Definition
Requires disclosures for consumer financial products or services to be clear, easily understandable, and provided in a format that can be retained by the consumer.
Excerpt
Required disclosures must be clear and readily understandable, in writing, and in a form the consumer may keep. The required disclosures may be provided to the consumer in electronic form, if the consumer affirmatively consents after receiving a notice that complies with the ESign Act (12 CFR 1005.4(a)(1)).
Disclosures may be made in a language other than English, if the disclosures are made available in English upon the consumer’s request (12 CFR 1005.4(a)(2)).
A financial institution has the option of disclosing additional information and combining disclosures required by other laws (for example, TILA disclosures) with Regulation E disclosures (12 CFR 1005.4(b)).
Related cases
TransUnion deceived consumers by falsely marketing credit scores and credit-related products, enrolling consumers without consent, lacking cancellation mechanisms, and providing misleading information about the products' costs, purpose, and protection of personal information.
Health Formulas was held liable for fraudulent "free trials" luring consumers into enrolling for a membership program.