Information about finances helps us make financial decisions
Disclosing more information about ourselves can help make better decisions
The authors tested the effects of mandated disclosure of information as a mechanism to promote people to take action. In this study, disclosing personal financial information helped loan borrowers make smarter decisions by reducing the take-up of payday loans and lowering their use of high-cost debt. This suggests that consumer information regulations could aid the regulation of payday borrowing and other financial situations.