Decision Making in Consumer and Mortgage Credit Transactions: Insights from Cognitive Psychology and Analysis on the Efficacy of European Information Remedies Policy Trends in Order to Improve Quality of Contractual Choice
PhD student: Ms C.I. Garcia
Promotor: Prof W.H. van Boom
Duration: 15/4/2009 - 14/4/2013
The global economic crisis has triggered a lively debate on financial services and its impact on consumers live, EU household financial situation in general and the regulation of consumer and mortgage credit markets, examining lending practices in the EU, responsible lending and borrowing, the social cost of over-indebtedness in particular; which have oriented the policy to go for an informed choice and information remedies approach. The analysis of consumer and mortgage credit and its development shows the specific characteristics of this sector of household credit. These differences may be explained by cultural preferences and by such structural factors as differences in tax, legal and regulatory frameworks. Therefor provides a useful case study for examining a variety of regulatory techniques and in which extent they reflect the consumer choice. I further will limit my empirical investigation to firm exploitation of consumer biases involving the consumer and mortgage credit market and find empirical studies of consumer behavior in this regard. BASIC RESEARCH QUESTIONS What should really include a good and effective information policy? Maas information, imposing disclosure obligations(information remedies) on the provider or structured and focused information, timely information. Moreover focusing on the consumer biases involving the consumer and mortgage credit market, does information remedies improve the quality of contractual choice and lead to responsible borrowing practices.