---
kind: "section"
citation: "16 C.F.R. § 642.2"
title: "16"
number: "642.2"
heading: "Definitions."
url: "https://uscodex.org/cfr/16/642.2"
---

# §642.2. Definitions.


As used in this part:

- (a) **Simple and easy to understand—** means:
  - (1) A layered format as described in [§ 642.3](/cfr/16/642.3.md) of this part;
  - (2) Plain language designed to be understood by ordinary consumers; and
  - (3) **Use of clear and concise sentences, paragraphs, and sections.**
    - (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:
      - (A) Use of short explanatory sentences;
      - (B) Use of definite, concrete, everyday words;
      - (C) Use of active voice;
      - (D) Avoidance of multiple negatives;
      - (E) Avoidance of legal and technical business terminology;
      - (F) Avoidance of explanations that are imprecise and reasonably subject to different interpretations; and
      - (G) **Use of language that is not misleading.**
    - (ii) [Reserved]
- (b) Motor vehicle dealer means any person excluded from Consumer Financial Protection Bureau jurisdiction as described in [12 U.S.C. 5519](/usc/12/5519.md).
- (c) Principal promotional document means the document designed to be seen first by the consumer, such as the cover letter.

## Notes

### Amendments

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

### Authority

Authority: Pub. L. 108-159, sec. 311; 15 U.S.C. 1681m(d); 12 U.S.C. 5519(d).

### Source

Source: 70 FR 5032, Jan. 31, 2005, unless otherwise noted.

### Amendments

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