Information about finances helps us make financial decisions

Base Rate Fallacy and Financial Products
Intervention Financial Products

Disclosing more information about ourselves can help make better decisions

Intervention Description

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.