We found that consumers will rate the exact same loan as more expensive depending on the terms in which fees are presented.

Our results show a significant difference in effect size in perceived expensiveness of a loan, based on the way in which its costs are expressed. Nevertheless, when interacted with another factor (loan terms x loan duration), effects were not significant. Given this lack of interaction, we can presume that changing the terms in which a loan is presented will significantly impact the mean perception of loan cost.

This has enormous real-world implications for consumers making financial decisions or purchasing financial products.