Do you think average Americans have the information they need to sufficiently protect themselves against abusive...

Do you think average Americans have the information they need to sufficiently protect themselves against abusive loan products?

Foreclosures, bankruptcies, defaults and banking profits are all increasing. What does this mean for consumers?

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Expert Solution

Average Americans do not have enough understanding of the different types loan products, the permissible level of interest rate charged and their own rights towards these products. Hence, it can be said that average Americans do not have enough information to trace out the abusive nature of loan products. For this, they need a good and honest financial advisor who can explain them the fine details of the loan products, its pros and cons and liabilities towards the borrowers. So, it is a case of information asymmetry in the financial marker among the average Americans.

It means to consumers that risk and uncertainties are increasing in the market. One company and investment done in that company can give profit, but another company can also file bankruptcy and make huge losses to the consumers. Hence, it is very important for the consumers to be aware of the market scenario, collect as much information as possible and take informed decisions. Even, consumers should take support of qualified professionals who can bring exclusive data and information so that consumers can be more assured of their decisions.

Rahul Sunny answered 1 year ago

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