Nudges to claim redress

Framing Effect and Financial Products
Intervention Financial Products

The best format to inform consumers of redress claims.

Intervention Description

Researchers at the Financial Conduct Authority (FCA) in the United Kingdom exposed consumers who were eligible for redress from a corporation to seven different variations of a letter informing them of redress claims. They found that the most effective nudge techniques were simplifying the letter into bullet points and sending multiple reminder letters. Other changes (the envelope’s appearance and the inclusion of a logo) had little effect. Surprisingly, including the CEO’s signature actually decreased response rates.