3170-0022 Supporting Statement A (2015 renewal)_FINAL

CONSUMER FINANCIAL PROTECTION BUREAU
GENERIC INFORMATION COLLECTION REQUEST
SUPPORTING STATEMENT PART A
GENERIC INFORMATION COLLECTION PLAN FOR THE DEVELOPMENT
AND/OR TESTING OF MODEL FORMS, DISCLOSURES, TOOLS AND OTHER
SIMILAR RELATED MATERIALS
(OMB CONTROL NUMBER: 3170-0022)

Abstract
This is a request for a generic clearance for the Consumer Financial Protection Bureau (“CFPB,”
or “Bureau”) to allow for qualitative testing of disclosures and related materials relating to the
features of consumer financial products and services. The research will result in
recommendations for the development of and revisions to such disclosures and related materials.
The research activities may be conducted by the Bureau or external parties such as, for example,
contractors retained by the Bureau, and will employ cognitive psychological testing methods.
This approach has been demonstrated to be feasible and valuable by the CFPB and other agencies
in developing disclosures and related materials. The planned research activities will be
conducted with the goal of creating effective disclosures and related materials that will help
consumers understand the features of consumer financial products and services.
A. JUSTIFICATION
1. Circumstances Necessitating the Data Collection
This is a request for a three-year generic clearance to collect information to allow the Consumer
Financial Protection Bureau (“CFPB,” or “Bureau”) to conduct qualitative testing of disclosures
and related materials relating to the features of consumer financial products and services the
CFPB is authorized to regulate. These include, for example, mortgage origination and servicing,
credit cards, checking accounts, private education loans, payday loans, debt collection, money
services (such as remittances), and check cashing. Such testing could relate to consumer
disclosures, including model forms and sample forms that may be used to inform how
information should be disclosed. Related materials may also include electronic disclosure
methods (such as web based forms), educational materials (such as pamphlets prepared to
improve financial literacy), or compliance guides used to inform consumers and industry about
consumer financial protection obligations (such disclosures and related materials referred to
collectively as “Consumer Tools”). 1

1

The term “Consumer Tools” is used in this supporting statement for ease of reference throughout the document.
Page 1 of 10

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”)
and other federal consumer financial laws, the CFPB is required and/or authorized to develop
disclosures and related materials relating to the features of consumer financial products and
services. As a general matter, section 1021(b)(1) of the Dodd-Frank Act authorizes the Bureau to
exercise its authorities under Federal consumer financial law for the purposes of ensuring that,
with respect to consumer financial products and services, consumers are provided with timely
and understandable information to make responsible decisions about financial transactions.
Further, section 1032(a) of the Dodd-Frank Act authorizes the Bureau to prescribe rules to ensure
that the features of any consumer financial product or service, both initially and over the term of
the product or service, are fully, accurately, and effectively disclosed to consumers in a manner
that permits consumers to understand the costs, benefits and risks associated with the product or
service, in light of the facts and circumstances. Section 1032(b) provides that any rule prescribed
under this section requiring disclosures may include a model disclosure form. Section 1032(b)(3)
requires consumer testing to validate any model forms issued pursuant to section 1032(b). The
CFPB is also required from time to time to issue reports on various consumer protection issues,
and is authorized under the Dodd-Frank Act to engage in general monitoring and research
activities to support its rulemaking and consumer education functions.
Consumer research and testing is often useful to enhance the value of consumer financial
disclosure materials to consumers and industry compliance with CFPB regulations by, for
example, improving the quality of the disclosure materials’ design and content. Consumer
financial disclosure materials may help, among other things, to (1) facilitate comparison
shopping by consumers with respect to consumer financial products and services, (2) ensure that
the features of particular consumer financial products and services are fully, accurately, and
effectively disclosed to consumers in a manner that permits consumers to understand the costs,
benefits, and risks associated with the product or service both initially and over the term of the
product or service, and (3) assist covered entities in complying with applicable regulations.
The CFPB has engaged and anticipates continuing to engage the public to obtain feedback about
disclosures and related materials it tests. The collection of data from the public allows the
Bureau to obtain a wide variety of perspectives to supplement the qualitative testing. This
methodology is consistent with the Administration’s core goals of transparency, which “promotes
accountability by providing the public with information about what the Government is doing,”
and participation, which “allows members of the public to contribute ideas and expertise so that
their government can make policies with the benefit of information that is widely dispersed in
society.” 2
This generic clearance request will be used to conduct qualitative testing of disclosures and
related materials relating to the features of consumer financial products and services. The CFPB
will not use this generic clearance for quantitative testing. The CFPB anticipates using the
2

Open Government Directive. December 8, 2009.
.
Page 2 of 10

results of the qualitative testing approved under this generic clearance for formative, cognitive
research. To illustrate, the CFPB conducted three rounds of qualitative testing of mortgage
servicing disclosure forms between February and April 2012 under an Emergency Clearance, to
allow for qualitative testing of certain mortgage servicing disclosures required by Title XIV of
the Dodd-Frank Act. The results have helped to inform the CFPB in developing its notice of
proposed rulemaking with respect to the mortgage servicing disclosure regulations required by
Title XIV of the Dodd-Frank Act. In addition, CFPB has several qualitative testing efforts
underway under the existing clearance, including qualitative testing of prepaid account disclosure
forms. Earlier rounds of the prepaid account disclosure testing conducted between February and
April 2014 helped to inform the CFPB in developing its notice of proposed rulemaking with
respect to prepaid account disclosure regulations. CFPB anticipates ongoing rulemakings and
other initiatives for a range of consumer financial products to include consumer testing of
potential disclosure forms. Other projects anticipated by the Bureau could include testing of
compliance guides and programs that may be provided to industry participants to determine if
such guides assist in compliance with CFPB regulations, as resources permit.
The CFPB will review existing literature on consumer behavior in designing, developing, and
testing disclosures to evaluate and improve their effectiveness in satisfying statutory
requirements; conveying the costs, risks, and benefits of particular consumer financial products
and services; and helping consumers understand and make decisions concerning the proposed
consumer finance transaction. Further, research with industry participants is useful to improve
industry compliance with CFPB regulations. For example, the CFPB may use research
conducted under this generic clearance to design and test electronic tools that engage with
consumers and industry participants about compliance with CFPB regulations.
The use of a generic clearance will allow the CFPB to obtain useful data in a timely manner. In
CFPB’s experience, the design and testing of disclosures and related materials require numerous
iterations of disclosure forms and rounds of qualitative testing of those iterations. This process is
time- and resource-intensive, requiring a thorough analysis of the data collected from each round,
revision of the disclosures and related materials based on those data, and a revision of the
specific questions that will be asked at qualitative testing to match the disclosure or related
material. A generic clearance for the qualitative testing process will allow the Bureau to focus its
efforts on design and evaluation, so that the Bureau may conduct these tasks in an as efficient and
timely manner as possible.
An internal review of all proposed data collections will be performed to ensure the following:
•
•
•
•

Consistency with CFPB mission and strategic objectives;
Technical adequacy in issues, such as frame, participant and sample selection, recording
and analysis;
Minimized burden on the participants;
Privacy of participants and internet respondents information to the extent permitted by
law, including section 1022(c)(8) of the Dodd-Frank Wall Street Reform and Consumer
Page 3 of 10

•
•
•

Protection Act and other applicable laws;
Consistency with this generic clearance;
Consistency with applicable law and regulation; and
All data collections are truly voluntary.

Lastly, with respect to any disclosure regulation, the Bureau notes that in addition to consumer
research and testing, the Bureau will generally go through the formal notice-and-comment
process to give all stakeholders the opportunity to provide input. For example, the CFPB
published its proposed rulemaking on prepaid accounts, including proposed disclosure
requirements, in the Federal Register on Dec. 23, 2014 (79 FR 77102) and provided an
appropriate period of public comment on the rule. We anticipate doing the same for all future
rulemakings and other Bureau actions.
2. Use of the Information
The information collected will be used to inform the CFPB regarding the design, development, or
evaluation of disclosures and related materials relating to the features of consumer financial
products and services. Data collection tools will include, among other things, consent forms,
participant questionnaires, cognitive one-on-one think-aloud interviews, and electronic feedback
tools, as appropriate.
The information collected during qualitative testing will inform, among other things, the design
and content of disclosures and related materials relating to the features of consumer financial
products and services, using an iterative process to improve the draft versions of such
disclosures. The data will be analyzed to determine what elements of the disclosures are
effective and what elements need revision and will be used to inform CFPB staff decisions
regarding alterations or revisions to the disclosures. The CFPB anticipates conducting iterative
testing to improve the disclosures and related materials.
Information collected under qualitative testing approved under this generic clearance is not meant
to be, and will not be treated as, a sample that is statistically generalizable to the overall
American population. The testing results are formative in nature and will be clearly portrayed as
such in any presentation of the results. The results of qualitative testing conducted under this
generic clearance is expected to result in improved disclosures and related materials
3. Use of Information Technology
The CFPB anticipates collecting data through individual as well as group interviews, which may
be conducted with or without computer assistance, as well as through the use of non-electronic
tools (such as hand-written notes or responses) and electronic tools (such as audio- and videorecordings or eye tracking software). The CFPB notes that participation will be entirely voluntary
and individuals may elect to discontinue providing feedback at any time.
4. Efforts to Identify Duplication
Page 4 of 10

This research contemplated under this clearance will not duplicate any outside-of-government
research effort, as its purpose is not to replicate survey research studies. The research is
necessary to design, develop, and implement disclosures and related materials, including model
forms and disclosures contemplated by the Dodd-Frank Act and other federal consumer financial
laws. CFPB staff working on the development of disclosures and related materials are cognizant
of current research being done in the field of disclosure design and development. The CFPB will
continue to monitor research on disclosures and related work of researchers and other Federal
regulatory agencies to ensure that the CFPB’s research techniques reflect current knowledge and
best practices.
5. Efforts to Minimize Burdens on Small Entities
Data collections under this clearance are not anticipated to burden small entities significantly.
The CFPB anticipates that the majority of information collection projects will collect information
from individuals, not small entities.
In certain circumstances, the CFPB may collect information from small entities. Such research
may include, for example, industry members as participants to access their perspective and
knowledge in using the disclosures or other similar related materials (such as, for example, tools
relating to compliance with CFPB regulations), and communicating information to consumers
regarding consumer financial products or services. The CFPB may conduct small entity usability
testing to learn how disclosures and related materials work when integrated into small entities’
existing protocols and practices. Further, the CFPB may utilize online tools to obtain feedback
and small entities may choose to participate through the use of those tools. Participation through
such online methods should involve an extremely low burden.
All efforts will be made to minimize the burden on small entities in the event that data will be
needed pertaining to these entities. The CFPB anticipates that details regarding such efforts will
be provided in each collection request.
6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
The CFPB anticipates that individuals that participate in information collection projects will only
participate once, so frequency of data collection is not an applicable concern. For each data
collection project submitted hereunder, if the information is not collected, it will not be possible
to evaluate the effectiveness of the Consumer Tools under evaluation.
7. Circumstances Requiring Special Information Collection
No special circumstances require the collection to be conducted in a manner inconsistent with the
guidelines in 5 CFR 1320.5(d)(2).
8. Consultation Outside the Agency
Page 5 of 10

When this clearance was first proposed, comments were solicited in the Federal Register on
November 2, 2011. 76 Fed. Reg. 67668 (Nov. 2, 2011). The CFPB carefully considered the
comments we received at that time. In addition, in accordance with 5 CFR 1320.8(d)(1), the
Bureau has published a notice in the Federal Register allowing the public 60 days to comment on
this proposed renewal of the request for clearance to conduct research. No Comments were
received. Further, and in accordance with 5 CFR 1320.5(a)(1)(iv), the Bureau 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
Respondents for activities conducted in a setting that are not the respondents’ home or over the
phone (that is, cognitive interviews and focus groups) under this clearance will receive a small
stipend. This practice has proven necessary and effective in recruiting subjects to participate in
this small-scale research, and is also employed by the other Federal agencies. The incentive for
participation in an interview or testing session lasting up to one hour will usually be $40, and for
participation in activities lasting longer than 1 hour or where successful recruitment may require
higher incentives, such as for extensive travel or to recruit special populations, will generally
range from $50-$75. CFPB may provide smaller incentives than these amounts at its discretion;
however, any requests for larger amounts will be justified in writing to OMB. The amount of any
reimbursement requested and the justification for the amount will be provided in each collection
request.
10. Assurances of Confidentiality
The information collected under this generic clearance by contractors may include direct
identifying personal information for the purpose of contacting participants. These may include
name and contact information. Information collected under this generic clearance may also
include personally identifiable information (PII) that are not direct identifiers such as a
participant’s gender or age, which may be provided to the CFPB to be used in analysis of the
data. However, the CFPB will only receive and keep response data stripped of direct identifying
personal information. The CFPB will not seek to collect, and will never retain individual-level
data that is personally identifiable or could be aggregated to identify a test subject personally.
CFPB shall treat the information in accordance with applicable federal law, including but not
limited to the Bureau’s confidentiality rules, 12 C.F.R. Part 1070, and the federal laws and
regulations that apply to federal agencies for the protection of privacy, confidentiality, security
and integrity. The CFPB anticipates imposing appropriate privacy requirements in connection
with any information collection projects to ensure that PII will not be disclosed, to the extent
permitted by applicable law. For example, it is the CFPB’s practice to require that contractors
that assist the CFPB with design and testing projects to comply with contractual requirements
regarding information release, non-disclosure of personal information, privacy, and security.
For information collections under this generic clearance, the CFPB provides notice to individuals
Page 6 of 10

that explain how their information will be used through Privacy Act Statements. Privacy Act
Statements are made available prior to the collection of information and explain whether the
information is mandatory or voluntary; the authority for the information collection; whether there
are any opportunities to consent to sharing and submission of information; how the information
will be secured, and what System of Records applies. Notice will be provided at all phases of
recruitment and participation if electronic tools (such as audio- and video-recordings or eye
tracking software) are used.
To reduce the risk of breaches of confidentiality, the CFPB designs recruitment materials so as
not to disclose sensitive information about those it seeks to recruit, and uses appropriate security
controls to protect information used in research. The CFPB also takes steps to reduce the risk of
misuse of information collected for research. Misuse might involve secondary types of research
that are incompatible with the purposes of the initial collection, or a use of the information that
individuals do not understand or to which they have not provided consent. To reduce the risk of
misuse, the CFPB minimizes access to PII based on need-to-know and stipulates, in most
instances, that contractors that collect data on behalf of the Bureau remove or redact all direct
identifying PII, as defined by the Bureau’s privacy office, before transmitting data to the Bureau.
When appropriate, research results will be presented in aggregated form to protect the
confidentiality of firms or consumers, and any publicly released version of data will use
disclosure protection techniques (e.g., rounding, imputation, exclusion of some variables,
aggregation of categorical responses) to minimize the risk of releasing personally identifiable or
otherwise sensitive information (12 CFR 1070.40 et seq.). The Bureau treats the information
collected from participating persons and institutions in a manner consistent with our
confidentiality regulations, and all data and analyses are subject to legal and privacy review prior
to their release.
The Bureau also evaluates the potential privacy risk and harm to individuals of specific research
relative to that authorized purpose, and vets research proposals to ensure that they serve an
authorized purpose. Research conducted under this generic clearance will be consistent with the
Privacy Act and the E-Government Act. The requisite SORNs and PIAs will document the
collection, use, disclosure, and retention of PII and the technical, administrative, and physical
controls used to minimize privacy risks. The SORNs and PIAs will be updated as appropriate,
and details regarding information handling will be specified in individual submissions under this
generic clearance.
11. Justification for Sensitive Questions
The most sensitive information expected to be collected in connection with the qualitative
research activities is demographic data about the respondent, such as age range, race, income,
education level and past or present experiences with consumer financial products. This will be
collected voluntarily and is necessary to ensure the CFPB has a sufficient demographic mix for
its purposive sample. The CFPB will follow OMB guidance with respect to how the information
about demographic data is gathered. The CFPB shall set forth protocols to ensure that each
Page 7 of 10

participant is not identifiable through PII and that none of the demographic or consumer financial
experience data will be tied in reporting to any specific individual.
12. Estimated Burden of Information Collection
Process

Informational
outreach
Screening
One-on-one
interviews
Focus Groups
Website
feedback 4
Annual Total:
Three Year
Total:

Number of
respondents

Number of
responses per
respondent

Number
of annual
responses

Average
burden per
response
(hours)

Total burden
(hours)

600

1

600

1

600

8,000
1,500

1
1

8,000
1,500

.25
1.75

2,000
2,625 3

450
13,000

1
1

450
13,000

1
.25

450
3,250

21,000 5
63,000

……………
……………

21,000
63,000

…………..
…………..

8,925
26,775

The estimates are based on the average length of time it would take to complete 12 of this type of
research project based on similar research conducted by the CFPB and other regulators in
developing model forms, disclosures, tools, and other similar related materials. In addition, the
CFPB adjusted the calculations to reflect additional burden in the case of testing of compliance
tools with industry participants.
13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers
There will be no annualized capital or start-up costs for the respondents to collect and submit this
information.
14. Estimated Cost to the Federal Government
There will be no annualized capital/start-up costs for the government to receive this information.
This testing is funded with non-appropriated funds. Individual project costs will be provided in
3

This includes up to 45 minutes of travel to and from the sites where such interviews take place
For example, the Bureau established the Know Before You Owe site on the CFPB website to obtain a wide variety
of perspectives to support the qualitative testing of mortgage loan disclosure forms. The Bureau believes the use of
such sites, including sites similar to the Know Before You Owe site, create an efficient means of obtaining
information for an information collection while minimizing participant burden.
5
The respondents for information outreach, Focus Groups and One on One interviews are subsets of those who
respond to the screener
4

Page 8 of 10

each collection request.
15. Program Changes or Adjustments

Total 3-Year Burden
Requested
Total Annual Burden
Requested
Current OMB
Inventory
Difference (+/-)
Program Change
Discretionary
New Statute
Violation
Adjustment

Total
Respondents
63,000

Annual
Responses
63,000

21,000

Burden Hours
26,775

Cost Burden
(O & M)
$0

21,000

8,925

$0

25,050

25,050

8,925

$0

+37,950
0
0
0
0
+37,950

+37,950
0
0
0
0
+37,950

+17,850
0
0
0
0
+17,850

$0
$0
$0
$0
$0
$0

Although the number of annual responses has decreased from 25,050 to 21,000, the CFPB is now
including in its burden estimates the time it takes respondents to travel to and from testing sites,
leading to a more accurate estimate of the total burden this information collection imposes on
respondents. As such the burden hours have remained constant even though the number of
responses has decreased. In addition, in item 12 we are now also including the total burden for
all three years for which we are seeking approval of this collection, and not just the annual
burden, to facilitate a better public understanding of our burden estimates.
16. Plans for Tabulation, Statistical Analysis, and Publication
Projects conducted under this generic clearance may include survey methodological and
questionnaire quality assurance, which encompass the exploratory activities leading to the
evaluation of data quality. Projects conducted under this generic clearance may also include the
design and development of disclosures and related materials relating to consumer financial
products and services.
The results of these investigations will be used primarily to improve the quality of data collection
and assure total collection quality as it relates to data management. Because the CFPB is using
the latest techniques and cognitive psychological testing methodology, methodological papers
may be written that include some tallies of response problems, recall strategies, or results from
other testing procedures used, etc. The methodological results may be included as a
methodological appendix or footnote in a report containing data from a larger data collection
effort. The methodological results of this research may be prepared for presentation at
professional meetings or publication in professional journals. In addition, it is anticipated that
Page 9 of 10

information collections under this generic clearance may be included in reports that will be
published discussing the methodology and results of the data collection to inform future
formative, cognitive research. However, these results will not be presented as estimates about a
population.
17. Display of Expiration Date
The OMB control number and expiration date associated with this PRA submission will be
displayed on the Federal government’s electronic PRA docket at www.reginfo.gov. In addition,
all instruments used for collecting data under any collection submitted under this generic
information collection plan will display the OMB control number wherever and when
appropriate.
18. Exceptions to the Certification Requirement
The Bureau certifies that 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.

Page 10 of 10