Key Facts Statements For Credit: Do They Work? The Experience of Armenia

Poor financial knowledge can lead to poor credit choices and encourage unhealthy competition between financial institutions. With a Key Facts Statements (KFS), financial authorities can help consumers understand the total cost they would incur with a certain credit product and compare it with other offers.

A KFS is a comprehensive tool, and can have a significant positive effect on consumer credit choice and comprehension if the timing, content, design and delivery methods are appropriate and effective. This study by the Central Bank of Armenia (CBA) combines qualitative analyses from three experiments in Armenia and presents insights from international experience.