Plain-language rules for consumer finance disclosures
Consumer finance rules require clear, conspicuous disclosures. They set no reading grade and name no formula. This page shows what the rules say, with links.
General information, not legal advice. Laws change and differ by place. Check the official source linked in each row and ask your own lawyer or compliance team. Sources last checked November 10, 2026.
What the rules say
Federal consumer finance rules ask for clear, conspicuous disclosures that consumers can understand. The Truth in Lending rules (Regulation Z) require closed-end credit disclosures to be made clearly and conspicuously in writing. They set no reading grade and name no formula.
The Consumer Financial Protection Bureau also writes model disclosure forms. The law behind them asks for plain language and a clear, readable format, again without a number.
So for these documents, a readability score is a writing aid, not a legal test.
Requirements and sources
| Requirement | Formula or metric | Threshold | Source |
|---|---|---|---|
| CFPB model disclosure forms | None named: “plain language comprehensible to consumers” | No grade set | 12 U.S.C. 5532(b) |
| Truth in Lending (Regulation Z) disclosures | None named: “clearly and conspicuously in writing” | No grade set | 12 CFR 1026.17 |
Check your document
Open the free checker with the General public (grade 7 to 9) target already set. Scores are estimates: the laws below may set their own counting rules, so the calculator is a first check, not the official score.
Check a document (General public (grade 7 to 9))
How to make an evidence sheet for this document
- Open the calculator with the right target. Use the button above. It opens the free checker with the target reader set for this kind of document.
- Add your document. Paste the text, or open a Word, PDF or text file. Everything is scored in your browser and nothing is uploaded.
- Fix the hardest sentences. Sentences are marked easy, borderline or hard. Rewrite the hard ones, then check the scores again.
- Print the evidence sheet. Choose Evidence sheet, add the document name, and print or save it as a PDF. It records the date, the six scores, the target and a SHA-256 fingerprint of the text.
- File it with your records. Keep the sheet with the document version you scored. If the text changes, the fingerprint will not match, so score the new version too.
The sheet records a measurement on the date shown; it does not certify compliance with any law, regulation or standard.
Frequently asked questions
Do CFPB rules set a reading level for disclosures?
No rule we checked sets a grade or names a formula. Regulation Z asks for disclosures that are clear and conspicuous.
What does clear and conspicuous mean?
Regulation Z section 1026.17 does not define it there. In general it means a reasonable consumer can notice and understand the disclosure.
Should I still check readability?
It can help. A lower grade and shorter sentences usually make a disclosure easier to follow, even though no score is required.
Does a good score make a disclosure compliant?
No. Content, format, timing and other rules decide compliance. An evidence sheet records a measurement only.
Which target should I use?
Many teams aim at a general-public level. Our General public preset targets a Flesch-Kincaid grade of about 7 to 9.