Price comparisons on loans

Status Quo Bias and Consumer Protection
Intervention Consumer Protection

Intervention Description

The United Kingdom’s Financial Conduct Authority (FCA) contacted 8,088 consumers to take part in an online experiment to improve the ability to make accurate price comparisons of loans. People considering taking out a loan were asked to look through a price-comparison list and select the cheapest option. Different treatment groups in this experiment were provided with different amounts of choices and also choices listed in different orders. The worst performers were those who had to click through the options or had to calculate themselves which was cheapest.