Proposed Government Suggestions of Consumer Finance.

Proposed Government Suggestions of Consumer Finance.


The Administration feels they have a behavioral concept, to provide the consumer with what is best when shopping for complex financial products.

Such as shorter-term mortgages or those longer-term, or adjustable-rate versus standard term mortgages. Or whether to choose an option despite prepayment penalties. Or the question of which down payments on mortgages.

So the Administration is proposing that there be a simplified version of financial choices for simpleton consumers, that takes the burden away. It takes the term plain-vanilla to a new level, by suggesting a preferred option for all.

I can see having everything on one or two sheets of paper, in large print and in plain English for non-lawyers. The problem, however, is that such an standard option would soon become the only one available.

You can be sure that the threat of a lawsuit from an enterprising lawyer would drive away any other product from being sold by a provider or financial institution.

Remind you of the old Soviet Union type of shopping? You got what the government thought was good for you.