[BILLING CODE: 4810-033-P]

DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Information Collection Renewal; Comment
Request; Debt Cancellation Contracts and Debt Suspension Agreements
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork and respondent
burden, invites comment on a continuing information collection, as required by the Paperwork
Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may
not conduct or sponsor, and the respondent is not required to respond to, an information
collection unless it displays a currently valid Office of Management and Budget (OMB) control
number. The OCC is soliciting comment concerning the renewal of its information collection
titled, “Debt Cancellation Contracts and Debt Suspension Agreements.”
DATES: Comments must be received by [INSERT DATE 60 DAYS AFTER DATE OF
PUBLICATION IN THE FEDERAL REGISTER].
ADDRESSES: Commenters are encouraged to submit comments by e-mail, if possible. You
may submit comments by any of the following methods:
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E-mail: prainfo@occ.treas.gov.

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Mail: Chief Counsel’s Office, Attention: Comment Processing, Office of the

Comptroller of the Currency, Attention: 1557-0224, 400 7th Street, SW, Suite 3E-218,
Washington, DC 20219.
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Hand Delivery/Courier: 400 7th Street, SW, Suite 3E-218, Washington, DC

20219.
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Fax: (571) 293-4835.

Instructions: You must include “OCC” as the agency name and “1557-0224” in
your comment. In general, the OCC will publish comments on www.reginfo.gov without
change, including any business or personal information provided, such as name and
address information, e-mail addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public record and subject to
public disclosure. Do not include any information in your comment or supporting
materials that you consider confidential or inappropriate for public disclosure.
Following the close of this notice’s 60-day comment period, the OCC will publish
a second notice with a 30-day comment period. You may review comments and other
related materials that pertain to this information collection beginning on the date of
publication of the second notice for this collection by the method set forth in the next
bullet.
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Viewing Comments Electronically: Go to www.reginfo.gov. Hover over the
“Information Collection Review” tab and click on “Information Collection Review”
from the drop-down menu. From the “Currently under Review” drop-down menu,
select “Department of Treasury” and then click “submit.” This information collection
can be located by searching OMB control number “1557-0224” or “Debt Cancellation
Contracts and Debt Suspension Agreements.” Upon finding the appropriate
information collection, click on the related “ICR Reference Number.” On the next
screen, select “View Supporting Statement and Other Documents” and then click on
the link to any comment listed at the bottom of the screen.

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For assistance in navigating www.reginfo.gov, please contact the Regulatory
Information Service Center at (202) 482-7340.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490, Chief Counsel’s Office, Office of the Comptroller of the Currency,

400 7th Street, SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a
speech disability, please dial 7-1-1 to access telecommunications relay services.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.),
Federal agencies must obtain approval from the OMB for each collection of information
that they conduct or sponsor. “Collection of information” is defined in 44 U.S.C. 3502(3)
and 5 CFR 1320.3(c) to include agency requests or requirements that members of the
public submit reports, keep records, or provide information to a third party. Section
3506(c)(2)(A) of title 44 generally requires Federal agencies to provide a 60-day notice in
the Federal Register concerning each proposed collection of information, including each
proposed extension of an existing collection of information, before submitting the
collection to OMB for approval. To comply with this requirement, the OCC is publishing
notice of the renewal/revision of this collection.
Title: Debt Cancellation Contracts and Debt Suspension Agreements.
OMB Control No.: 1557-0224.
Type of Review: Regular.
Description: Twelve U.S.C. 24(Seventh) authorizes a national bank (bank) to enter into
Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements (DSAs). Twelve CFR
part 37 requires banks to disclose information about a DCC or DSA using either a short or long
form disclosure. The short form disclosure usually is made orally and issued at the time a bank
first solicits the purchase of a contract. The long form disclosure usually is made in writing and
issued before the customer completes the purchase of the contract. There are special rules for
transactions by telephone, solicitations using written mail inserts or “take one” applications, and
electronic transactions. Part 37 provides two model forms of disclosure for satisfying the
requirements of the rule. Use of the forms is not mandatory, and the regulation permits a bank
to adjust the form and wording of its disclosures so long as it meets the applicable requirements.
The requirements of part 37 enhance consumer protections for customers who purchase DCCs

and DSAs from banks and ensure that banks offer these products in a safe and sound manner by
requiring them to effectively manage their risk exposure.
§ 37.6 Disclosures.
Section 37.6 requires the disclosures to be readily understandable and meaningful. The
content of the short and long form may vary, depending on whether a bank elects to provide a
summary of the conditions and exclusions in the long form disclosures or refers the customer to
the pertinent paragraphs in the contract. For example, the short form disclosure requires a bank
to instruct the customer to read carefully both the long form disclosures and the contract for a
full explanation of the contract terms, while the long form gives a bank the option of either:
(i) summarizing the limitations; or (ii) advising the customer that a complete explanation of the
eligibility requirements, conditions, and exclusions is available in the contract and identifying
the paragraphs where the customer may find that information.
Section 37.6 and appendices A and B to part 37 require a bank to provide the following
disclosures (summarized below), as appropriate:
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Anti-tying (short and long form) —A bank must inform the customer that purchase
of the product is optional and that neither the bank’s decision whether to approve
the loan nor the terms and conditions of the loan are conditioned on the purchase of
a DCC or DSA.

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Explanation of debt suspension agreement (long form) —A bank must disclose that
if a customer activates the agreement, the customer's duty to pay the loan principal
and interest is only suspended and the customer must fully repay the loan after the
period of suspension has expired.

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Amount of the fee (long form) —A bank must make disclosures regarding the
amount of the fee. The content of the disclosure depends on whether the credit is
open-end or closed-end. In the case of closed-end credit, the bank must disclose
the total fee. In the case of open-end credit, the bank must either: (i) disclose that

the periodic fee is based on the account balance multiplied by a unit cost and
provide the unit cost; or (ii) disclose the formula used to compute the fee.
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Lump sum payment of fee (short and long form) —A bank must disclose, where
appropriate, that a customer has the option to pay the fee in a single payment or in
periodic payments and that adding the fee to the amount borrowed will increase the
cost of the contract. This disclosure is not appropriate in the case of a DCC or
DSA provided in connection with a home mortgage loan where the option to pay
the fee in a single payment is not available.

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Lump sum payment of fee with no refund (short and long form) —A bank must
disclose that the customer has the option to choose a contract with or without a
refund provision. This disclosure must also state that the prices of refund and norefund products are likely to differ.

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Refund of fee paid in lump sum (short and long form) —If a bank permits a
customer to pay the fee in a single payment and add the fee to the amount
borrowed, the bank must disclose its cancellation policy. The disclosure informs
the customer of the bank’s refund policy, as applicable, i.e., that the DCC or DSA
may be: (i) cancelled at any time for a refund; (ii) cancelled within a specified
number of days for a full refund; or (iii) cancelled at any time with no refund.

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Whether use of a card or credit line is restricted (long form) —A bank must inform
a customer if the customer's activation of the contract would prohibit the customer
from incurring additional charges on the credit card or using the credit line.

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Termination of a DCC or DSA (long form) — If termination is permitted during
the life of the loan, a bank must include an explanation of the circumstances under
which a customer or the bank may terminate the contract.

•

Additional disclosures (short form) —A bank must inform customers that it will
provide additional information before the customer is required to pay for the
product.

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Eligibility requirements, conditions, and exclusions (short and long form) —A
bank must describe any material limitations relating to the DCC or DSA.

§ 37.7 Affirmative election to purchase and acknowledgement of receipt of disclosures required.
Section 37.7 requires a bank to obtain a customer's written affirmative election to
purchase a contract and written acknowledgment of receipt of the disclosures required by
§ 37.6. The section further provides that the election and acknowledgment must be
conspicuous, simple, direct, readily understandable, and designed to call attention to their
significance.
Pursuant to § 37.7(b), if the sale of the contract occurs by telephone, the customer’s
affirmative election to purchase and acknowledgment of receipt of the required short form may
be made orally, provided the bank: (i) maintains sufficient documentation to show that the
customer received the short form disclosures and then affirmatively elected to purchase the
contract; (ii) mails the affirmative written election and written acknowledgment, together with
the long form disclosures required by § 37.6, to the customer within 3 business days after the
telephone solicitation and maintains sufficient documentation to show it made reasonable efforts
to obtain the documents from the customer; and (iii) permits the customer to cancel the purchase
of the contract without penalty within 30 days after the bank has mailed the long form
disclosures to the customer.
Pursuant to § 37.7(c), if the DCC or DSA is solicited through written materials such as
mail inserts or "take one" applications and the bank provides only the short form disclosures in
the written materials, then the bank shall mail the acknowledgment, together with the long form
disclosures, to the customer. The bank may not obligate the customer to pay for the contract
until after the bank has received the customer's written acknowledgment of receipt of

disclosures, unless the bank takes certain steps, maintains certain documentation, and permits
the customer to cancel the purchase within 30 days after mailing the long form disclosures to the
customer. Section 37.7(d) permits the customer’s affirmative election and acknowledgment to
be made electronically.
Affected Public: Businesses or other for-profit.
Estimated Frequency of Response: On occasion.
Estimated Number of Respondents: 1,044.
Estimated Total Annual Burden: 25,056 hours.
Comments submitted in response to this notice will be summarized and included in the
request for OMB approval. All comments will become a matter of public record. Comments
are invited on:
(a) Whether the collection of information is necessary for the proper performance of the
functions of the OCC, including whether the information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the collection of information;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected;
(d) Ways to minimize the burden of the collection on respondents, including through the
use of automated collection techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation, maintenance, and
purchase of services to provide information.
Patrick T. Tierney,
Assistant Director,
Office of the Comptroller of the Currency.
[FR Doc. 2024-14107 Filed: 6/26/2024 8:45 am; Publication Date: 6/27/2024]