank Act, roughly 23,000 hours of that burden is
being reallocated to the CFPB. Specifically, the CPPB is being allocated burden for
142 depository institutions (comprising banks and thrifts with total assets of more
than $10 billion and their depository affiliates) which is the approximate number of
such depository entities that the CFPB now has primary enforcement authority for
with respect to Regulation DD. 5
Summary of CFPB’s PRA Burden for Regulation DD
Associated Labor Costs: $903,671
The CFPB calculated labor costs by applying appropriate hourly cost figures to
the burden hours described above. The hourly cost figures used are those associated with
the burden hours assumed from the other regulatory agencies, which differ by agency.
The CFPB estimates that the ongoing recordkeeping and disclosure costs
allocated to the CFPB under Regulation DD are $903,671. This estimate was calculated
by summing the CFPB’s share of costs from the supporting statements of the other
agencies, following each agency’s own cost analysis. For a detailed breakdown of the
cost analysis, please reference the other agencies’ supporting statements for Regulation
DD.
13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers
As suggested by OMB, our Federal Register notice dated January 19, 2012,
requested public comments on estimates of cost burden that are not captured in the
estimates of burden hours, i.e., estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide information. However, we
did not receive any responses from individuals on this subject. As a result, estimates of
these cost burdens are not available at this time. Therefore, we have determined that there
are no additional costs for respondents or recordkeepers other than the labor costs
estimated above in Item 12.
14. Estimated Cost to the Federal Government
Since the CFPB does not regularly collect any information, the cost to the CFPB
is negligible.
15. Program Changes or Adjustments
CFPB’s enforcement authority is not necessarily limited to the entities covered by these agencies’
estimates. In some instances, information regarding actual burden hours or dollar costs, or breakdowns of
these hours or costs was not available from the other agencies. In these cases, CFPB has estimated the
relevant figures based on data provided by the OCC and in some cases by the Board.
5
The previous total was 177, which included 27 from the Board, 70 from the OCC, 24 from the OTS, and
56 from the FDIC. As some of the reduction from 177 to 142 CFPB supervised entities is due to the
absorption of CFPB supervised affiliates by CFPB supervised banks, the CFPB chooses not to reduce the
CFPB burden hours proportionately.

8

There were no changes made to the document that resulted in any change to the
burden previously reported to OMB.
We are making this submission to renew the OMB approval.
16. Plans for Tabulation, Statistical Analysis, and Publication

Not applicable.
17. Display of Expiration Date
Not applicable.
18. Exceptions to the Certification Requirement
The expiration date of this OMB control number is displayed on OMB’s publicfacing docket at www.reginfo.gov.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable.

9