Bank is a supervisor in the area of, among other things, loans and loans. They look at whether consumers get the right information, so that a well-considered choice can be made. The way in which the information is offered, the choice environment, the AFM now also wants to count when determining whether the offer is allowed. Here they use psychological insights.
The consumer behavior report on the consumer credit market shows that the choice environment has a great deal of influence on a consumer’s behavior. The AFM wants the consumer to receive clear information so that they do not borrow too much. An example of this can also be demonstrated by the AFM: the ‘maximum’ option, which was standard in the application form, has been removed from the application for student finance. The applicant can therefore only fill in the desired loan amount. This has led to a halving of the number of students who borrowed the maximum possible loan amount.
You might know the slider bar, the bar with money amounts, where you can indicate which loan amount you want from the credit provider. If there are high amounts at the bar, people are inclined to borrow more, as the AFM suspects. It also appears that the words ‘balance’ or ‘available space’ evoke positive associations, even if they are used in a loan or credit. Another study showed that red standing is not perceived as a debt, if the balance deficit is under ‘available resources’.
The regulator wants to investigate whether people make different choices when the total costs of a credit are mentioned in complaints, then only the monthly amount. According to the AFM, people often only look at the short term and less at the consequences. In order to prevent negative control, the AFM wants to see the advantages and disadvantages of a loan in advertising. The regulator will talk to providers of loans for this. Behavioral scientists are also consulted, which can lead to new rules. The AFM thinks that it needs a year for further research, after which new rules can be introduced.
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