Letter-framing improves loan behavior

Intervention · Financial Products

What's the most effective letter format in changing loan behavior?

Intervention Description

The Financial Conduct Authority (FCA) in the United Kingdom tested a series of interventions to improve loan behavior. In a randomised control trial, five different letter groups were employed: a control condition, a condition without risk, a non-personal condition, a condition with bullet points, and a friendly condition. The results of this study demonstrated that in the context of altering loan and mortgage behavior, simple and informal information had the most lasting effect. The response rate was low overall, but the groups with the informal, no risk letter saw the most improvement.


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