Regions Vows to Make Customer Disclosures Simpler

Regions Financial (RF) is trying to make its products easier for customers to understand, in the latest example of a bank simplifying its disclosures.

The Birmingham bank on Tuesday unveiled its "Simplicity Pledge," promising in writing to provide customers with information about the bank's products and services "simply, clearly and in plain language."

Regions also introduced six "Quick Guides," two-page documents that describe and answer questions about checking accounts and loan products.

Some of the language is indeed plain, especially compared to how banks traditionally market their products. For example, one Quick Guide warns customers that Regions' "Ready Advance" payday loans are "an expensive form of credit compared to some alternatives." The guide also explains two ways that customers can repay their payday advances.

The bank's Simplicity Pledge to customers states: "Regions is committed to providing you with the information you need to make good financial decisions and to helping you understand how your accounts and services work - simply, clearly and in plain language."

Bill Askew, senior executive vice president and head of the quality performance division at Regions, said in a press release that the pledge and guides will provide "clarity and transparency" and help customers make educated decisions.

"We know customers want us to make it even easier for them to understand and compare financial services," Askew said in a statement.

Banks, regulators and consumer advocates are increasingly scrutinizing and trying to improve how the industry discloses information to customers. Several banks, including JPMorgan Chase (JPM) and TD Bank (TD), have already adopted the Pew Charitable Trusts' model disclosure form for checking accounts.