FRDD_20180522_omb

Supporting Statement for the
Disclosure Requirements Associated with CFPB’s Regulation DD
(FR DD; OMB No. 7100-0271)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend for three years,
without revision, the Disclosure Requirements Associated with CFPB’s Regulation DD (FR DD;
OMB No. 7100-0271). The Truth in Savings Act (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 certain 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. Although the Consumer Financial Protection Bureau
(CFPB) is now responsible for issuing TISA1 regulations, the Board continues to be responsible
under the Paperwork Reduction Act (PRA) for renewing every three years the information
collections required by institutions the Board supervises.
The Board accounts for the paperwork burden associated with the regulation only for
Board-supervised institutions.2 The respondent burden for the 936 Board-supervised entities is
estimated to be 140,400 hours.3
Background and Justification
On July 21, 2011, rulemaking authority for TISA was transferred from the Board to the
CFPB under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (DoddFrank Act). In December 2011, the CFPB published an interim final rule establishing its own
Regulation DD to implement TISA at 12 CFR Part 1030 that substantially duplicated the Board’s
Regulation DD. The CFPB finalized its interim final rule in April 2016. The Board repealed its
version of Regulation DD (12 CFR Part 230) effective June 30, 2014.4

1

TISA was enacted in 1991 and is codified at 12 U.S.C. 4301 et seq. Regulation DD is located at 12 CFR Part 1030.
Other federal agencies account for the paperwork burden that Regulation DD imposes on the institutions for which
they have supervisory authority.
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The 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).
4
See 79 FR 30711 (May 29, 2014).
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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.
Disclosure Requirements
Section 1030.4 – Account disclosures
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 APY that will be paid on an account, and other
key terms.
Section 1030.5(a) – Change in terms notice
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.
Sections 1030.5(b) and (c) – Notices prior to maturity
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.
Section 1030.6 – Periodic statement disclosure
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.
Section 1030.8 – Advertising
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.
Section 1030.11 – Additional disclosure requirements for overdraft services
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
FR 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 FR DD; disclosures pertaining to a particular transaction or consumer account
are not publicly available. Disclosures of an institution’s account terms that appear in
advertisements are available to the public.

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Legal Status
Section 269 of TISA specifically authorizes the CFPB “to prescribe regulations” to
carry out the purposes and provisions of the Act, as well as to adopt model forms and clauses
for common disclosures to facilitate compliance (12 U.S.C. 4308). FR DD implements this
statutory provision (12 CFR Part 1030). The Board’s imposition of the disclosure
requirements on Board-supervised institutions is authorized by section 270 of TISA (12 U.S.C.
4309) and the provisions of Regulation DD (12 CFR 1030.1(a) and 1030.2(j)). An
institution’s disclosure obligations under Regulation DD are mandatory. The Board does not
collect any information; therefore, no issue of confidentiality arises.
Consultation Outside the Agency
On November 22, 2017, the Board published an initial notice in the Federal Register
(82 FR 55608) requesting public comment for 60 days on the proposal to extend, without
revision, the FR DD. The comment period for this notice expired on January 22, 2018. The
Board did not receive any comments. On February 15, 2018, the Board published a final notice
in the Federal Register (83 FR 6849) and the information collection will be extended as
proposed.
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 140,400 hours for the 936 institutions
supervised by the Board. This estimated burden arises exclusively from the disclosures
required under the regulation and is shown in the table below. These disclosure requirements
represent 1.3 percent of total Federal Reserve System annual paperwork burden.

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Number of
respondents5

FR DD
Disclosure
Section 1030.4
Account disclosures
Section 1030.5(a)
Change in terms notice
Sections 1030.5(b) and (c)
Notices prior to maturity
Sections 1030.6 and 1030.11
Periodic statement disclosure and
additional disclosure requirements
for overdraft services
Sections 1030.8 and 1030.11
Advertising and additional
disclosure requirements for
overdraft services

Estimated
Estimated
Annual
average hours annual burden
frequency
per response
hours

936

12

1

11,232

936

12

1.5

16,848

936

12

1.5

16,848

936

12

8

89,856

936

12

0.5

Total

5,616
140,400

The total annual cost to the public is estimated to be $7,869,420.6
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 Board does not collect any information, the cost to the Federal Reserve
System is negligible.

5

Of these respondents, 606 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/document/support--table-size-standards.
6
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 $18, 45% Financial Managers at
$69, 15% Lawyers at $68, and 10% Chief Executives at $94). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2017, published March 30, 2018, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

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