Speaking at the Cleveland Fed's 2008 Community Development Policy Summit on consumer credit markets, Fed Governor Randall Kroszner said that more disclosures on some credit products may not be sufficient to protect consumers.
"There are challenges in ensuring that the appropriate information is provided to help markets function efficiently," said Kroszner. "Product suppliers may not always provide needed information or present it in a format that enables meaningful comparison across competing products. Consumers must also have the financial skills to evaluate the information effectively. However, even in the presence of good information, practices can emerge that offer little benefit to consumers and, in some cases, may cause harm."
Kroszner added that the Fed is expected to finalize new rules on mortgage lending by July, and that rules on credit card lending should be finalized by year-end.
He made no comments on monetary policy or the state of the U.S. economy.
By Erik Kevin Franco and edited by Stephen Huebl