Disclosure Definition

A disclosure is an informative statement that is legally required. For example, when obtaining a loan the creditor must disclose the annual percentage rate (APR) of the loan. While the legal intent of a disclosure is to provide pertinent information in an understandable format, many disclosures are deliberately obscured. For example, a loan company may print the APR on a loan form-thus legally complying with the requirement to disclose the APR-but might put the APR in tiny text on page 2, while printing a "teaser" rate in large text on page 1.