financial disclosure and consumer credit

A number of important new laws have appeared in recent years designed to protect the consumer in dealings with lending institutions. One major area of emphasis in recent consumer legislation is financial disclosure- making all relevant information about the terms of a loan contract available to the borrower before a commitment is made. The basic assumption is that an informed borrower will be a wise user of credit. Moreover, if all important information is laid out "on the table" before a loan agreement is reached, this many encourage the consumer to shop around to find the cheapest and most-convenient sources of funds. However, there is considerable debate today on whether consumer-protection legislation has really accomplished its goals. Both lenders and borrowers are confronted with a confusing array of laws and regulations which encourage violations and may be of little benefit to the consumer.