Shouldn’t people just read the fine print?
Yes, and AFFIL’s Principles of Fairness in Lending call for full disclosure of all terms in language that is clearly understood by the borrower. But this is not the solution to preventing unfair lending. Even some lenders agree that disclosures can be confusing. There are numerous terms in any credit transaction. Disclosures require borrowers to be self-educated in a number of complex areas of lending. Imagine if there was no regulation of food or drugs, and you had to educate yourself about chemicals, pesticides, and pharmacology. No one expects you to do so; instead, you can trust that the products on store shelves are safe for consumption. You should be able to have the same expectation when shopping for a credit card, mortgage, or any loan product. It is impractical to require consumers to be able to understand, or have the time, to read through the numerous documents given to them when they get credit. It is also impractical to require consumers to have a lawyer review each transa
