3170-0002 FCRA_Supporting_Statement (01-8-13)

Renewal Request 2013
CONSUMER FINANCIAL PROTECTION BUREAU
INFORMATION COLLECTION REQUEST – SUPPORTING STATEMENT
FAIR CREDIT REPORTING ACT (REGULATION V) 12 CFR 1022
(OMB CONTROL NUMBER: 3170-0002)

TERMS OF CLEARANCE: The Office of Management and Budget (OMB) Notice of
Action dated July 8, 2012 provides “In the interest of transparency, upon its next
submission, CFPB resubmit with model disclosures uploaded in supplementary
documents sections [of OMB’s ROCIS system].” As instructed, the Bureau has uploaded
the pertinent model disclosures into the ROCIS system.

ABSTRACT: The consumer disclosures included in Regulation V are designed to alert
consumers that a financial institution furnished negative information about them to a
consumer reporting agency, that they have a right to opt out of receiving marketing
materials and credit or insurance offers, that their credit report was used in setting the
material terms of credit that may be less favorable than the terms offered to consumers
with better credit histories, that they maintain certain rights with respect to a theft of their
identity that they reported to a consumer reporting agency, that they maintain rights with
respect to knowing what is in their consumer reporting agency file, that they can request a
free credit report, and that they can report a theft of their identity to the CFPB.
Consumers then can use the information provided to consider how and when to check and
use their credit reports.

A. JUSTIFICATION
1. Circumstances Necessitating the Data Collection
On July 21, 2010, President Barack Obama signed into law the Dodd-Frank
Wall Street Reform and Consumer Protection Act, P.L. 111-203, 124 Stat. 1376 (2010)
(Dodd-Frank Act). In addition to a comprehensive package of financial regulatory
reform measures, the Dodd-Frank Act transferred rulemaking authority for most
provisions of the Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681 et seq., to the
Bureau of Consumer Financial Protection (CFPB), effective July 21, 2011. 1
Section 1088 of the Dodd-Frank Act, read in combination of Section 1061,
amends the FCRA to vest the CFPB with rulemaking authority over most provisions of
the FCRA, excepting providing rulemaking authority over certain motor vehicle dealers
engaged primarily in the sale and servicing of motor vehicles, the leasing and servicing of

1

See Sections 1061 and 1088 of the Dodd-Frank Act.

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motor vehicles, or both. The Dodd-Frank Act also provided the CFPB with enforcement
authority over certain institutions that have been under the jurisdiction of other agencies.
Section 1088 of the Dodd-Frank Act states that the CFPB “shall prescribe such
regulations as are necessary to carry out the purposes of this title, except with respect to
sections 615(e) and 628 [of the FCRA],” and therefore on December 21, 2011, the CFPB
issued an interim final rule (76 FR 79308) establishing the CFPB’s Regulation V (12
CFR 1022). The new Regulation V assembles applicable regulations, commentary, and
model notices 2 formerly promulgated by the transferor agencies, with minor revisions to
reflect accurate references and contact information.
Accordingly, the CFPB requests approval from the Office of Management and
Budget (OMB) to continue requiring the disclosures described within Regulation V from
certain populations over which the CFPB now has enforcement authority. This request is
an extension without change of a currently approved OMB control number.

2. Use of the Information
The consumer disclosures included in Regulation V are designed alert consumers
that a financial institution furnished negative information about them to a consumer
reporting agency, that they have a right to opt out of receiving marketing materials and
credit or insurance offers, that their credit report was used in setting the material terms of
credit that may be less favorable than the terms offered to consumers with better credit
histories, that they maintain certain rights with respect to a theft of their identity that they
reported to a consumer reporting agency, that they maintain rights with respect to
knowing what is in their consumer reporting agency file, that they can request a free
credit report, and that they can report a theft of their identity to the CFPB. Consumers
then can use the information provided to consider how and when to check and use their
credit reports.
3. Use of Information Technology
Consistent with the aims of the Government Paperwork Elimination Act, PL 105277, Title XVII, 112 Stat. 2681-749, 44 U.S.C. § 3504 note, the forms allow creditors to
use applicable technologies to reduce compliance costs. Financial institutions may use
any existing technology relevant to producing the notice, obtaining the consumer opt out
determination, and maintaining records of the notice and opt out determination.
4. Efforts to Identify Duplication
There is no duplication. The information is not available from any other source.

2

The disclosures requirements are substantially the same as those previously provided by model forms
promulgated by the Board, the FDIC, the NCUA, the OCC, the OTS and the FTC.

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5. Efforts to Minimize Burdens on Small Entities
Regulation V includes model notices that businesses may use to comply with
regulatory requirements, and which are very similar or identical to previous model
notices circulated by the Board, the FDIC, the NCUA, the OCC, the OTS, and the FTC.
By minimizing the proposed alterations to model forms, the CFPB has sought to help
businesses of all sizes reduce the burden or inconvenience of complying with the
amendments to the regulations.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
The frequency of the disclosure requirements contained in Regulation V are
transactional based (on occasion). Less frequent disclosures would reduce the protections
to consumers that were contemplated by FCRA and Regulation V. The burden of
complying is, however, diminished by the provision of model notices and that creditors
may continue to use previous versions of the model notices.
7. Circumstances Requiring Special Information Collection
The collections of information in Regulation V 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 July 25, 2013 the Bureau has
published a notice Federal Register (77 FR 44930) allowing the public 60 days to
comment on the proposed extension of this currently approved collection of information.
The Bureau receive two comments in response to this notice; however, neither of the
comments addressed recordkeeping or disclosure requirements of Regulation V nor any
other of the Paperwork Reduction Act related issues contemplated by this notice.
Further and in accordance with 5 CFR 1320.5(a)(1)(iv), the Bureau has published
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
Not applicable. No assurance of confidentiality is necessary because the
information collections do not require creditors to register or file any documents with the
CFPB.

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11. Justification for Sensitive Questions
Not applicable. There are no reporting requirements contained in Regulation V,
the information collections are limited to recordkeeping and disclosure requirements.
Therefore, no sensitive or personally identifying information is collected by the CFPB as
a result of the requirements contained in Regulation V.
12. Estimated Burden of Information Collection
Hours: 4,156,000
CFPB’s estimates the burden for the recordkeeping and disclosure
requirements under Regulation V remains the same as it was before the regulation
was restated by the CFPB. Prior to the passage of the Dodd-Frank Act, the
recordkeeping and disclosure burdens for Regulation V allocated to the prudential
regulators and the FTC were approximately 19,017,000 hours. In light of the
changes made by the Dodd-Frank Act, roughly 4,156,000 hours of that burden is
being reallocated to the CFPB. Specifically, CPPB is being allocated burden for 155
depository institutions (comprising depository institutions 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 V. 3 The CFPB is also being allocated half of the Federal
Trade Commission (FTC) burden amount after subtracting the burden which the FTC
has attributed to itself for motor vehicle dealers. 4
Burden Summary:
Number of Respondents:
Total Annual Responses:
Total Annual Burden Hours:

155
677,536
4,156,000

Associated Labor Costs: $ 110,234,000
The CFPB calculated labor costs by applying appropriate hourly cost figures to
the burden hours described above. The hourly rates 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
3

These include 25 from the Board, 65 from the OCC, 21 from the OTS, 3 from the NCUA, and 41 from
the FDIC.
4
The Dodd-Frank Act exempts certain motor vehicle dealers from CFPB’s enforcement
authority. However, due to the difficulty of making a reliable estimate of those dealers, the FTC has
attributed to itself the PRA burden for all motor vehicle dealers. This attribution does not change actual
enforcement authority.

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allocated to the CFPB under Regulation V are $92,123,000. 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
V.

13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers
There are no additional costs other than those captured above in Item 12.

14. Estimated Cost to the Federal Government
As the CFPB does not collect any information, the cost to the CFPB is negligible.
15. Program Changes or Adjustments
The Bureau reports no program changes to Regulation V at this time. The
adjustment of -581,120 hours results from the removal of previously estimated one time
burden. As a result of the previous restatement of Regulation V, the Bureau estimated a
one-time burden on creditors that needed to update some or all of eleven separate forms
with references to the CFPB, among other changes.
16. Plans for Tabulation, Statistical Analysis, and Publication

Not applicable.
17. Display of Expiration Date

Not applicable. There are no forms or other information collection instruments
associated with this OMB control number. The OMB control number and currently
assigned expiration date are displayed on OMB’s public-facing docket at
www.reginfo.gov.

18. Exceptions to the Certification Requirement

The Bureau certifies the this collection of information is consistent with the
requirements of 5 CFR 1320.9, and the related provisions of 5 CFR 1320.8(b)(3) and is
not seeking an exemption to these certification requirements.

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