Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329888 
Authors: 
Year of Publication: 
2024
Citation: 
[Journal:] Financial Internet Quarterly [ISSN:] 2719-3454 [Volume:] 20 [Issue:] 4 [Year:] 2024 [Pages:] 56-71
Publisher: 
Sciendo, Warsaw
Abstract: 
According to the regulations in force, including in Poland, loan institutions must disclose the costs of consumer credit. However, these costs can be presented in many ways. By conducting in -depth interviews with experts, we analyse whether the way in which the applicable regulations are imposed supports the credit decisions of the average consumer. Experts' statements show that the regulatory solutions currently in use may deliver far from what is expected. AER, annual effective rate (RRSO in Poland), the key measure of the cost of consumer credit introduced in Poland by the provisions of the Consumer Credit Act, is very ambiguous and, in the opinion of experts, in many cases distorts the actual cost of credit, thus making it difficult for consumers to make rational credit decisions. The conclusions of the study may be of significant importance both for institutions regulating the consumer credit market and for entities operating on this market.
Subjects: 
Annual Percentage Rate
APR
Annual Effective Rate
AER
Consumer Credit
Credit Costs
Time Value of Money
Simple Interest
Compound Interest
Opportunity Cost
JEL: 
G51
G53
G2
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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