12 U.S.C. § 5532 — Disclosures
submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 518 words · no verdicts yet
This section authorizes Bureau disclosure rules and optional model forms for consumer financial products and services. It also addresses consumer testing, safe harbors, trial programs, and combined mortgage disclosures.
(a) In general. The Bureau* may issue rules ensuring that a consumer* financial product or service’s features, both at first and throughout the product or service’s term, are fully, accurately, and effectively disclosed in a way consumers can understand in light of the facts and circumstances, including the product’s costs, benefits, and risks. (b) Model disclosures. (1) A final disclosure rule may include an optional model form for a covered person* to use. (2) The model form must clearly and conspicuously: (A) use plain language consumers can understand; (B) use a clear format and design, such as easily readable type; and (C) briefly explain the information that must be communicated. (3) Consumer testing must validate every model form. (c) Rulemaking basis. The Bureau must consider available evidence about consumer awareness, understanding, and responses to disclosures or communications about product or service risks, costs, and benefits. (d) Safe harbor. A covered person* using a model form included with a rule complies with this section’s disclosure requirements for that model form. (e) Trial disclosure programs. (1) The Bureau may allow a covered person to run a time- and scope-limited trial program under specified standards and procedures to test disclosures designed to improve a model form under subsection (b)(1), or another model form implementing an enumerated statute. (2) The standards and procedures must encourage such trials. For administering this subsection, the Bureau may set a limited period when a participant is considered compliant with, or exempt from, a rule or enumerated consumer-law requirement. (3) Bureau rules must provide for public disclosure of trial programs, but disclosure may be limited as necessary to encourage effective trials. (f) Combined mortgage-loan disclosure. Within one year after the designated transfer date*, the Bureau must propose for public comment rules and model disclosures combining Truth in Lending Act disclosures and sections 2603 and 2604 disclosures into one integrated disclosure for covered mortgage transactions, unless the Bureau decides a Board of Governors and Housing and Urban Development Secretary proposal serves the same purpose.
The Bureau* may 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.
Any final rule prescribed by the Bureau under this section requiring disclosures may include a model form that may be used at the option of the covered person* for provision of the required disclosures.
A model form issued pursuant to paragraph (1) shall contain a clear and conspicuous disclosure that, at a minimum—
uses plain language comprehensible to consumers;
contains a clear format and design, such as an easily readable type font; and
succinctly explains the information that must be communicated to the consumer*.
Any model form issued pursuant to this subsection shall be validated through consumer testing.
In prescribing rules under this section, the Bureau shall consider available evidence about consumer awareness, understanding of, and responses to disclosures or communications about the risks, costs, and benefits of consumer financial products or services.
Any covered person* that uses a model form included with a rule issued under this section shall be deemed to be in compliance with the disclosure requirements of this section with respect to such model form.
The Bureau may permit a covered person to conduct a trial program that is limited in time and scope, subject to specified standards and procedures, for the purpose of providing trial disclosures to consumers that are designed to improve upon any model form issued pursuant to subsection (b)(1), or any other model form issued to implement an enumerated statute, as applicable.
The standards and procedures issued by the Bureau shall be designed to encourage covered persons to conduct trial disclosure programs. For the purposes of administering this subsection, the Bureau may establish a limited period during which a covered person conducting a trial disclosure program shall be deemed to be in compliance with, or may be exempted from, a requirement of a rule or an enumerated consumer law.
The rules of the Bureau shall provide for public disclosure of trial disclosure programs, which public disclosure may be limited, to the extent necessary to encourage covered persons to conduct effective trials.
Not later than 1 year after the designated transfer date*, the Bureau shall propose for public comment rules and model disclosures that combine the disclosures required under the Truth in Lending Act [15 U.S.C. 1601 et seq.] and sections 2603 and 2604 of this title, into a single, integrated disclosure for mortgage loan transactions covered by those laws, unless the Bureau determines that any proposal issued by the Board of Governors and the Secretary of Housing and Urban Development carries out the same purpose.
Source credit: (Pub. L. 111–203, title X, § 1032, July 21, 2010, 124 Stat. 2006.)
- 2010Enacted · Pub. L. 111-203 · 124 Stat. 2006
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.
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