[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5188 Introduced in House (IH)]

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.

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

SECTION 1. FINDINGS.

    Congress finds that:
            (1) Depository institutions and credit unions have an 
        obligation to provide consumers with policy and fee information 
        in a concise and easy to understand format.
            (2) Because the length of disclosure forms ranges from 21 
        to 153 pages for depository institutions and 9 to 53 pages for 
        credit unions, consumers have a difficult time understanding 
        how much they are paying for their checking accounts and other 
        financial products. Consumers should be able to compare account 
        terms and conditions among depository institutions and credit 
        unions.
            (3) A simplified, standardized disclosure form would reduce 
        consumer confusion and make it easier for institutions to 
        compete on price and quality of financial products.

SEC. 2. MODEL DISCLOSURES FOR DEPOSITORY INSTITUTIONS AND CREDIT 
              UNIONS.

    Section 1032 of the Consumer Financial Protection Act of 2010 (12 
U.S.C. 5532) is amended by adding at the end the following new 
subsection:
    ``(g) Model Disclosures for Depository Institutions and Credit 
Unions.--
            ``(1) In general.--The Bureau, by rule, shall develop a 
        model form for a disclosure notice that shall be used by 
        depository institutions and credit unions for provision of 
        disclosures to be given to a consumer before that consumer 
        opens a checking account.
            ``(2) Stakeholder input.--Prior to issuing a rule pursuant 
        to paragraph (1), the Bureau shall solicit input from 
        representatives of depository institutions and credit unions, 
        non-profit consumer protection entities, and organizations that 
        represent the interests of depository institutions and credit 
        unions.
            ``(3) Requirements.--A model form developed pursuant to 
        paragraph (1) shall--
                    ``(A) comply with the format requirements of 
                subsection (b)(2);
                    ``(B) when practicable, be made available on the 
                website of the depository institution or credit union; 
                and
                    ``(C) include disclosures relating to--
                            ``(i) opening a checking account and use of 
                        such account;
                            ``(ii) consequences of overdraft on such 
                        account, including any fees related to 
                        overdraft;
                            ``(iii) processing policies of the 
                        depository institution or credit union; and
                            ``(iv) procedures for resolving a dispute 
                        between the consumer and the depository 
                        institution or credit union.
            ``(4) Exemption for certain banks.--Any depository 
        institution or credit union with total assets of less than 
        $2,000,000,000 shall be exempt from the requirements of this 
        subsection.''.
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