Consumers benefit from a standardised front page to loan offers

Consumer inactivity in the mortgage market reduces consumer welfare and providers’ incentive to innovate and compete. This has led The Danish Competition Council to recommend an introduction of a simple frontpage to mortgage loan offers based on an experimental study using behavioural insights.

The article outlines the results from this study, which was designed to understand how consumers respond to current mandatory information requirements.

The study provides insights into how consumer protection policies may create problems for consumers, despite the good intentions that underlie them. The study provides a series of recommendations to increase the effects of mandatory disclosure of information on consumer behaviour in complex markets.