SUPPORTING STATEMENT
Unfair and Deceptive Acts or Practices,
18(f)(1) of the Federal Trade Commission Act (FTC
Act), 12 U.S.C. 57a(f)(1)
A.
JUSTIFICATION
1.
Circumstances that make the
collection necessary
OTS requests OMB approval for
the collections of information contained in the attached joint proposed rulemaking,
which implements section 18(f)(1) of the Federal Trade Commission Act (FTC
Act), 12 U.S.C. 57a(f)(1). Under section 18(f)(1) of the FTC Act, OTS is
exclusively responsible for prescribing rules applicable to savings
associations to prevent unfair or deceptive acts or practices (UDAPs) in or
affecting commerce, including acts or practices that are unfair or deceptive to
consumers. Under this proposed rulemaking, OTS would incorporate its
existing Prohibited Consumer Credit Practices (12 CFR part 535), which governs
UDAPs involving consumer credit, into a new, more comprehensive UDAP Rule,
which would also address UDAPs involving credit cards and overdraft protection
services. Some of the regulatory provisions to prevent UDAPs involve
savings associations providing disclosures to consumers so that consumers will
know their rights and responsibilities as cosigners on consumer loans and have
an opportunity to opt-out of receipt of overdraft services on deposit accounts
and the fees associated with such services.
OTS issued an advance notice
of proposed rulemaking seeking comment. 72 FR 43570 (August 6, 2007). No
comments specifically addressed PRA burden.
9.
Payment to respondents
OTS
provides no payments or gifts to respondents.
10.
Confidentiality
The
final rule does not contain any requirements for thrifts to report information
to OTS. To the extent OTS obtains information about thrifts’
compliance, the Freedom of Information Act, the Trade Secrets Act, Executive
Order 12,600, Treasury Department regulations at 31 CFR pt. 1, and OTS
regulations at 12 CFR pts. 505 and 510 will apply.
11.
Information of a Sensitive
Nature
None.
12.
Burden estimate
OTS believes that most covered
entities already comply with its Credit Practices Rule and provide opt outs so
that consumers may chose whether to accept overdraft protection programs.[1]
OTS’ estimates
attribute all burdens to covered entities, which are entities directly subject
to the requirements of the final rulemaking. A covered entity that
outsources activities to a third-party service provider is, in effect,
reallocating to that service provider the burden that it would otherwise have
carried itself. Under these circumstances, burden is, by contract,
shifted from the covered entity to the service provider, but the total amount
of burden is not increased. Thus, third-party service provider burden is
already included in the burden estimates provided for covered entities.
Number of respondents:
826
Total estimated annual burden: 19,824 hours
13.
Estimate of
annualized costs to respondents
Do you have any idea how much it will cost
the institutions to implement these regulations?
14.
Estimate of
annualized costs to the government
This is the number of Federal employees
and their hourly salary times the amount of time it takes review the collection
requirements submitted by the institutions
15.
Analysis of change
in burden
OTS is citing an increase in the burden inventory of 19,824 hours as a program
change.
16. Information regarding
collections whose results are planned to be published for
Statistical use
The results of these collections will not
be published for statistical use.
17. Display of expiration
date
Are there any forms?
18. Exceptions to
certification statement
None.
B.
STATISTICAL METHODS
Not applicable.