SUPPORTING STATEMENT
RECORDKEEPING AND DISCLOSURE REQUIREMENTS
IN CONNECTION WITH REGULATION M
(OMB No. 3064‑0083)
INTRODUCTION
The Federal Deposit Insurance Corporation (“FDIC”) is requesting OMB approval to extend the information collection previously approved as 3064-0083. The current clearance for the collection expires on March 31, 2008.
A. Justification
1. Circumstances and Need
The requirements for this collection are contained in Regulation M – Consumer Leasing, 12 C.F.R. Part 213, issued by the Board of Governors of the Federal Reserve System (“FRB”). Regulation M is issued under the authority 15 U.S.C. § 1604 and implements the consumer leasing provisions of the Truth in Lending Act (“TILA”) 15 U.S.C. § 1667-1667f. Regulation M requires lessors of personal property to provide consumers with disclosures about the costs and terms of the leases for personal property. The FRB’s information collection is approved under PRA control number 7100-0202. The FDIC’s enforcement responsibilities for state nonmember banks is granted by 15 U.S.C. §1607.
2. Use of Information Collected
Regulation M is intended to provide consumers with disclosures about the costs and terms of leases for personal property. The disclosures enable consumers to compare the terms for a particular lease with those for other leases and, when appropriate, to compare lease terms with those for credit transactions. The lease disclosure requirements apply to leases of personal property for a period exceeding four months where the contractual obligation is $25,000 or less. Lessors are required to provide certain key information to consumers in a standard, uniform manner before they enter into the lease transaction.
The purpose of the advertising rules is to provide potential shoppers with uniform and accurate information. The advertising requirements apply to all persons that promote the availability of consumer leases through commercial messages in any form, including messages in print, electronic media, direct mailings, or on any sign or display. Advertising certain terms triggers the requirement for additional disclosures. For television or radio advertisements, special rules allow alternative disclosures using toll-free telephone numbers or written advertisements in a publication of general circulation.
Lessors are required to retain evidence of compliance with Regulation M for twenty-four months, but the regulation does not specify types of records that must be retained.
3. Use of Technology to Reduce Burden
The Regulation M information collection consists of third party disclosures and advertising requirements. There are no reporting forms. Institutions may provide electronic disclosures consistent with the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §§ 7001 et seq., and § 213.6 of Regulation M.
4. Efforts to Identify Duplication
A lease contract may contain many of the same items required by the Regulation M disclosures, but not all of them and not in the same terminology or form.
5. Minimizing the Burden on Small Businesses
Consistent with the statute, Regulation M and its requirements apply to lessors based on the amount of their leasing activity. The FRB provides model forms to ease the compliance burden for small institutions.
6. Consequence of Less Frequent Collections
The information collection is triggered by specific events consistent with Regulation M. The frequency of response varies according to the lessor’s level of consumer leasing and advertising activities.
7. Special Circumstances
None.
8. Consultation with Persons Outside the FDIC
A “first” Federal Register notice (attached) seeking comment was published on October 19, 2007 (72 Fed. Reg. 202,59289). No comments were received.
9. Payment or Gift to Respondents
None.
10. Confidentiality
As no information is collected, no issue of confidentiality arises.
11. Questions of a Sensitive Nature
No questions of a sensitive nature are included in this collection.
12. Estimates of Annualized Hour Burden and Associated Cost
Estimated Number of Respondents: 2,000
Estimated Time Per Response: .75 hours
Estimated Average Frequency of Transactions Per Year: 100
Total Annual Burden: 150,000
Estimated annual cost to FDIC supervised institutions (at $20 hourly cost) is $3,000,000
13. Capital/Start-up and Operation/Maintenance Cost
None.
14. Cost to Government
Since the FDIC does not collect any information, the cost to the FDIC is negligible.
15. Reason for Change in Burden
The change in burden is the result of an adjustment to reflect an increase in the number of respondent banks from 1,755 to 2,000.
16. Publication
There is no publication of the information reported.
17. Display of Expiration Dates
Not applicable to these disclosures.
18. Exceptions to Certification
None.
B. STATISTICAL METHODS
Not applicable.
| File Type | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | FDIC |
| Last Modified By | leneta gregorie |
| File Modified | 2008-03-10 |
| File Created | 2008-03-10 |