Consumer protection superagency created
Make financial disclosure understandable
If you've ever read a credit card disclosure, you know that it's not written to be clearly understood by a layman. Because most of us don't have teams of lawyers to read and interpret the complex legal documents that confront us when we try to access credit, the new law tasks the consumer protection bureau with policing financial disclosure to make sure it's clear, comprehensive and accurate.
To do this, the consumer protection bureau will develop models for financial companies to follow, something like the standardized nutritional labels on food but for financial products instead. The resulting disclosures must meet the following requirements, according to the act:
- Use plain language.
- Have a clear format and design, such as an easily readable font.
- Be as succinct as possible.
The new models will be subjected to consumer testing to make sure they actually meet these requirements.