A Call for Credit-Card Disclosure

Proposed amendments to the federal Truth in Lending regulations would be a welcome change, Richard Thaler and Cass R. Sunstein argued on the Wall Street Journal opinion page last week...

Proposed amendments to the federal Truth in Lending regulations would be a welcome change, Richard Thaler and Cass R. Sunstein argued on the Wall Street Journal opinion page last week.

Sunstein, who earned his A.B. at Harvard in 1975 and a law degree in 1978, has taught at the University of Chicago Law School since 1981, but returns to teach at Harvard Law School this fall. (He married Lindh professor of practice of global leadership and public policy Samantha Power in July.)

Thaler teaches at the University of Chicago Graduate School of Business. His work figured in The Marketplace of Perceptions, in the March-April 2006 issue of Harvard Magazine.

Even though the proposed rules would require credit-card companies to disclose the terms of agreements in a format more easily understandable for consumers, Sunstein and Thaler recommend taking the rules a step further: to require disclosure in a standardized format that could be aggregated and analyzed by a third party—for instance, a website allowing consumers to compare different card-issuers' rates and fees side by side.

The authors also suggest expanding the disclosure mandate to the mortgage and cell-phone industries.  Those with access to wsj.com can read the piece in its entirety here.

Gottlieb professor of law Elizabeth Warren issued a similar call for requiring clearer disclosure in Making Credit Safer, in the May-June 2008 issue of Harvard Magazine.

You might also like

Nicole Maestas

The Harvard health economist not afraid to get in the weeds

The Professor Who Quantified Democracy

Erica Chenoweth’s data shows how—and when—authoritarians fall.

Making Money Funny

Matt Levine’s spunky Bloomberg column

Most popular

House Committee Subpoenas Harvard Over Tuition Costs

The University must turn over all requested materials related to tuition and financial aid by mid-July. 

Global Reach

A new center in Shanghai reflects Harvard’s growing engagement with the People’s Republic.

The New Gender Gaps

What to do as men and boys fall behind

Explore More From Current Issue

Salsa Squared

Latin dancing fills the streets in Harvard Square   

The Harvard Professor Who Quantified Democracy

Erica Chenoweth’s data shows how—and when—authoritarians fall.

New Harvard Overseers and HAA Directors

Alumni showed increased interest in this year’s elections.