I 

113TH CONGRESS 

2D SESSION H. R. 5188 

To amend the Consumer Financial Protection Act of 2010 to require the 

Bureau of Consumer Financial Protection to develop a model form for 

a disclosure notice that shall be used by depository institutions and 

credit unions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2014 

Mr. CARNEY introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To amend the Consumer Financial Protection Act of 2010 

to require the Bureau of Consumer Financial Protection 

to develop a model form for a disclosure notice that 

shall be used by depository institutions and credit unions, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FINDINGS. 

4 Congress finds that: 

5 (1) Depository institutions and credit unions 

6 have an obligation to provide consumers with policy 


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1 and fee information in a concise and easy to under2 stand format. 

3 (2) Because the length of disclosure forms 

4 ranges from 21 to 153 pages for depository institu5 tions and 9 to 53 pages for credit unions, consumers 

6 have a difficult time understanding how much they 

7 are paying for their checking accounts and other fi8 nancial products. Consumers should be able to com9 pare account terms and conditions among depository 

10 institutions and credit unions. 

11 (3) A simplified, standardized disclosure form 

12 would reduce consumer confusion and make it easier 

13 for institutions to compete on price and quality of fi14 nancial products. 

15 SEC. 2. MODEL DISCLOSURES FOR DEPOSITORY INSTITU16 TIONS AND CREDIT UNIONS. 

17 Section 1032 of the Consumer Financial Protection 

18 Act of 2010 (12 U.S.C. 5532) is amended by adding at 

19 the end the following new subsection: 

20 ‘‘(g) MODEL DISCLOSURES FOR DEPOSITORY INSTI21 TUTIONS AND CREDIT UNIONS.— 

22 ‘‘(1) IN GENERAL.—The Bureau, by rule, shall 

23 develop a model form for a disclosure notice that 

24 shall be used by depository institutions and credit 

25 unions for provision of disclosures to be given to a 


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1 consumer before that consumer opens a checking ac2 count. 

3 ‘‘(2) STAKEHOLDER INPUT.—Prior to issuing a 

4 rule pursuant to paragraph (1), the Bureau shall so5 licit input from representatives of depository institu6 tions and credit unions, non-profit consumer protec7 tion entities, and organizations that represent the 

8 interests of depository institutions and credit unions. 

9 ‘‘(3) REQUIREMENTS.—A model form developed 

10 pursuant to paragraph (1) shall— 

11 ‘‘(A) comply with the format requirements 

12 of subsection (b)(2); 

13 ‘‘(B) when practicable, be made available 

14 on the website of the depository institution or 

15 credit union; and 

16 ‘‘(C) include disclosures relating to— 

17 ‘‘(i) opening a checking account and 

18 use of such account; 

19 ‘‘(ii) consequences of overdraft on 

20 such account, including any fees related to 

21 overdraft; 

22 ‘‘(iii) processing policies of the deposi23 tory institution or credit union; and 


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1 ‘‘(iv) procedures for resolving a dis2 pute between the consumer and the deposi3 tory institution or credit union. 

4 ‘‘(4) EXEMPTION FOR CERTAIN BANKS.—Any 

5 depository institution or credit union with total as6 sets of less than $2,000,000,000 shall be exempt 

7 from the requirements of this subsection.’’. 

Æ 


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