Clarity in Consumer Disclosures Act of 2021

To direct the Bureau of Consumer Financial Protection to issue model forms and model language for certain Fair Credit Reporting Act requirements, and for other purposes. 1. Short title This Act may be cited as the Clarity in Consumer Disclosures Act of 2021 2. Model forms and model language for certain Fair Credit Reporting Act requirements (a) Model forms and model language (1) In general The Fair Credit Reporting Act ( 15 U.S.C. 1601 et seq. 604A. Model forms and model language (a) In general Not later than one year after the date of the enactment of this section, the Director of the Bureau shall develop and issue— (1) model language for a certification that may be used by a person to comply with section 604(b)(1)(A); (2) model forms of disclosure, authorization, notice, and consent that may be used by a consumer or other person to comply with section 604(b)(2); (3) a model consent form and model language for inclusion in any forms that may be used by a consumer to provide the consent required under section 604(g)(1)(B)(ii); (4) a model form and model language for inclusion in any forms that may be used to provide a consumer with the disclosure and statement required under section 606(a)(1); (5) model language for a certification that may be used by a person to comply with section 606(a)(2); and (6) model language of certification that may be used by a person seeking to procure a consumer report under section 604(f)(2) or 607(a). (b) Format The Director— (1) shall ensure that the model forms and model language described in subsection (a) are in plain language comprehensible to an average reader and do not include citations to law; (2) to the extent practicable, shall develop a single, integrated model form for use to comply with the requirements of section 604, 606, or 607; (3) shall ensure that such model forms and model language are comprehensible and can be easily adapted based on specific consumer reports; and (4) with respect to model language for a certification described in paragraph (1) or (6) of subsection (a), shall allow the user of a consumer report to include such model language in other documents to prospectively certify to a consumer reporting agency user compliance with the requirements of section 604(b)(1)(A) or 606(a)(2), as applicable. (c) Rulemaking In developing the model forms under subsection (a), the Director shall publish a notice in the Federal Register seeking written comments from the public. (d) Safe harbor Any person or consumer reporting agency that elects to provide a model form developed under subsection (a) that accurately reflects the practices of such person or such agency shall be deemed to be in compliance with the requirements to which the model form corresponds. (e) Specific components In developing the model forms under subsection (a), the Director— (1) shall review State laws regulating consumer reports; (2) shall develop such model forms to satisfy any requirements imposed by State law that are substantially similar to those described in subsection (a); (3) with respect any disclosures that applicable law requires to consist solely of the disclosure, may deem that such model form satisfies such disclosure; and (4) with respect to a model form that includes a disclosure described in paragraph (3), may require that such model form consist solely of the disclosure along with any other information the Director determines necessary to properly complete the form. . (2) Clerical amendment The table of sections for Fair Credit Reporting Act is amended by adding after the item relating to section 604 the following new item: 604A. Model forms and model language. . (b) Report to Congress Not later than 6 months after the issuance of model forms and model language under section 604A of the Fair Credit Reporting Act (as added by subsection (a) of this section), the Director of the Bureau of Consumer Financial Protection shall submit to Congress a report that includes— (1) the methodology used by the Director to create such model forms and model language; and (2) an analysis of the use of such model forms and model language.

Summary: Clarity in Consumer Disclosures Act of 2021 This bill requires the Consumer Financial Protection Bureau to issue model forms and model language for use by consumer reporting agencies in satisfying consumer disclosure, authorization, certification, notice, and consent requirements. The model forms and model language must use plain language that is comprehensible to an average reader.