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Consumers benefit from simplified information disclosure

By law, advertisements for consumer credit must include standard information in the form of a financial disclosure. The purpose of the disclosure is to ensure that consumers understand the central financial characteristics of the loan before deciding whether to purchase it.

Behavioral research has revealed that voluminous and complex information may be counter-productive.
This analysis demonstrates that consumers benefit from less information in advertisement material, if it still provides the consumer with key financial aspects of the credit. With less information, consumers are significantly better at recalling individual elements from credit advertisements presented in a simulated commercial break and find it easier to compare and choose the better of two offers.