RegDD_20150522_omb

Supporting Statement for the Disclosure Requirements Associated with
CFPB’s Regulation DD (Truth in Savings) (OMB No. 7100-0271)
Summary
The Board of Governors of the Federal Reserve System, under delegated authority from
the Office of Management and Budget (OMB), proposes to extend for three years, without
revision, the mandatory Disclosure Requirements Associated with CFPB’s Regulation DD
(Truth in Savings) (Reg DD; OMB No. 7100-0271). Although the Consumer Financial
Protection Bureau (CFPB) is now responsible for issuing Truth in Savings Act (TISA)1
regulations, the Federal Reserve continues to be responsible under the Paperwork Reduction Act
(PRA) for renewing every three years the information collections required by institutions the
Federal Reserve Board supervises. The PRA classifies reporting, recordkeeping, or disclosure
requirements of a regulation, including Regulation DD, as an information collection.2
The Federal Reserve Board accounts for the paperwork burden associated with the
regulation only for Federal Reserve Board-supervised institutions.3 The respondent burden for
the 1,042 Federal Reserve Board-supervised entities is estimated to be 156,300 hours.4
Background and Justification
TISA was contained in the Federal Deposit Insurance Corporation Improvement Act of
1991. The purpose of TISA and its implementing regulation is to assist consumers in comparing
deposit accounts offered by institutions, principally through the disclosure of fees, the annual
percentage yield (APY), and other account terms. TISA requires depository institutions to
disclose key terms for deposit accounts at account opening, upon request, when changes in terms
occur, and in periodic statements. It also includes rules about advertising for deposit accounts.
TISA does not provide exemptions from compliance for small institutions.
On July 21, 2011, rulemaking authority for TISA was transferred from the Federal
Reserve Board to the CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 (Dodd-Frank Act). In December 2011, the CFPB published an interim final rule
establishing its own Regulation DD to implement TISA at 12 C.F.R. part 1030 that substantially
duplicated the Federal Reserve Board’s Regulation DD. The Federal Reserve Board repealed its
version of Regulation DD (12 C.F.R. part 230) effective June 30, 2014.5
1

TISA was enacted in 1991 and is codified at 12 U.S.C. § 4301-13. Regulation DD is located at 12 C.F.R. part
1030.
2
44 U.S.C. § 3501 et seq.
3
Other federal agencies account for the paperwork burden that Regulation DD imposes on the institutions for which
they have supervisory authority.
4
The Federal Reserve Board accounts for the following types of institutions, except those that are supervised by the
CFPB: state member banks, branches and agencies of foreign banks (other than federal branches, federal agencies,
and insured state branches of foreign banks), commercial lending companies owned or controlled by foreign banks,
and organizations operating under section 25 or 25A of the Federal Reserve Act (12 U.S.C. § 601-604a; 611-631).
The CFPB supervises, among other institutions, insured depository institutions with over $10 billion in assets and
their affiliates (including affiliates that are themselves depository institutions regardless of asset size and
subsidiaries of such affiliates).
5
79 FR 30711 (May 29, 2014).

Description of Information Collection
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.
Subsequent Disclosures (Section 1030.5)
Change-in-terms notice (Section 1030.5(a))
Depository institutions are required to provide 30 days’ advance notice of any change
that may reduce the APY or adversely affect consumers, such as an increase in fees. Certain
types of events such as changes in the interest rate and APY for variable rate accounts are
exempt from this requirement.
Notice before 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 calendar 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 calendar 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.

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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 at least 10 calendar days
before maturity of the existing account.
Periodic Statement Disclosures (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 if an advertisement
states an APY or promotes the payment of overdrafts.
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. 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 Website,
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.
Time Schedule for Information Collection
Information collection pursuant to Regulation DD is triggered by specific events, and
disclosures must be provided to consumers within the time periods established by the TISA and
regulation. There is no reporting form associated with the requirements of Regulation DD;
disclosures pertaining to a particular transaction or consumer account are not publicly available.

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Disclosures of an institution’s account terms that appear in advertisements are available to the
public.
Legal Status
The Federal Reserve Board’s Legal Division has determined that section 269 of TISA
(12 U.S.C. § 4308) authorizes the CFPB to issue regulations to carry out the provisions of the
act. The Federal Reserve Board’s imposition of the disclosure requirements on Federal Reserve
Board-supervised institutions is authorized by the Dodd-Frank amendments to TISA (12 U.S.C.
§ 4309), and the provisions of Regulation DD (12 C.F.R. §§ 1030.1(a), 1030.2(j)).6 An
institution’s disclosure obligations under Regulation DD are mandatory. The Federal Reserve
does not collect any information; therefore, no issue of confidentiality arises.
Consultation Outside the Agency
On December 11, 2014, the Federal Reserve published a notice in the Federal Register
(79 FR 73583) requesting public comment for 60 days on the extension, without revision, of this
information collection. The comment period for this notice expired on February 9, 2015. The
Federal Reserve did not receive any comments. On February 24, 2015, the Federal Reserve
published a final notice in the Federal Register (80 FR 9719).
Estimate of Respondent Burden
The general account disclosures (section 1030.4) are in standardized, machine-generated
form and do not substantively change from one individual account to another; thus, the cost to
the public is small. Subsequent notices (section 1030.5) and periodic statements (section 1030.6)
are machine-generated reports of information that for the most part would be captured by the
institution and disclosed to the consumer for business purposes; the marginal cost of complying
with these regulations is considered to be small. The cost of complying with the advertising
rules (section 1030.8) is also considered to be small. The cost of complying with the additional
disclosure requirements for overdraft services (section 1030.11) is sufficiently accounted for
under the cost estimates for periodic statement (section 1030.6) and advertising (section 1030.8)
requirements. The regulation does not specify the kind of records that must be retained for this
purpose.
The current total annual burden is estimated to be 156,300 hours for the 1,042 institutions
supervised by the Federal Reserve Board that are deemed respondents for purposes of the PRA.
This estimated burden arises exclusively from the disclosures required under the regulation and
is shown in the table below. These disclosure requirements represent less than 1 percent of total
Federal Reserve System annual paperwork burden.
The CFPB has only taken the information collection burden for those “depository entities for which the CFPB
now has primary enforcement authority” under Federal consumer financial protection laws after passage of DoddFrank. The remainder of the information collection burden continues to reside with “the appropriate Federal
banking agency” – in the Federal Reserve Board’s case, as detailed in footnote 3. See the Supporting Statement
accompanying the CFPB’s Information Collection Request Package to OMB regarding Regulation DD:
http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201204-3170-004.
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4

Estimated
average time
per response

Estimated
annual burden
hours

Number of
respondents7

Annual
frequency

Account disclosures
(Section 1030.4)

1,042

12

1 hour

12,504

Subsequent notices
(Section 1030.5)
Change in terms notices
(Section 1030.5(a))
Notices prior to maturity
(Sections 1030.5(b) and (c))

1,042

12

1.5 hours

18,756

1,042

12

1.5 hours

18,756

Periodic statement disclosure
(Section 1030.6)

1,042

12

8 hours

100,032

Advertising (Section 1030.8)

1,042

12

30 minutes

6,252

Reg DD

156,300

Total
The total annual cost to the public is estimated to be $8,088,525.8
Sensitive Questions

This information collection contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
Since the Federal Reserve does not collect any information, the cost to the Federal
Reserve System is negligible.

7

Of these respondents, 720 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $ 550 million in total assets) www.sba.gov/content/table-small-business-size-standards.
8
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$63, 15% Lawyers at $64, and 10% Chief Executives at $87). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
2014, published March 25, 2015, www.bls.gov/news.release/ocwage.nr0.htm. Occupations are defined using the
BLS Occupational Classification System, www.bls.gov/soc/.

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