16 C.F.R. § 642.2

Current through October 31, 2024
Section 642.2 - Definitions

As used in this part:

(a)Simple and easy to understand means:
(1) A layered format as described in § 642.3 of this part;
(2) Plain language designed to be understood by ordinary consumers; and
(3) Use of clear and concise sentences, paragraphs, and sections.
(i)Examples. For purposes of this part, examples of factors to be considered in determining whether a statement is in plain language and uses clear and concise sentences, paragraphs, and sections include:
(A) Use of short explanatory sentences;
(B) Use of definite, concrete, everyday words;
(C) Use of active voice;
(D) Avoidance of multiple negatives;
(E) Avoidance of legal and technical business terminology;
(F) Avoidance of explanations that are imprecise and reasonably subject to different interpretations; and
(G) Use of language that is not misleading.
(ii) [Reserved]
(b)Motor vehicle dealer means any person excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519 .
(c)Principal promotional document means the document designed to be seen first by the consumer, such as the cover letter.

16 C.F.R. §642.2

70 FR 5032 , Jan. 31, 2005, as amended at 86 FR 50850 , Sept. 13, 2021
86 FR 50848 , 10/13/2021