3170-0004 TISA (DD) 2016 Renewal SS

30-day Federal Register and OMB Review

BUREAU OF CONSUMER FINANCIAL PROTECTION
PAPERWORK REDUCTION ACT SUBMISSION
INFORMATION COLLECTION REQUEST
SUPPORTING STATEMENT PART A
TRUTH IN SAVINGS ACT (REGULATION DD) 12 CFR 1030
(OMB CONTROL NUMBER: 3170-0004)
OMB TERMS OF CLEARANCE:
When the Office of Management and Budget (OMB) last approved the information
collections contained in 12 CFR 1030 and covered under OMB number 3170-0004, OMB
provided the following Terms of Clearance:
Pursuant to the previous terms of clearance, [Consumer Financial Protection
Bureau] CFPB will make sure to revise the collection, even within the 3 yearapproval period that OMB has granted, as revised estimates on burden and
cost estimates become available from CFPB's own research efforts and/or from
the other three agencies that enforce Reg DD (OCC/TRES, FDIC, and FRB).
In response to the above noted Terms of Clearance, the burden estimates in this
request have been revised based on the Consumer Financial Protection Bureau’s (CFPB)
own research and burden calculation methodologies See Item 12, 13, and 15 below.
ABSTRACT:
Consumers rely on the disclosures required by The Truth in Savings Act (TISA)
and Regulation DD to facilitate informed decision-making regarding deposit accounts
offered at depository institutions. Without this information, consumers would be severely
hindered in their ability to assess the true costs and terms of the deposit accounts offered.
Federal agencies and private litigants use the records to ascertain whether accurate and
complete disclosures of depository accounts have been provided to consumers. This
information also provides the primary evidence of law violations in TISA enforcement
actions brought by the CFPB. Without the Regulation DD recordkeeping requirement, the
CFPB's ability to enforce TISA would be significantly impaired.
JUSTIFICATION
1. Circumstances Necessitating the Data Collection
The Truth in Savings Act (TISA), 12 U.S.C. 4301 et seq., was enacted to enhance
economic stability, improve competition between depository institutions, and strengthen
consumers’ ability to make informed decisions regarding deposit accounts by requiring
uniformity in the disclosure of interest rates and fees. TISA assists consumers in
comparing deposit accounts offered by depository institutions, principally through the
disclosure of fees, the annual percentage yield, the interest rate, and other account terms.
Page 1 of 11

30-day Federal Register and OMB Review

The CFPB received rulemaking and shared enforcement authority of TISA
through the Dodd-Frank Act (Pub. L. 111–203, Sec. 1100B) 1 and the CFPB has
promulgated Regulation DD to implement TISA, as required by statute. Regulation DD
is located at 12 CFR 1030 and is available at www.ecfr.gov. The other agencies with
enforcement authority under this regulation and associated OMB control numbers are as
follows:

Other Federal Agencies with enforcement authority
for Regulation DD

Code of Federal
Regulations

OMB
Control
Number

Federal Reserve Board

12 CFR 1030

7100-0271

The Department of Treasury’s Office of the
Comptroller of the Currency

12 CFR 1030

1557-0176

Federal Deposit Insurance Corporation

12 CFR 230

3064-0084

TISA and Regulation DD require depository institutions to disclose yields, fees,
and other terms concerning deposit accounts to consumers at account opening, upon
request, and when changes in terms occur. Depository institutions that provide periodic
statements are required to include information about fees imposed, interest earned, and
the annual percentage yield (APY) earned during those statement periods. TISA and
Regulation DD mandate the methods by which institutions determine the account balance
on which interest is calculated. They also contain rules about advertising deposit
accounts and overdraft services.
Regulation DD applies to all depository institutions except credit unions. 2 The
information collected pursuant to Regulation DD is triggered by specific events and
disclosures and must be provided to consumers within the time periods established by
TISA and the regulation. There are no reporting forms associated with Regulation DD.
However, to ease the compliance cost (particularly for small entities), model disclosure
clauses and sample account forms are appended to the regulation.
The particular information collection requirements contained in Regulation DD
along with the utility of such requirements are discussed in Item 2 below.

1

Dodd-Frank Section 1029 generally excludes from this transfer of authority, subject to certain exceptions,
any rulemaking authority over a motor vehicle dealer that is predominantly engaged in the sale and servicing
of motor vehicles, the leasing and servicing of motor vehicles, or both.
2

Credit unions are covered by a substantially similar rule issued by the National Credit Union Administration,
found in 12 CFR Part 707.

Page 2 of 11

30-day Federal Register and OMB Review

2. Use of the Information
Federal agencies and private litigants use the records to ascertain whether accurate
and complete disclosures of depository accounts have been provided to consumers. This
information also provides the primary evidence of law violations in TISA enforcement
actions brought by the CFPB. Without the Regulation DD recordkeeping requirement, the
CFPB’s ability to enforce TISA would be significantly impaired.
Consumers rely on the disclosures required by TISA and Regulation DD to
facilitate informed decision making regarding deposit accounts offered at depository
institutions. Without this information, consumers would be severely hindered in their
ability to assess the true costs and terms of the deposit accounts offered. These
disclosures and provisions are necessary for the CFPB and private litigants to enforce
TISA and Regulation DD.
CFPB notes that Section 1030.3 of Regulation DD provides “General disclosure
requirements” the specific requirements for which are delineated in subsequent sections
of Regulation DD and summarized below. Additionally, CFPB notes that in regards to the
general disclosure requirements of Regulation DD, compliance with Regulation E (12
CFR Part 1005) is deemed to satisfy the disclosure requirements of Regulation DD when
certain conditions prevail. See Appendix D, Official Interpretations to Part 1030,
Supplemental I, Section 1030.3(c).
Account Disclosures (§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. Institutions are required to specify the
categories of transactions for which an overdraft fee may be imposed in the accountopening disclosures provided under TISA.
Subsequent Notices (§1030.5)
Change-in-terms notice (Section 1030.5(a)). Depository institutions are required
to provide 30 days’ notice of any change that may reduce the APY or adversely affect
consumers, such as a change 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 prior to 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
Page 3 of 11

30-day Federal Register and OMB Review

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 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 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.
•
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. The disclosures shall be mailed or delivered at least 10 calendar
days before maturity of the existing account.
Periodic Statement Disclosure (§1030.6)
Neither TISA nor the regulation mandates that depository institutions provide
periodic statements. However, if an institution chooses to provide periodic
statements, 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 (§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. This section specifies that additional disclosures are required if
advertisements discuss an annual percentage yield, bonuses, or overdraft features
(discussed in 1030.11).
Additional disclosure requirements for overdraft services (§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
Page 4 of 11

30-day Federal Register and OMB Review

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 Web site, 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.
Recordkeeping (§1030.9(c))
Section 1030.9(c) of Regulation DD requires depository institutions subject to
TISA to retain evidence of compliance with the regulation for two years after the date
disclosures are required to be made or action is required. Regulation DD also
provides that administrative agencies responsible for enforcing the regulation may
require depository institutions under their jurisdiction to retain records for a longer
period if necessary to carry out their enforcement responsibilities under TISA. The
recordkeeping requirement insures that records that might contain evidence of
violations of TISA remain available to Federal agencies, as well as to private
litigants.
3. Use of Information Technology
Regulation DD contains rules to establish uniform standards for using
electronic communication to deliver disclosures required under Regulation DD,
within the context of the Electronic Signatures in Global and National Commerce Act
(ESIGN), 15 U.S.C. 7001 et seq. 12 CFR 1030.3(a). These rules enable businesses to
utilize electronic disclosures and compliance, consistent with the requirements of
ESIGN. Use of such electronic communications is also consistent with the
Government Paperwork Elimination Act (GPEA), Title XVII of Pub. L. 105-277,
codified at 44 U.S.C. 3504, note. ESIGN and GPEA serve to reduce businesses’
compliance burden related to federal requirements, including Regulation DD, by
enabling businesses to use more efficient electronic media for disclosures and
compliance.
Page 5 of 11

30-day Federal Register and OMB Review

Regulation DD also permits depository institutions to retain records on
microfilm or microfiche or any other method that reproduces records accurately,
including computer programs. Depository institutions need only retain enough
information to reconstruct the required disclosure or other records. Comment 9(c)-2.
4. Efforts to Identify Duplication
The recordkeeping requirement of Regulation DD preserves the information
an affected entity uses in making disclosures and other required actions regarding
deposit accounts. The entity is the only source of this information. No other federal
law mandates its retention. State laws do not duplicate these requirements, although
some states may have other rules applicable to deposit accounts.
Similarly, covered entities are the only source of the information contained in
the disclosures required by the TISA and Regulation DD. No other federal law
mandates these disclosures. State laws do not duplicate these requirements, although
some states may have other rules applicable to deposit accounts.
Additionally, as noted above in Item 2, in regards to the general disclosure
requirements of Regulation DD, compliance with Regulation E (12 CFR Part 1005) is
deemed to satisfy the disclosure requirements of Regulation DD when certain
conditions prevail. See Appendix D, Official Interpretations, to Part 1030,
Supplemental I, Section 1030.3(c). Furthermore, CFPB’s Official Interpretations for
Section 1030.6, Periodic Statement Disclosures, may combine periodic statements
without triggering the disclosure requirements of that part so long as certain
conditions prevail. See Appendix D, Official Interpretations to Part 1030,
Supplemental I, Section 1030.6.
5. Efforts to Minimize Burdens on Small Entities
Most depository institutions today use some degree of computerization in their
business, and Regulation DD permits businesses to rely on computer support, among
other alternatives, to meet their recordkeeping and disclosure requirements. This
flexibility yields reduced recordkeeping and disclosure costs (See Item 3 above.)
Moreover, as noted previously, Regulation DD provides model forms and clauses that
may be used in compliance with its requirements. Correct use of these forms and
clauses insulates a depository institution from liability as to proper format.

6. Consequences of Less Frequent Collection and Obstacles to Burden Reduction
The current record retention period of two years supports the one-year statute
of limitations for private actions, and enforcement agencies’ need for sufficient time
to bring enforcement actions regarding deposit accounts. If the retention period were
shortened, consumers who sue under TISA, and the administrative agencies, might
Page 6 of 11

30-day Federal Register and OMB Review

find that depository institution records needed to prove violations of TISA no longer
exist.
As noted, the disclosure requirements are needed to facilitate comparison cost
shopping and to spur informed decision making regarding deposit accounts. Without
these requirements, consumers would not have access to this critical information.
Their right to sue under TISA would be undermined, and enforcement agencies could
not fulfill their mandate to enforce TISA.
7. Circumstances Requiring Special Information Collection
There are no special circumstances. The collection of information
requirements in the changes to Regulation DD 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), the Bureau has published a notice at
Federal Register allowing the public 60 days to comment on this proposed the
extension (renewal) of this currently approved collection of information. No
comments were received. Further, and in accordance with 5 CFR §1320.5(a)(1)(iv),
the Bureau has also 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
No payments or gifts are provided to respondents.
10. Assurances of Confidentiality
There is no part of the rule that mandates information collection by the CFPB. To
the extent that information covered by a recordkeeping requirement is collected by the
CFPB for law enforcement purposes, the confidentiality provisions of CFPB’s rules on
Disclosure of Records and Information, 12 CFR Part 1070, would apply.
The information that may be collected for law enforcement purposes would be
covered by the following Systems of Records Notices (SORNs): CFPB.004 Enforcement
Database, 76 FR 45757, that can be found at
https://www.federalregister.gov/articles/2011/08/01/2011-19424/privacy-act-of-1974-asamended; and the CFPB.018 CFPB Litigation Files SORN, 77 FR 27446, that can be
found at https://www.federalregister.gov/articles/2012/05/10/2012-11233/privacy-act-of1974-as-amended.
11. Justification for Sensitive Questions
Page 7 of 11

30-day Federal Register and OMB Review

The CFPB collects no information under Regulation DD, which requires institutions
to provide disclosures to consumers and keep records of those disclosures. No questions of
a sensitive nature are asked of respondents.
12. Estimated Burden of Information Collection
Exhibit 1: Summary of Burden Hours and Related Costs
Information
Collection
Requirement

No. of
Respondents

Annual
Responses

Average
Response
Time (hrs.)

Annual
Burden
Hours

Hourly
Rate

Labor Costs

§1030.4 Account disclosures
Delivery of
account opening
disclosures
[§ 1030.4(a)]
Providing account
disclosures upon
request
[§ 1030.4(a) (2)]

6,213

43,891,720

0.0167

731,529

$26.00

$ 19,070,045

6,213

n/a

0.00

0.00

$0.00

6,213

4,545,809

0.00

0.00

$0.00

6,213

10,257

0.00

0.00

$0.00

6,213

579,037,608

0.00

0.00

0.00

$0.00

6,213

n/a

0.00

0.00

0.00

$0.00

§1030.5 Subsequent disclosures
Change-in-terms
notice
[§ 1030.5(a)]
Notice prior to
maturity
[§ 1030.5(b)&(c)]

§1030.6 Periodic statement disclosures
Requirements for
existing periodic
statement
disclosures [§
1030.6]
§1030.8 Advertising
Requirement for
Advertisements
and indoor signs
[§ 1030.8(b), (c),
(d),(e)(2) & §
1030.11(a), (b), &
(c)]

§1030.9 Enforcement and record retention

Page 8 of 11

30-day Federal Register and OMB Review

Information
Collection
Requirement

No. of
Respondents

Record retention
[§ 1030.9(c)]

6,213

n/a

0.00

0.00

0.00

$0.00

Total Burden for
All Regulated
Entities

6,213

43,891,720

0.0167

731,529

$26.00

$19,070,045

129

34,380,496

0.0167

573,008

$26.00

$14,937,615

Total Burden for
CFPB Regulated
Entities

Annual
Responses

Average
Response
Time (hrs.)

Annual
Burden
Hours

Hourly
Rate

Labor Costs

CFPB estimates that there are 6,213 institutions subject to Regulation DD of which
129 are under CFPB’s supervisory authority.
The CFPB attributes to itself burden associated with the entities it supervises, and
this regulation only applies to non-credit union depository institutions. While not many
institutions fall under CFPB enforcement authority, the number of accounts owned by these
institutions represents a significant portion of the total market, and is represented here. The
CFPB obtained these estimates using a variety of industry and market sources, both public
and proprietary.
While there are more disclosures required under Regulation DD, the account
opening disclosure is the only one that is most likely to happen while the consumer is
physically present at a bank, and is therefore the only one that requires significant,
measureable time to process. Providing account disclosures upon request also likely
requires human interaction; however, the Bureau believes that such requests typically
happen as a part an ordinary business interaction between a customer and a bank, and
therefore the marginal hourly burden imposed by such requests is minimal.
Other disclosures, including notices of change of terms, and notices prior to
maturity for time accounts, are automatically generated by systems already owned by the
respondents and therefore does not require human time. Further, as pointed out previously,
Regulation DD does not require periodic account statements; rather, it imposes additional
requirements on statements that already exist. CFPB estimates that the incremental burden
of these requirements imposed on respondents is minimal. Likewise, regarding the
recordkeeping requirement, CFPB believes that institutions incur no additional burden for
maintaining sample disclosures for each type of account offered to consumers since these
artifacts are generally created and stored in digital form (an acceptable method of
recordkeeping).
Associated Labor Cost: $14,937,615
The CFPB calculated labor costs by estimating the burden hours associated with
Page 9 of 11

30-day Federal Register and OMB Review

complying with the required account opening disclosures described in Exhibit 1. According
to the BLS, financial clerks, who would be helping consumers opening an account at a
bank, have a median fully-loaded wage rate of $26.07.hour. 3
13. Estimated Total Annual Cost Burden to Respondents or Recordkeepers
Additional Materials Cost: $1,347,218
Description of costs

Unit Cost

Notices/Statements

Total Cost

Printing and mailing change of
terms notices (1030.5(a))

$ 0.30

4,545,809

$1,345,560

Printing and mailing of notices
before maturity for time deposits
(1030.5(b & c))

$ 0.30

5,603

$ 1,658

CFPB materials cost:

$1,347,218

The above calculations take into account both the Bureau’s share of the total notices
and statements sent out within a year, as well as the amount of these notices that are sent
electronically, and therefore have no printing and mailing cost. The materials costs were
based on bulk mailing rates from the USPS as well as bulk costs of paper and envelopes.
14. Estimated Cost to the Federal Government
As the CFPB does not collect any information, there are no additional costs to the
Federal Government.
15. Program Changes or Adjustments
Exhibit 3: Summary of Burden Changes
Total
Respondents
Total Requested
Current OMB
Inventory
Difference (+/-)
Program Change

Annual
Responses

Burden Hours

Cost Burden
(O & M)

129

34,380,496

573,008

$1,347,218

142

378,960

23,000

$0

-7

34,001,536

550,008

$1,347,218

0

0

0

$0

3

This is a fully-loaded wage rate, derived from both hourly wages and the percent of total compensation
wages make up. Hourly rate labor costs are the median hourly wages from the Bureau of Labor and Statistics
(BLS) for affected occupational groups. Occupational groups for the PRA burden of this burden are defined
as financial clerks (http://www.bls.gov/ooh/office-and-administrative-support/financial-clerks.htm#tab-1),
whose median pay was $17.44 as of 2014, the latest available rate at the time of publishing. According to the
BLS, wages accounted for 66.9% of the total cost of compensation for credit intermediation and related
activities (http://www.bls.gov/news.release/archives/ecec_09102014.pdf), so the fully-loaded wage is
$17.44/.669=$26.07.

Page 10 of 11

30-day Federal Register and OMB Review

Discretionary

0

0

0

$0

New Statute

0

0

0

$0

Violation

0

0

0

$0

-7

34,001,536

550,008

$1,347,218

Adjustment

The increases in burden and costs are the result of an improved methodology of
calculating these measures as opposed to any regulation change, and therefore the new
requests should be seen as a more accurate representation of the true costs and burdens of
Regulation DD.
16. Plans for Tabulation, Statistical Analysis, and Publication
There are no plans to provide any publications based on the information collection
of this regulation.
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,
as well as in the Code of Federal Regulations (CFR). There are no required forms or other
documents upon which display of the control number and expiration date would be
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.

SUPPORTING STATEMENT PART B – COLLECTIONS USING STATISTICAL
METHODS
Not applicable. The information collection requirements contained in Regulation DD do
not involve the use of statistical methods.
###

Page 11 of 11