May 12, 2012
In the Media
Business Forum: Subprime borrowers need more protection
By Jeff Sovern
Pittsburgh Post-Gazette
May 12, 2012
Unfortunately, unlike restaurant safety, loan disclosures cannot
simply be boiled down to a single A, B or C. Loan disclosures, to
be useful, require some degree of complexity. And that complexity
is too much for some consumers.
Requiring disclosures for those who cannot understand them is
pointless. We need to focus on understanding in borrowing rather
than simply disclosure. Otherwise, we must accept that some
borrowers will not understand what they are pledging to do, with
the consequent risks of default and another Great Recession.