As used in this part:

1. (a) Simple and easy to understand means:

   1. (1) A layered format as described in § 642.3 of this part;
   2. (2) Plain language designed to be understood by ordinary consumers; and

   3. (3) Use of clear and concise sentences, paragraphs, and sections.

      1. (i) Examples. For purposes of this part, examples of factors to be considered in determining whether a statement is in plain language and uses clear and concise sentences, paragraphs, and sections include:

         1. (A) Use of short explanatory sentences;
         2. (B) Use of definite, concrete, everyday words;
         3. (C) Use of active voice;
         4. (D) Avoidance of multiple negatives;
         5. (E) Avoidance of legal and technical business terminology;
         6. (F) Avoidance of explanations that are imprecise and reasonably subject to different interpretations; and
         7. (G) Use of language that is not misleading.
      2. (ii) [Reserved]
2. (b) Motor vehicle dealer means any person excluded from Consumer Financial Protection Bureau jurisdiction as described in 12 U.S.C. 5519.
3. (c) Principal promotional document means the document designed to be seen first by the consumer, such as the cover letter.

[70 FR 5032, Jan. 31, 2005, as amended at 86 FR 50850, Sept. 13, 2021]