Clarity in Consumer Disclosures Act of 2021
Bill: H.R.6067 | Sponsor: Rep. Dean, Madeleine (D-PA)
Policy area: Finance and Financial Sector

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.

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clarity in Consumer Disclosures Act 
of 2021''.

SEC. 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.) is amended by adding after section 604 the 
        following new section:
``Sec. 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.
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