Testing of Bankruptcy Periodic Statement 

Forms for Mortgage Servicing

February 2016
1

Contents

1.0 Introduction ...........................................................................................................................................2

2.0 Round 1 .................................................................................................................................................6

3.0 Form Changes: Round 1 to Round 2................................................................................................. 20

4.0 Round 2 .............................................................................................................................................. 26

5.0 Form Changes: Round 2 to Round 3................................................................................................. 40

6.0 Round 3 .............................................................................................................................................. 45

7.0 Conclusions ........................................................................................................................................ 57

Appendix A: Round 1 Forms ..................................................................................................................... 60

Appendix B: Round 2 Forms..................................................................................................................... 65

Appendix C: Round 3 Forms..................................................................................................................... 71

Appendix D: Likert-Scale Ratings Summary ............................................................................................ 77

Appendix E: Round 3 Chapter 7 Eye Tracking Findings.......................................................................... 82
2

1.1 Purpose of Testing

In July 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection 

Act (the Dodd-Frank Act). Section 1420 of the Dodd-Frank Act amended the Truth in Lending 

Act (TILA) to require that a creditor, assignee, or servicer of any residential mortgage loan—a 

closed-end credit transaction secured by a dwelling—provide a periodic statement to the 

borrower for each billing cycle. The Dodd-Frank Act required the Federal Reserve Board and,

subsequently, the Consumer Financial Protection Bureau (the CFPB or Bureau), to prescribe 

standard form(s) for the required disclosure, taking into account that the statements might 

be transmitted in writing or electronically.1 

On January 17, 2013, the CFPB issued amendments to Regulation Z, TILA’s implementing 

regulation, to implement the periodic statement requirements and related exemptions.2 The 

CFPB prescribed three sample periodic statement forms,3 developed and validated through, 

among other things, three rounds of consumer testing.4 On October 15, 2013, the CFPB 

amended Regulation Z to create an exemption from the periodic statement requirement 

when any borrower on a mortgage loan is in bankruptcy or has discharged personal liability 

for a mortgage loan through bankruptcy.5

On November 20, 2014, the CFPB issued a Notice of Proposed Rulemaking (NPRM) in which 

it proposed to revise Regulation Z’s bankruptcy exemption from providing periodic 

statements. The NPRM proposed that, with certain exceptions, a creditor, assignee, or 

servicer would be required to provide periodic statements to mortgage loan borrowers who 

are in bankruptcy or who have discharged personal liability for a mortgage loan through 

bankruptcy. The NPRM included two proposed sample periodic statement forms for such 

borrowers: one tailored to borrowers who are debtors in Chapters 7 or 11 of the Bankruptcy 

Code (or who have discharged personal liability for a mortgage loan), and one tailored to

borrowers who are debtors in Chapters 12 or 13 of the Bankruptcy Code. For simplicity, this 

report refers to these as the Chapter 7 and Chapter 13 forms, respectively. The proposed 

Chapter 7 and Chapter 13 forms’ initial design, statements, and language were informed by

(and in some aspects were identical to) the CFPB’s existing sample periodic statement 

 

1 The Board’s authority to develop standard forms and its responsibility for implementing TILA transferred to 

CFPB on July 21, 2011. See Dodd-Frank Act, secs. 1061(b)(1), 1420.

2 See 78 FR 10695 (Feb. 14, 2013); see also 12 CFR 1026.41.

3 See Regulation Z, Appendix H-30(A) through (C).

4 The CFPB published a report summary of the findings of the consumer testing. ICF Int’l, Inc., Summary of 

Findings: Design and Testing of Mortgage Servicing Disclosures (Aug. 2012), available at

http://www.regulations.gov/#!documentDetail;D=CFPB-2012-0033-0003.

5 See 78 FR 62993 (Oct. 13, 2013); see also 12 CFR 1026.41(e)(5).

1.0 Introduction
3

forms, which were developed and tested in 2012. The proposed forms also included some 

modified or new disclosures to account for the borrower’s bankruptcy status. In the 2014 

NPRM, the CFPB stated that it would conduct consumer testing on the proposed Chapter 7 

and Chapter 13 forms before issuing the final rule.

Following publication of the NPRM, the CFPB contracted with Fors Marsh Group (FMG) to 

assist in the development and testing of bankruptcy-specific periodic statement forms, 

including exploring consumers’ perceptions and comprehension of bankruptcy-specific 

disclosures. Bankruptcy-specific forms were tested through three rounds of in-depth 

cognitive consumer interviews. The first round tested the proposed Chapter 7 and 

Chapter 13 forms as well as revised forms that were modified in response to public 

comments the CFPB received on the NPRM. All of the forms were revised between rounds to 

address any usability or comprehension issues that became apparent, as well as to further

respond to public comments on the NPRM. The testing was designed to ensure that the

forms used plain language comprehensible to consumers, contained clear format and 

design, and effectively communicated information to the consumer, while preserving most 

elements of the existing, previously tested sample periodic statement forms.

1.2 Methodology

FMG conducted 51 one-on-one interviews across three groups: (1) 28 individuals with 

Chapter 7 bankruptcy experience; (2) 18 individuals with Chapter 13 bankruptcy experience;

(3) one individual with Chapter 11 bankruptcy experience; and (4) four individuals with no 

prior bankruptcy experience.

6 Each interview lasted approximately 60 minutes and was 

based on an interview guide developed collaboratively between FMG and CFPB staff. Each 

interview began with a series of introductory questions about the participant’s experiences

with mortgages and bankruptcy. Participants who had filed for Chapter 7 bankruptcy were 

generally asked to review the Chapter 7 forms, while participants who had filed for 

Chapter 13 bankruptcy were asked to review the Chapter 13 forms.

7 Participants were 

asked to review the forms just as they would have had they received them in the mail. 

During this portion of the interview, the interviewer asked participants to “think aloud” as 

they reviewed the forms and to comment on any information that stood out to them or that 

seemed confusing or unclear.

 

6 One Round 1 Chapter 13 participant reported filing for both Chapters 7 and 13, with the Chapter 13 filing 

being more recent. Another Round 1 Chapter 13 participant initially filed for Chapter 13, but the case 

converted to Chapter 7. Both of these individuals are counted among those with Chapter 13 experience in the 

above totals. 

7 In the case that participants had experience with more than one chapter of bankruptcy, preference was given 

to their Chapter 13 experience. One participant who had never filed for bankruptcy reviewed the Chapter 7 

statements, while the remaining three participants with no bankruptcy experience reviewed the Chapter 13 

statements.
4

After participants reviewed the forms, they were asked a series of questions to measure 

their understanding of the content. At the end of each interview, the interviewer consulted 

with CFPB and FMG observers to identify any useful follow-up questions.

Interviews took place in three locations: Arlington, Virginia, during the week of May 26, 

2015; Fort Lauderdale, Florida, during the week of July 13, 2015; and Chicago, Illinois, 

during the week of August 3, 2015. Seventeen interviews were completed at each location, 

with a total of 26 participants reviewing the Chapter 7 forms (“Chapter 7 Participants”) and 

25 participants reviewing the Chapter 13 forms (“Chapter 13 Participants”). See Table 1 for 

a more specific breakdown.

 

Table 1. Number and types of interviews at each location. 

Testing 

Round 

Location 

Chapter 7 

Participants 

Chapter 13 

Participants 

1 Arlington 9 8

2 Fort Lauderdale 10 7

3 Chicago 7 10

Participants were recruited via social media, panel lists, and public bankruptcy records. 

Potential participants completed a screener, either on the internet or over the phone, which

gathered general background information regarding their bankruptcy and mortgage 

experiences. Preference was given to those respondents who had filed for bankruptcy, who 

have or had a mortgage (preferably when they filed for bankruptcy), and who had trouble 

making mortgage payments within the past two years. To increase the potential sample, 

participants meeting one or more, but not all, of the criteria were also included. Among 

respondents who did not meet all screening criteria, preference was given to those who had 

bankruptcy experience, even if they had not previously had a mortgage. As such, 

participants were chosen primarily based on their experiences in bankruptcy and mortgages, 

and secondarily to ensure demographic variation. Ultimately, 47 of 51 participants had filed 

for bankruptcy (40 of those individuals had a mortgage when they filed), and 42 of the 51 

participants reported that they had had trouble making mortgage payments within the last 

two years.

One major limitation of this research was that the context in which these forms were tested 

differed meaningfully from the context in which they were used. Participants were placed in 

a hypothetical scenario of having a mortgage while undergoing a specific chapter of 

bankruptcy. In some cases, this led to confusion because, unlike a consumer who is familiar 

with the terms of his or her mortgage and how it is treated under the bankruptcy plan, (1) 

participants were inferring information from the form about both the mortgage and their 

bankruptcy case; (2) not all participants had a mortgage while in bankruptcy; (3) not all 
5

participants were delinquent on their mortgages when they filed for bankruptcy; and (4) not 

all participants had bankruptcy experience. In addition, some participants who had 

bankruptcy experience made their mortgage payments through a trustee while others did 

not. Outside of testing, however, borrowers receiving these forms may be aware of the 

specifics of their bankruptcy case and mortgage status. Thus, the results presented are on 

form comprehension under a hypothetical situation. This type of limitation exists in any 

similar testing, and the results of testing were interpreted with this in mind. 

Five forms were tested at the Arlington location, and six forms were tested at each of the 

Fort Lauderdale and Chicago locations. The documents went through an iterative design 

process in which the forms were revised after each round; consequently, the composition of 

the forms and the resulting interview content changed from round to round. 

Forms were tested for comprehension, perceived utility, and attitudinal reactions. Copies of 

all of the forms tested can be found in Appendices A, B, and C. 

 

1.3 Forms 

The Chapter 7 and Chapter 13 forms tested were designed to be given to consumers each 

billing cycle, providing information about their loans. Each form was printed on a single, 

legal-sized page. Among other pieces of information, the forms included:

 A “Bankruptcy Notice” or similar disclosure, consisting of a narrative statement 

acknowledging the consumer’s status as a debtor in bankruptcy or the discharged 

nature of the mortgage loan and advising that the periodic statement was being sent 

for informational purposes only; 

 A summary of general account information, such as the principal obligation, interest 

rate, and whether there is a prepayment penalty;

 The amount of and due date for the next payment;

 A breakdown of current and past payments by principal, interest, escrow, and fees;

 A description of recent transaction activity, including payments received and the 

itemization of fees and charges;

 An Important Messages box;8 and

 A payment coupon that consumers could return with a payment by mail.

 

8 The Chapter 13 forms tested in Round 1 did not include an Important Messages box. All of the other forms 

tested in Rounds 1 through 3 did include an Important Messages box.
6

The Chapter 7 forms also included a listing of recent, unpaid periodic payments and a 

reference to mortgage counseling assistance, which would be included for consumers who 

are delinquent on their mortgage loans. The Chapter 13 forms generally set forth the current 

balance of any arrearage that existed on the mortgage loan before the consumer filed for 

bankruptcy (the “pre-petition arrearage”), as well as recent payments that reduced the 

arrearage.

The information on the forms was organized by grouping-related concepts and information 

together into boxes, each of which had a short but descriptive heading (e.g., “Account 

Information” or “Explanation of Payment Amount”).

1.3.1 Generalized Differences Across Forms

Within each round, the forms varied primarily in the content and presentation of information 

about the loan’s bankruptcy status, the amount due, and the application of payments. 

Detailed differences between rounds are described in subsequent sections of this report.

1.4 Report Structure

This report discusses chronologically the findings and issues encountered during testing. 

Section 2.0 covers Round 1; Section 4.0 covers Round 2; and Section 6.0 covers Round 3. 

Section 3.0 diagrams the changes between Rounds 1 and 2 while Section 5.0 diagrams the 

changes between Rounds 2 and 3. Findings for each aspect of the forms are presented 

separately. The discussion of each round of testing includes detailed graphics cataloging the 

differences in the forms specific to that round.

2.1 Forms and Methodology 

Round 1 was held in Arlington, Virginia. The Chapter 7 forms presented a scenario in which 

the consumer was behind on mortgage payments. The consumer had made a partial 

payment during the prior billing cycle and had been charged a late fee for not making the full 

payment by the end of the grace period. The consumer also had been charged a property 

inspection fee. 

Two Chapter 7 forms were tested: the Proposed Form from the NPRM and a Current Pay

Form. (The forms can be found in Appendix A.) As shown in the figures in Section 2.2, major 

differences between the forms included: 

1) The presentation and content of the Bankruptcy Notices varied. On the Proposed 

Form, the Bankruptcy Notice was displayed within a box, whereas the Current Pay

2.0 Round 1
7

Form did not have a box. The Current Pay Form changed the order and precise 

wording of the information in the Bankruptcy Notice. 

2) The Payment Amount on the Proposed Form included all outstanding amounts (i.e.,

the regular monthly payment due, all fees, and past unpaid amounts). The Payment 

Amount on the Current Pay Form included only the amount of the regular monthly 

payment and fees due (but not past unpaid amounts). This reduced Payment Amount 

was used primarily to determine whether participants reading this disclosure would 

still understand that they were behind on the mortgage and the amount they believe 

they should pay. The Current Pay Form had an additional disclaimer under the 

Payment Amount at the top of the form, noting that the Payment Amount did not 

include any past due amounts.

3) The Proposed and Curreny Pay Forms used different language in the disclaimer on 

the payment coupon at the bottom of the form.

The Chapter 7 forms presented a scenario in which the consumer was behind on mortgage 

payments. The consumer had made a partial payment during the prior billing cycle and had 

been charged a late fee for not making the full payment by the end of the grace period. The 

consumer also had been charged a property inspection fee. As discussed above, the forms 

presented the payment amount differently and also differed in the presentation and wording 

of the Bankruptcy Notice and disclaimer on the payment coupon.

Three Chapter 13 forms were included in Round 1: the Proposed Form, a Revised Form, and 

a Principal and Interest (P&I) Form (See Appendix A). As shown in the figures in Section 2.3, 

major differences between the forms included: 

1) The Bankruptcy Notice in the Proposed Form had a box around it, whereas the 

Revised Form did not have a box. 

2) The Bankruptcy Notice statement, the disclaimer in the Payment Amount box, and 

the disclaimer on the payment coupon were all worded slightly differently in the 

Revised Form than they were in the P&I and Proposed Forms. 

3) The forms referenced the pre-petition arrearage in different ways, with the Proposed 

Form referring to this section as “Pre-Petition Arrearage” and the Revised Form and 

the P&I Form referring to it as “Pre-Bankruptcy Debt (Arrearage).”

The P&I Form was not tested directly but was instead involved in a separate activity. It was 

identical to the Revised Form except that it reflected the mortgage loan account information 

that would be disclosed on a statement provided to the borrower the following month.

The Chapter 13 forms presented a scenario in which the consumer was behind on mortgage 

payments when the consumer filed for bankruptcy. The forms showed two payments from 

the previous month: one to pay the pre-petition arrearage and one to pay the regular 

periodic payment due under the mortgage loan (i.e., the “post-petition payment”). In Round 
8

1, Chapter 13 Participants also engaged in an activity in which they compared a form

reflecting the account information as of April 2015 to a second form reflecting the account 

information as of May 2015. Participants were asked if they noticed any differences 

between the principal-interest breakdown of the payment due on the April 2015 form with 

how that payment was applied the following month.
9

2.2 Form Difference Overview: Chapter 7 

Form Difference Overview

Proposed Form Current Pay Form

1

Message format and 

content changed

2

Payment Amount changed

3

Coupon disclaimer content 

changed

1 Message format and content changed

The Bankruptcy Notice in 

the Proposed Form was all 

non-bolded and contained 

in a box (top), whereas in 

the Current Pay Form, the 

for information only 

statement was bolded and 

the box was removed 

(bottom). Additionally, the 

Current Pay Form changed 

the order and precise 

wording of the information 

in the Bankruptcy Notice. 

 
10

2 P ayment Amount changed

The Payment Amount on the Proposed Form (left) included all outstanding amounts, 

while the Payment Amount on the Current Pay Form (right) included only the regular 

monthly payment due and fees. The Current Pay Form also featured a disclaimer 

explaining that the Payment Amount did not include past unpaid amounts. 

3 Coupon disclaimer content changed

The coupon disclaimer on the Proposed Form was displayed in only one paragraph 

(top), while the Current Pay Form had two paragraphs (bottom). Additionally, the 

Current Pay Form used different, more concise language in the coupon disclaimer.

 

 
11

2.3 Form Difference Overview: Chapter 13 

Form Difference Overview

Proposed Form Current Pay Form

1

Message format and 

content changed

2

Payment Amount disclaimer 

content changed

3

Payment coupon disclaimer 

content changed

4

Pre-Petition header and 

content changed

1 Message format and content changed

The Bankruptcy Notice in 

the Proposed Form was 

non-bolded and contained 

in a box (top), whereas in 

the Current Pay Form, the 

informational purposes 

statement was bolded and 

the box was removed 

(bottom). Additionally, the 

Current Pay Form split the 

content into more 

paragraphs than the 

Proposed Form and 

rearranged some of the 

content. 

 
12 2 Payment Amount disclaimer content changed

The disclaimers on the Proposed Form (left) and Revised Form (right) both stated 

essentially the same information, but they used different wording. 3 Payment coupon disclaimer content changed

The payment coupon disclaimer on the Proposed Form was displayed in only one 

paragraph (top), while the Revised Form had two paragraphs (bottom). Additionally, 

the Revised Form also informed borrowers how to make checks payable. 4 Pre-Petition header and content changed

The Proposed Form referred to the “Pre-Petition Arrearage” whereas the Revised 

Form referred to the “Pre-Bankruptcy Debt.” The Proposed Form also informed users 

of how much they had paid towards this debt year-to-date, while the Revised Form 

informed users of how much they had paid towards this debt during the entire 

bankruptcy case. 
13

2.4 Participants’ Experience with Mortgages and Bankruptcy 

As discussed in the Methodology section above, the vast majority of participants had 

experience with having a mortgage while in bankruptcy. In Round 1, 14 of 17 participants 

reported that they had a mortgage when they filed for bankruptcy. Eight of those participants 

said that they gave up the house while in (or near) bankruptcy, while six participants kept 

their homes through the bankruptcy process.

Participants generally expressed positive sentiments towards receiving these forms, 

particularly if they were trying to keep their homes. Some examples of positive comments 

included:

 “I don’t know why anybody would not want to receive these notices.” — Chapter 7

 “I would want to know how I could recover. If I wasn’t keeping the home, it wouldn’t 

matter.” — Chapter 7

 “I would rather get this. It would help. I would be able to keep up with it a lot more. . .

It would alleviate me calling my trustee a lot.” — Chapter 13

 “This would be wonderful. I see some of the things I was trying to avoid with 

foreclosure. This would help a lot.” — Chapter 13

However, some participants had an immediate negative reaction to the forms that could 

stem from a distrust or suspicion of mortgage companies and creditors (four participants 

directly mentioned this point). This distrust or suspicion seemed to contribute to some 

participants finding that the forms were not consumer-friendly. Some participants said: 

 “I don’t trust any mortgage company.” — Chapter 7

 “Nothing tells you that you filed on a particular day, paid on a particular day. This is 

not consumer-friendly. People will not understand this.” — Chapter 13

 “The words the banks use [are] too confusing. The statements are not user-friendly 

and they are harassing.” — Chapter 13

2.5 Bankruptcy Notice 

Almost all participants in the first round of testing said the form was for informational 

purposes rather than attempting to collect a debt, and they could correctly identify that the 

borrower was in bankruptcy. For example, one Chapter 7 Participant said, “The purpose is to 

inform the client about their payments they’ve received, the amount that is still owed on the 

mortgage. It’s just like a regular mortgage statement they would send you irregardless [sic] 

of if you were in bankruptcy or not.” Although the majority of participants thought the form 

was primarily informational, two Chapter 7 Participants and one Chapter 13 Participant did 

express some confusion about what the document was and why they would be receiving it. 

As one of the Chapter 7 Participants said, “If this is for information only, then why are they 
14

sending you a bill that is terrifying? . . . If it’s informational, what is the intent? I don’t get it at 

all.”

The Proposed Forms stated at the top that they were “for informational and compliance 

purposes only.” The Chapter 7 Current Pay Form also stated on the payment coupon that 

recipients could “choose to make a payment,” but it looked in many respects like a normal 

mortgage statement requesting payment. This confused some participants, with some 

interpreting the form to be presenting an account history rather than as an actual mortgage 

statement, while some still viewed it as a request for payment. The participants who 

expressed confusion about this language made comments such as:

 “This is organized but still feels like there’s a lot of confusing information on there. 

Starting with ‘This is for your informational purposes only,’ and ‘This is a debt,’ so I 

don’t understand that part. Language is kind of confusing; to me there’s a lot of 

conflicting information.” — Chapter 7

 “[The purpose of the notice] is to tell me if I am in bankruptcy, but they’re still 

sending me a bill. You shouldn’t get a bill when you’re in bankruptcy. So why am I 

still getting a bill?” — Chapter 13

 “[It] seems like there is a double message here: ‘information only,’ but they’re also 

showing you a payment amount and a choice to pay it. It’s confusing. . . this is very 

deceptive, I don’t get it.” — Chapter 7

Similarly, the phrase “collect a debt against you personally” caused some confusion, as a 

few participants said that the form looked like it was trying to collect a debt, or that it was 

requesting a payment. These participants made comments such as: 

 “‘Not trying to collect a debt?’ I thought they were. Maybe they’re saying we’re not 

associating you with the debt yet. Obviously the unpaid payments are a debt.” 

— Chapter 7

 “The voluntary payment thing, I don’t understand.” — Chapter 7 

A few other participants expressed confusion specifically about the word “personally,”

saying:

 “There is a debt; I owe the debt; so when they say we’re not trying to collect against 

you ‘personally,’ that sounds squirmy to me.” — Chapter 7

 “I’m thrown that they’re not ‘collecting a debt against you personally.’” — Chapter 7

Three participants mentioned preferring when the phrase—“This statement is for information 

only. We are not trying to collect a debt against you personally.”—was bolded at the top of 

the unboxed disclaimer, as it drew their attention to the important information that the form 

was not a bill of any kind.
15

The forms differed in whether the Bankruptcy Notice was in a box or unboxed. Participants 

generally preferred seeing the Bankruptcy Notice in a box as opposed to unboxed, with eight

of 11 participants mentioning a preference for the box (six of nine Chapter 7 Participants;

two of two Chapter 13 Participants [only two of eight Chapter 13 Participants were asked 

about the box specifically]). 

The Bankruptcy Notice on the Current Pay Form (Chapter 7) and Revised Form (Chapter 13)

stated that the mortgage company still had a lien on the property and the right to foreclose if 

the loan was in default. This language was considered harsh or threatening by one Chapter 

13 Participant, who said, “‘We have the right to foreclose.’ This is really harsh wording. This 

is really kind of strong. I don’t like the wording at all. Makes me feel discouraged.”

When asked where they should send a payment, Chapter 13 Participants had varying 

answers. Four indicated that they would send it to the servicer, identified on the form as 

Springside Mortgage; two said that it would depend on whether they had been instructed to 

send it to a trustee; and the remaining two responded that they did not know. When asked 

whom they would contact if they had questions about where to send their payment, six 

participants said they would contact the servicer, Springside Mortgage, with several 

referencing the customer service number provided on the form. The remaining participants 

mentioned contacting an attorney or their trustee.

Part of the Bankruptcy Notice disclaimer led many participants to indicate that Chapter 13 

Revised and P&I Forms were not trustworthy. Specifically, the sentence, “You should know 

that the information on this statement may not be up to date” caused participants to 

express less trust for the forms. Participants said:

 “If it’s not up to date, then why would they send it to you in the first place?”

 “This is telling me right now that this information might not even be accurate. I did 

not get that sense from the other one.”

Participants seemed to prefer the softer language on the Chapter 13 Proposed Form: “The 

information disclosed on the periodic statement may not reflect payments you have made to 

the trustee and may not be consistent with the trustee’s records.” This statement clarified 

why the form might not be up to date, which appeared to ease participants’ concerns about 

the form’s accuracy. For example, one participant said “This doesn’t reflect payments that 

the trustee may have received so it might not be consistent with their records. Usually, the 

trustee will send you a statement with all of your payments.”

2.6 General Account Information 

All participants who were asked (15) correctly identified the interest rate as 4.75%. Similarly, 

all participants who were asked (14) correctly identified the outstanding principal of the 
16

mortgage. A majority (eight of 14) correctly said that they would be charged a pre-payment 

penalty for paying down their mortgage early.

2.7 Current Payment Due and Due Date 

The term “Payment Date” confused some participants. When asked when their next 

payment was due, a few participants were unable to determine that the payment was due 

on April 1st. Five of 17 participants (three of nine Chapter 7 Participants; two of eight

Chapter 13 Participants) expressed some confusion or hesitation about the due date, 

explaining that the phrase “Payment Date” did not explicitly indicate that the payment was 

“due” on that date. Some participants were confused about whether “Payment Date”

referred to when the next payment would be due, or when the previous payment was made. 

Participants who could not readily identify the Payment Date made comments such as:

 “It’s probably due the first, but I don’t think that’s clear. It doesn’t say ‘Due.’ Should 

say ‘Payment Due Date.’” — Chapter 7

 “I don’t see a due date. What grabs my attention is the unpaid amounts.” 

— Chapter 7

Some of this confusion might have stemmed from the fact that the Payment Date 

(4/1/2015) on the tested form was before the testing date (May 2015), while a mortgage 

statement would normally list a due date in the future.

The Chapter 7 Proposed Form listed the payment amount as $4,339.13 (see Figure 2.7.1, 

Left). This amount reflected the borrower’s regular monthly payment, total fees and charges, 

and unpaid past payments. Seven of nine participants responded with this amount when 

asked what they were being asked to pay this month. By contrast, the Current Pay Form 

listed only $2,079.71 (see Figure 2.7.1, Right) as the payment amount, reflecting only the 

regular monthly payment and the total fees and charges (i.e., unpaid past amounts were not 

included in the payment amount on this form). The total amount owed ($4,339.13) was

shown only in the Account History section of the Current Pay Form and was not displayed in 

either the Payment Amount box or the Explanation of Payment Amount box. Participants 

generally preferred having the full amount owed in the Payment Amount box, broken out in a 

manner similar to the Proposed Form. Four participants expressed confusion regarding

whether the $4,339.13 on the Current Pay Form included the $2,079.71 they were being 

asked to pay. Providing the full $4,339.13 but stating that $2,259.42 came from unpaid 

past payments seemed to be the clearest for participants. As one participant said, “[The 

Proposed Form] is easier to understand. Only difference numerically is the explanation of 

payment amount; it adds in the unpaid past payments and makes that very clear what your 

regular monthly payment is and what it would have been.”
17

 

Chapter 7 and Chapter 13 Participants generally were able to explain the components of the 

Total Payment Amount when asked why the form was asking them to pay that amount. Most 

understood the Total Payment Amount consisted of the regular monthly payment, fees and 

charges, and (if applicable) any past due amount. However, some expressed confusion over 

exactly how the past due amount was calculated, not realizing that adding the Unpaid Past 

Payments to the Total Fees and Charges in the Explanation of Payment Amount box would 

equal the same amount as adding the Unpaid Balances from 2/1/2015 and 3/1/2015 in 

the Account History box. This limited confusion did not affect these participants’ overall 

understanding of how much they were being asked to pay.

Payment Coupon. Several participants expressed confusion over the Chapter 7 Current Pay

Form’s payment coupon wording that began, “If you filed for bankruptcy and you choose to 

make a payment. . .” Because the Current Pay Form otherwise indicated that the servicer 

was aware of the bankruptcy status, these participants were confused by the uncertainty in 

the phrase, “if you filed for bankruptcy.” Some participants requested that the language be 

changed to explicitly state that they filed for bankruptcy and that they have a choice in 

whether they make a payment. The participants who expressed this confusion made 

comments such as:

 “[I] just think there should be more information. If they’re truly concerned about the 

consumer, why don’t they include a true and honest statement that says, ‘You filed 

for bankruptcy; you are not obligated to pay. If you choose to keep your house, then 

you must pay on time or we can foreclose. The payment is voluntary because you 

may choose to vacate your house and we will foreclose on it.’ This is just stressful, 

the message is not clear.”

 “Why did they say, ‘our records show you have recently filed for bankruptcy’ and then 

here they say, ‘if you filed for bankruptcy. . .’ Obviously they know you did file for 

bankruptcy.”

Figure 2.7.1. Differences in the Chapter 7 Explanation of Payment Amount Boxes. 

Left: Proposed Form Explanation of Payment Amount Boxes.

Right: Current Pay Form Explanation of Payment Amount Boxes.
18

However, participants did not express the same concerns over the language on the 

Proposed Form’s payment coupon, even though it also included conditional language 

stating, “If you are currently a party in a bankruptcy case. . .” Participants responded 

favorably to the Proposed Form’s statement that the borrower could “choose to make a 

voluntary payment.” The word “voluntary” appeared to help convey that the notice was not 

asking participants to make a payment. When responding to the Proposed Form, 

participants said:

 “They’re willing to accept voluntary payment. Absolutely helpful. If you want to keep 

your house, then you can make a payment.”

 “This is more detailed, says why they’re sending it to you and says that the payments 

are completely voluntary.”

 “I like that it explicitly says that it is a voluntary payment; the first doesn’t tell you 

that. If it’s voluntary, that gives me the indication that I don’t have to make that 

payment.”

While most Chapter 13 Participants understood and preferred the language on the 

Chapter 13 Proposed Form, one potential exception was for the notice under the Payment 

Amount, which directed participants to see their bankruptcy plan for detail about who is 

responsible for making their mortgage payments. Some participants seemed confused 

about the trustee making payments on the mortgage “and other debts.” Participants found 

clearer the Chapter 13 Revised Form’s more simple language, though most participants 

generally understood what was being communicated by this statement on both forms.

2.8 Transaction Activity and Past Payments 

Overall, both Chapter 7 and Chapter 13 Participants were able to use the Transaction 

Activity and Past Payments Breakdown sections on the forms to locate information on fees 

and past payments. 

Chapter 7 Participants were able to identify whether they had been charged fees, the reason 

for the fees, and the amount of interest paid year-to-date. Seven of eight Chapter 7 

Participants (the ninth was not asked) were also able to locate and correctly interpret the 

partial payment disclaimer, which informed participants that partial payments are not 

applied to the mortgage balance, but are instead held in a separate suspense account. 

Some participants noted that they would like more information about the suspense account, 

such as how much they have to pay to get their partial payments applied to their mortgage 

balance, how much is currently in the suspense account, and what would happen to that 

money if they chose to not make any further payments. 

On the Chapter 13 forms, six of eight participants were correctly able to identify that no fees 

had been charged (on the Chapter 13 forms, the Explanation of Payment Amount box
19

disclosed that zero fees were charged). All of the Chapter 13 Participants were able to use 

the Transaction Activity section of the forms to correctly identify the amounts and dates of 

previous payments that had been made. And seven of the eight Chapter 13 Participants 

were able to use the Past Payments/Post-Petition Payments Breakdown section of the form 

to correctly answer questions about how much interest had been paid in the year to date.

2.9 Account History [Chapter 7 Only] 

All of the Chapter 7 Participants in Round 1 were able to refer to the Account History box on 

the Current Pay and Proposed Forms in order to answer questions about whether and how 

they knew they were currently behind on their mortgage. Many participants specifically 

referenced the “unpaid amounts” information provided in the Account History portion of the 

forms.

2.10 Mortgage Counseling and Assistance [Chapter 7 Only] 

All of the Chapter 7 forms tested included language in the Account History box stating, “If 

You Are Experiencing Financial Difficulty: See back for information about mortgage 

counseling or assistance.” Seven of the Chapter 7 Participants were asked what they would 

do if they were having trouble paying their mortgage. Four of them noted the statement on 

the form saying that more information is provided on the back of the form, while two

participants indicated that they would contact the mortgage company’s customer service 

department. One participant indicated that he would do both. 

2.11 Contact Information for the Mortgage Company 

All participants were able to find the customer service number and some said that they 

would call this number if they needed more information or had any questions, though many 

noted that they would also investigate what information was provided online. Many said they 

would usually call their attorney or trustee, instead of or as well, to get more information on 

the form and their responsibilities.

2.12 Pre-Petition Arrearage [Chapter 13 Only] 

Chapter 13 Participants generally understood that the information presented in the PrePetition Arrearage box reflected payments that they were making to the amount that was 

past due when they filed for bankruptcy. Chapter 13 Participants were generally more 

comfortable with the Proposed Form’s technical language (e.g., “pre-petition arrearage” and 

“post-petition payment”) than the Revised Form’s plain language (e.g., “pre-bankruptcy 

debt” and “payment amount”) and expressed a preference for this technical language.

9 

 

9 One participant without bankruptcy experience did not understand the technical language (i.e., “arrearage”). 

However, borrowers receiving this form would be in Chapter 13 bankruptcy and likely will have experience with 

this technical language, as suggested by these test results.
20

 

2.13 P&I Form Activity [Chapter 13 Only] 

The Chapter 13 P&I Form was identical to the Revised Form except for one difference. The 

Revised Form showed a principal amount of $501.63 due as part of the payment. The P&I 

Form, which was designed to reflect the following month’s statement, showed the principal 

amount paid in the prior month to only be $491.81, resulting in a difference of $9.82 (i.e., 

the P&I Form showed that the borrower had paid less principal than he/she was scheduled 

to the prior month based on the Revised Form). Participants had mixed reactions and 

expressed varying levels of concern. While one participant understood why this difference

occurred and expressed no concern, most participants did not immediately see the

inconsistencies in the two months. However, most participants did note concern over where 

these differences were coming from once the moderator pointed it out to them. Examples of 

participant responses to the difference included:

 “[I] dont know if I would catch it. I might catch it. I’d think that it was odd and maybe 

wait until the next statement.”

 “I would have noticed the difference. Very important because the principal should 

keep going down as you’re paying.”

 “Relates to the Rule of 78. Sometimes you have to pay more interest upfront and 

then it declines later. . . I know this is how it works.”

When asked whom they would contact for an explanation, three participants indicated that 

they would contact the mortgage company and two said they would contact their trustee.

3.1 Form Change Overview 

After Round 1, changes were made to the Chapter 7 and Chapter 13 forms. Images shown 

in the figures in Sections 3.2 through 3.5 are of the Round 2 forms; Round 1 forms can be 

found in Appendix A. 

As a result of Round 1 findings, some or all of the text of the Bankruptcy Notice was bolded 

on both the Chapter 7 and Chapter 13 forms to help participants notice it without being 

prompted. The wording of the message on all forms was also updated for clarity and 

comprehension of some additional information. The Chapter 7 Current Pay Form also 

featured an alternative layout where the Bankruptcy Notice stretched across the entire width 

of the notice, rather than being located in the left corner. 

3.0 Form Changes: Round 1 to Round 2
21

The Payment Amount on the Chapter 7 Current Pay and Chapter 13 Alternate Forms was 

termed the “Current Payment Amount,” consisting of the regular monthly payment plus fees 

and charges. An additional line was added to the Explanation of Payment Amount box to list 

the Current Payment Amount along with the Regular Monthly Payment and Total Unpaid 

Amounts. This was done to facilitate testing how participants would respond to being asked 

to pay an amount that did not include past due amounts. Payment amounts and disclaimers 

were removed from all payment coupons so that participants would rely only on the main

portion of the forms to answer the Round 2 interview questions. 

The Bankruptcy Notices were revised to some degree on all forms. Language advising that 

the periodic statement was not “an attempt to collect a debt against you personally” was 

replaced with language stating that it was “not an attempt to impose personal liability on 

you” to test whether consumers responded better to the new language. Additionally, an 

alternative Bankruptcy Notice stating that the form was required by law was tested to 

determine if this improved participants’ understanding of why they would be receiving the 

form.

Finally, the Important Messages box on the Chapter 13 Alternate Form was revised to 

include a narrative explanation of the pre-petition arrearage box and a message advising 

that the notice might not include all payments sent to a trustee.

The P&I Form was not used in Round 2 because participants engaged in a different activity 

involving a different presentation of principal and interest.
22

3.2 Chapter 7: Round 2 Current Pay Form Changes Compared to Round 1 

Current Pay Form

2

3

4

1 Message realigned

Bankruptcy Message was realigned 

to stretch horizontally across the 

top of the form, instead of being 

located in the upper left corner.

2 Wording updated

“Collect a debt” was changed to 

“impose personal liability.” “Any 

payments you choose to make are 

voluntary” language was added.

3

Current payment 

amount added

In addition to the Regular Monthly 

Payment and the Total Payment 

Amounts, the Current Payment 

Amount was added, which is 

comprised of the Regular Payment 

plus fees. 

4

Payment coupon 

disclaimer 

removed

The payment coupon disclaimer “If 

you filed for bankruptcy and choose 

to make a payment: Make any 

checks payable to Springside 

Mortgage” was removed. 

Chapter 7 Current Pay Form Changes: Round 1 to Round 2

1

5

Payment Amount 

removed

Removed the payment amount 

from the payment coupon.

5
23

3.3 Chapter 7: Round 2 Total Pay Form Changes Compared to Round 1 

Proposed Form 

1

3

1 Bolded font

Bolded the font of the entire 

Bankruptcy Notice.

2 Wording updated

Added phrases “By law, we must 

send it to you,” and “You can 

choose to stop receiving 

statements by writing to us at our 

address below.”

3

Payment coupon 

disclaimer altered

Removed the payment coupon 

disclaimer “If you are currently a 

party in a bankruptcy case and you 

choose to make a voluntary 

payment, detach and return bottom 

remittance portion with your 

payment. Make any checks payable 

to Springside Mortgage.”

Chapter 7 Proposed Form Changes: Round 1 to Round 2

2

4

Payment Amount 

removed

Removed the payment amount 

from the payment coupon.

4
24

3.4 Chapter 13: Round 2 Base Form Changes Compared to Round 1 Proposed 

Form

1

2

1

Changed top 

disclaimer

The top disclaimer was altered to 

inform users that the top amount 

does not include past unpaid 

amounts or pre-petition arrearage 

debt. Trustee information that was 

here previously was relocated to the 

bottom (See Change 6).

2 Bolded Font

Bolded the font of part of the 

Bankruptcy Notice.

3 Wording updated

Disclaimer about how to stop 

receiving notices was added. 

Statement about how the form may 

not be up to date was relocated to the 

bottom (See Change 6).

4

Post-petition 

language added

Post-petition language was added to 

the top box to clarify what these 

payment amounts mean.

Chapter 13 Proposed Form Changes: Round 1 to Round 2

3

7

5

Late fee added

Added late fee for testing purposes.

6

6

Important 

Messages added

An Important Messages box was 

added to consolidate relevant pieces 

of information, such as the disclaimer 

about the bankruptcy plan (relocated 

from Changes 1 & 3), and an 

explanation of partial payments (new 

information; not present in Round 1).

4

5

8

7

Payment coupon 

disclaimer 

removed

Removed the payment coupon 

disclaimer, which stated that users 

should send payments to the trustee 

if their plan requires them to. 

8

Payment amount 

removed

Removed the payment amount from 

the payment coupon.
25

3.5 Chapter 13: Round 2 Alternate Form Changes Compared to Round 1 

Revised Form

1

2

1

Changed top 

disclaimer

The top disclaimer was altered to 

inform users that the top amount 

does not include Pre-Bankruptcy 

Debt. The trustee information that 

was here in Round 1 was relocated 

to the Important Messages box 

(See Change 4).

2 Box added

A box was added around the 

Bankruptcy Notice.

3 Wording updated

Disclaimer about how to stop 

receiving notices was added. 

Statement about how the form may 

not be up to date was relocated to 

the Important Messages box (See 

Change 4).

4

Important 

Messages added

An Important Messages box was 

added to consolidate relevant 

pieces of information, such as the 

disclaimer about the bankruptcy 

plan (relocated from Change 1), the 

disclaimer about how the form may 

not be up to date (relocated from 

Change 3), and an explanation of 

the Past Payments Breakdown 

(new information; not present in 

Round 1).

Chapter 13 Alternate Form Changes: Round 1 to Round 2

3

5

5

Payment coupon 

disclaimer removed

Removed the payment coupon 

disclaimer, which stated that users 

should send payments to the 

trustee if their plan requires them 

to.

4

6

Payment amount 

removed

Removed the payment amount 

from the payment coupon.

6
26

4.1 Forms and Methodology 

Round 2 was held in Fort Lauderdale, Florida. As in Round 1, the Chapter 7 forms presented 

a scenario in which the consumer was behind on mortgage payments. The consumer had 

made a partial payment during the prior billing cycle and had been charged a late fee for not 

making the full payment by the end of the grace period. A series of blind recall questions 

were asked after the participants initially reviewed the form, asking them to recall the form’s 

purpose, what they would do if they received this notice while in bankruptcy, and whether 

the form stated anything about their being in bankruptcy. 

Three Chapter 7 forms were tested in this round: a Current Pay Form, a Total Pay Form, and 

a Combined P&I Form. The Current Pay Form was shown first, followed by the Total Pay Form

and the Combined P&I Form. The forms can be found in Appendix B. 

As shown in the figures in Section 4.2, the Round 2 Chapter 7 forms differed from each 

other in the following ways: 

1) The Bankruptcy Notice on the Current Pay Form stretched across the top of the entire 

form, whereas the Total Pay Form and Combined P&I Form kept the notice confined 

to the upper-left corner. The text included in this notice differed across forms as well, 

with the Current Pay Form stating that “any payments you choose to make are 

voluntary,” and the Total Pay Form and Combined P&I Form stating that “this 

statement is for informational and compliance purposes only. By law, we must send 

it to you.”

10

2) The Current Pay Form had a third dollar amount—the “Current Payment Amount”—in 

the Explanation of Payment Amount box that added the regular monthly payment to 

the total fees and charges. 

3) As in Round 1, the Current Pay Form listed the Payment Amount as only the regular 

monthly payment plus fees and charges, whereas the Total Pay Form listed the 

Payment Amount as the total outstanding amount, including past due amounts.

4) The Combined P&I Form was identical to the Total Pay Form, except that principal 

and interest were combined in a single sum rather than listed as separate line items. 

Participants were asked a limited set of questions to determine whether the 

combined principal and interest disclosure changed their understanding of the form.

 

10 Due to a printing error, the first Chapter 7 participant received a Total Pay Form that included language on 

voluntary payments. The form was corrected for all subsequent participants.

4.0 Round 2
27

In Round 2, the Chapter 13 forms presented a scenario in which the borrower had failed to 

make the prior month’s periodic (post-petition) payment, resulting in a past due amount and 

a late fee. This scenario was used to test whether participants understood that they had a 

past due amount and, if so, whether that amount related solely to post-petition amounts due 

during the bankruptcy case. The Chapter 13 forms in this round showed that the borrower 

had continued to repay the pre-petition arrearage through the trustee. A series of blind recall 

questions were asked after the participants initially reviewed the form, asking them to recall 

the form’s purpose, what they would do if they received this notice while in bankruptcy, and 

whether the form stated anything about their being in bankruptcy. 

Three Chapter 13 forms were tested in this round: a Base Form, an Alternate Form, and a 

Combined P&I Form. The Base Form was shown first, followed by the Alternate Form and the

Combined P&I Form. The forms can be found in Appendix B.

As shown in the figures in Section 4.3, the Round 2 Chapter 13 forms differed from each 

other in the following ways: 

1) The Base Form had a third dollar amount—the “Post-Petition Payment Amount”—in 

the Explanation of Payment Amount box that added the regular monthly payment to 

the total fees and charges. 

2) The Base Form listed the Payment Amount as only the regular monthly payment plus 

fees, whereas the Alternate Form listed the Payment Amount as the total amount

owed post-petition, including past due amounts. As such, the Base Form contained a 

different disclaimer under the payment amount than the Alternate Form. Again, these 

differences tested whether participants would still understand that they were behind 

on the mortgage and the amounts they thought they should pay.

3) The forms referenced the pre-petition arrearage in different ways, with the Base Form

referring to this section as “Pre-Petition Arrearage” and the Alternate Form referring 

to it as “Pre-Bankruptcy Debt (Arrearage).”

4) The Alternate Form included a third section in the Important Messages box 

describing what information was shown in the Pre-Bankruptcy Debt section. 

5) The Combined P&I Form was identical to the Alternate Form, with the exception that

principal and interest were combined in a single sum rather than listed as separate 

line items. 
28

4.2 Form Difference Overview: Chapter 7 

Form Difference Overview

Current Pay Form Total Pay Form P&I Form

1

Message format and 

location changed

2

Third subtotal added

3

Payment amount differed

4

Principal and Interest 

combined

1 Message format and location changed

The Bankruptcy Notice on 

the Current Pay Form (top) 

was a box that extended all 

the way across the top of 

the form, and the Payment 

Amount box was located 

below the Bankruptcy 

Message. On the Total Pay 

Form (bottom), the 

Bankruptcy Notice was on 

the left side of the form.

 
29

2 Third subtotal added

The Current Pay Form listed three subtotal amounts (regular monthly payment, 

current payment amount, and total amount owed; left) in the Explanation of Payment 

Amounts box. The Total Pay Form (right) did not include the current payment amount 

subtotal, which consisted of the regular monthly payment plus fees and charges.

3 Payment amount differed

The Current Pay Form asked participants only for 

the current payment amount, which consisted only 

of the regular monthly payment plus the fees and 

charges, and did not include past unpaid amounts 

(top). 

The Total Pay Form asked participants to pay the 

full $4,089.13 due, which was inclusive of their 

regular monthly payment, total fees and charges, 

and past unpaid amounts (bottom). 
30

4 Principal and interest combined

The Current Pay Form (and Total Pay Form) showed a principal amount of $386.46 

and an interest amount of $1,048.07 (left). The P&I Form showed a combined 

amount of $1,434.53 instead of showing the principal and interest separately (right). 
31

4.3 Form Difference Overview: Chapter 13 

Form Difference Overview

Base Form Alternate Form P&I Form

1

Post-petition payment 

explanation differed

2 Third subtotal added

3 Payment amount differed

4

Pre-Petition Arrearage 

header differed

5

Principal and interest 

combined

1 Post-petition payment explanation differed

The Base Form (left) contained a longer explanation of the pre-petition arrearage 

than the Alternate Form (right); it also explained the payment amount as excluding 

“pre-petition arrearage” instead of “pre-bankruptcy debt.”

6

Important Message box 

content differed

2 Third subtotal added

The Base Form had three subtotals in the Explanation of Payment Amount box 

(left). In the Alternate Form, the post-petition payment amount was removed (right).
32

3 Payment amount differed

The Base Form asked participants to pay the post-petition payment amount of 

$2,129.94, which consisted only of the regular monthly payment plus the fees and 

charges (left). The Alternate Form asked participants to pay $4,069.88, which was 

inclusive of their regular monthly payment, total fees and charges, and past unpaid 

amounts (left). 

4 Pre-Petition Arrearage header differed

The pre-petition arrearage section was referred to 

as “Pre-Petition Arrearage Payments:” in the Base 

Form (top), while the Alternate Form referred to 

the pre-petition arrearage section as “PreBankruptcy Debt (Arrearage).”

5 Principal and interest combined

The Base Form (and Alternate Form) showed a principal amount of $501.63 and an 

interest amount of $1,063.31 (left). The P&I form showed a combined amount of 

$1,564.94 instead of showing the principal and interest separately (right). 
33

6 Important Messages box content differed

The Base Form only had two messages in the Important Messages box (top). The 

Alternate Form added a second message explaining more about what the content in 

the pre-bankruptcy debt box means. 

 

4.4 Participants’ Experience with Mortgages and Bankruptcy 

In Round 2, 14 of 17 participants reported that they had a mortgage when they filed for 

bankruptcy. Two of those participants said that they gave up the house while in (or near) 

bankruptcy, while 12 participants kept their homes through the bankruptcy process.

As in Round 1, many participants expressed positive sentiments towards receiving these 

forms, particularly if they were trying to keep their homes. Some examples of positive 

comments made by respondents included:

 “Had I gotten a form like this when I was going through it, I would have felt better 

about my bank. They were taking an interest to try to show me something to try to 

help me. I found that the banks want to work with you but don’t always do a good job 

communicating that to you. This is a step in the right direction.” — Chapter 7

 “I wish I would have received something like that when I was going through this 

process, that’s for sure.” — Chapter 7

 “I don’t find the notice to be threatening. Going through bankruptcy is a traumatic 

experience. To get a notice that is not threatening or demanding helps a lot. It’s 

pertinent information that is presented not in a threatening way.” — Chapter 13

 
34

4.5 Bankruptcy Notice 

Nine of the 16 participants (three of nine Chapter 7 Participants; six of seven Chapter 13 

Participants11) who were asked about the forms’ purpose said that it was to provide people 

a snapshot or overview of their mortgage status. Fourteen of 17 participants described the 

form as more informational in nature, rather than primarily a request for payment. 

However, participants had difficulty reconciling the Chapter 7 Current Pay and Chapter 13 

P&I Forms’ language, indicating that the form was for “informational purposes only” and was 

“not an attempt to impose personal liability” with the fact that the form otherwise looked like 

a standard mortgage statement (which would typically request a payment). The majority of 

participants said that they had a choice whether to make a payment, but that there would 

be consequences (i.e., potential foreclosure) if they did not pay. Participants appeared to 

draw this conclusion from a mix of past experiences and form information. For example, the 

Chapter 7 Current Pay Form included a statement that the mortgage loan contract may allow 

foreclosure if the contract’s requirements were not met. But even those Chapter 7 

Participants who were not able to find this statement on the form still articulated the 

consequences of failing to pay. 

In addition, several Chapter 13 Participants had a negative reaction to the forms’ 

foreclosure language. For example, one participant said, “If I’m in bankruptcy, I’m trying to 

help myself and get my finances together. And if I’m going to stay current on my loan, stop 

threatening me with foreclosure.”

During the blind recall questions, some participants did not recall seeing anything about the 

form stating they were in bankruptcy; they were also not sure if the form referenced it. 

Participants did not find any iteration of the bankruptcy message threatening, and all 

understood what would happen if they failed to make a payment. When asked if they had a 

choice about making a payment, many said that one always has a choice but the choices 

are to either make a payment or face foreclosure. These participants said:

 “It doesn’t dissolve your responsibility on your mortgage. Helpful information.” 

— Chapter 7

 “Always have a choice to not pay. The consequence would be that they’d foreclose if 

contract requirements aren’t met. That part is pretty clear. It gives you a choice and 

tells you the consequences.” — Chapter 7

 “I can. . . continue paying whether the property was included in the bankruptcy or not.

They’re voluntary but they still have the ability to foreclose if I don’t meet their 

requirements. . . .They’re saying you can pay, or not.” — Chapter 7

 

11 One Chapter 7 Participant was not asked about the form’s purpose.
35

 “They can decide that they will let their house go back or make the payment. It’s their 

choice as to whether or not they would keep their house. If they do not make 

payments, they would foreclose on their home.” — Chapter 13

Only a few participants indicated a preference for the Chapter 7 Total Pay and Chapter 13 

Base Forms’ bankruptcy message (which stated that the servicer must send the statement 

“by law”). Some noted that the wording “Bankruptcy Message” on the Chapter 7 Current Pay

Form (which did not include the “by law” language) was friendlier than “Bankruptcy Notice”

on the Total Pay Form. A few participants noted that the content of the Chapter 13 Base 

Form’s “by law” language sounded like a required legal disclaimer and that this version of 

the notice failed to explicitly mention that payments were voluntary.

All participants were asked what they could do if they wanted to stop receiving the 

statements. Five of the seven Chapter 7 Participants who responded to the question 

indicated that they would write to the servicer, Springside Mortgage; the remaining two said 

that they would contact Springside but did not specify that they would do so in writing. 

However, Chapter 13 Participants provided a much wider range of answers to this question. 

Two Chapter 13 Participants said they would call their attorney; one said there was nothing 

that they could do; one responded that the notice did not say what could be done; one said 

they would want the statements; one did not know what they would do; and only one 

indicated that they would write to Springside.

When asked where they should send a payment, five Chapter 13 Participants responded

that they would send it to Springside Mortgage, and two said they would send it to the 

trustee. When asked who they would contact if they had questions about where to send their 

payment, five participants said they would contact Springside Mortgage, and the remaining 

participants said they would contact an attorney or their trustee, or search online for more 

information.

 

4.6 General Account Information

All 10 Chapter 7 Participants correctly identified the interest rate as 4.75% and correctly 

identified the outstanding principal of the mortgage. Nine of 10 correctly identified the fact 

that they would be charged a pre-payment penalty for paying down their mortgage early.

Chapter 13 Participants were not asked these questions due to time constraints and the 

fact that participants in Round 1 and the 2012 testing readily understood these disclosures. 

4.7 Current Payment Due and Due Date

In this round, Chapter 7 Participants largely looked to the Explanation of Payment Amount 

box to figure out how much they owed in a particular month, although at least a few 

participants began by looking at the payment stub and then had to look elsewhere when 

they saw that the stub was blank. A few participants noted confusion over how many 

subtotals were listed on the first (Current Pay) form (i.e., regular, current, and total). Some 
36

assumed that these were different payment options and had questions about the impact of 

paying each dollar amount on their loan status. When reviewing the Current Pay Form, most 

Chapter 7 Participants said they would pay $1,829.71 (the amount listed in the Payment 

Amount box), but others said they would pay $1,669.71 (the regular monthly payment), and 

one would pay $4,089.13 (the total outstanding amount). However, despite the different 

subtotals, some participants noted that having all of these dollar amounts listed was 

beneficial because they thought it offered them guidance in determining what payment 

amount might work for the mortgage company and keep them in their homes longer. It is 

also possible that the horizontal alignment of the Bankruptcy Message caused participants 

to miss the payment amount in the Payment Amount box, which might be why they referred 

to the Explanation of Payment Amounts box.12 When Chapter 7 Participants were shown the 

second (Total Pay) form, which labeled $4,089.13 as both the “Payment Amount” and “Total 

Payment Amount” (as opposed to the Alternate form, which labeled this number as “Total 

Amount Owed”), all 10 participants indicated that they were being asked to pay $4,089.13

this month.

Chapter 13 Participants had lower comprehension for the Explanation of Payment Amounts, 

with some stating that Springside was asking them to pay the full $4,069.88, and one 

believing that the form was asking for a payment of $336.43 (the amount of the partial 

payment Springside received during the previous month). This might ultimately stem from 

overall confusion regarding the difference between pre-petition and post-petition payments. 

Additionally, some noted confusion over the disclaimer (that this amount did not include prebankruptcy debt), which also might have been due to participants not understanding the 

difference between how the forms presented the pre- and post-bankruptcy debts. 

Similar to Chapter 7 Participants, Chapter 13 Participants also noted that there were many 

different subtotals on the form that could be interpreted as how much they owe to 

Springside (regular monthly post-petition, current monthly post-petition, total amount postpetition, amount received from trustee last month, and current balance of pre-petition 

arrearage). One participant thought that the “Past Unpaid Amounts (not including 

arrearage)” was confusing because arrearage in fact means past unpaid amounts. 

As noted above, the Round 2 forms left the payment amount off of the payment coupon. The 

blank payment coupon confused a number of Chapter 7 Participants, as some looked to the 

coupon to determine how much they owed. The missing information, in conjunction with 

 

12 Many participants in this round noted that the Current Pay Form’s format was a bit confusing and they found 

themselves having to look through multiple places on the form to find the information they needed. They 

expressed a preference for forms with information that read left-to-right and, therefore, the adjusted alignment 

of the form might have caused increased confusion on how the separate pieces of information related to one 

another. 
37

confusion surrounding the voluntary nature of payments, led some to believe that they were 

not required to pay anything at this time and others to be confused about what their amount 

due was. 

Chapter 13 Participants did not raise the payment coupon as a major issue of confusion; the 

Chapter 13 forms contained more information than the Chapter 7 forms did, and the 

Chapter 13 interviews spent more time focused on other aspects of the notice.

As in Round 1, a few Chapter 7 and Chapter 13 Participants hesitated or expressed 

confusion when asked when their next payment was due. As discussed above, some of this 

confusion may have stemmed from the fact that the Payment Date (4/1/2015) on the 

tested forms was before the testing date (July 2015), while a mortgage statement would 

normally list a due date in the future.

4.8 Transaction Activity and Past Payments 

Overall, all participants were able to use the Transaction Activity and Past Payments 

Breakdown sections of the forms to locate information on fees and past payments.

All Chapter 7 Participants who were asked about fees were able to correctly identify fees 

they had been charged and the reason for the charge. Specific questions on the partial 

payment disclaimer (“Any partial payments listed here are not applied to your mortgage, but 

instead are held in a separate suspense account.”) were only asked of consumers regarding 

the first form they saw during the session, the Current Pay Form. Seven of the 10 Chapter 7 

Participants were able to locate and correctly interpret the partial payment disclaimer, which 

informed participants that partial payments are not applied to the mortgage balance, but are 

instead held in a separate suspense account. Two of the 10 participants located and read 

the statement, but expressed confusion about the meaning of the disclaimer. The remaining 

Chapter 7 Participant did not appear to locate the disclaimer or understand that the 

payment was being held in suspense. 

On the Chapter 13 forms, five of seven participants were correctly able to identify the fees 

they had been charged and the reason for the charge. Six of the seven Chapter 13 

Participants were able to use the Transaction Activity section of the forms to correctly 

identify the amounts and dates of previous payments that had been made. 

Although the Chapter 13 Alternate Form had the same information about partial payments 

as the Base Form, participants had a harder time finding it on the Alternate Form because it 

was not prominently displayed in the Important Messages box but was instead included at 

the end of a narrative statement explaining the Past Payments Breakdown. Nonetheless, of 

the participants who were able to locate it, most were able to understand its content.

 
38

4.9 Account History [Chapter 7 Only]

Nine of the 10 Chapter 7 Participants in Round 2 were able to correctly identify that they 

were behind on their mortgage and that, in order to bring their account entirely up to date,

they would need to pay $4,089.13 (one did not respond to the question). It is difficult to 

determine whether they used specific information in the Account History box to answer 

these questions; three of the participants specifically referenced the “unpaid amounts”

language found in the Account History box, but others indicated that they calculated these 

answers or used the Explanation of Payments box to respond. However, this information as 

a whole was successfully communicated to the participants by the form.

4.10 Information on Mortgage Counseling and Assistance [Chapter 7 Only] 

All of the Chapter 7 forms tested included language in the Account History box stating, “If 

You Are Experiencing Financial Difficulty: See back for information about mortgage 

counseling or assistance.” Eight of the 10 Chapter 7 Participants were asked what they 

would do if they were having trouble paying their mortgage, and seven noted the statement 

on the form saying that more information on this was provided on the back of the form. The 

remaining participants described looking for other information online.

 

4.11 Pre-Petition Arrearage [Chapter 13 Only]

Comprehension for all pre-petition arrearage information was low across versions of the 

Chapter 13 forms, largely stemming from the arrearage language on all forms. Many 

participants were unsure what the term “arrearage” meant, or did not understand that preand post-petition meant before and after they filed for bankruptcy. Some participants 

incorrectly read arrearage as an arrangement and inferred that these payments reflected a 

negotiated, arranged payment plan with the servicer under their bankruptcy plan. As such, 

comprehension of the content provided in the pre-petition arrearage box was low—only a few 

participants were able to articulate what this information was and that it did not relate to the 

payment amount included in the Explanation of Payment Amount box at the top of the form.

It is worth noting that the Chapter 13 forms tested in Round 2 presented a more complex 

payment history than the Round 1 forms. For example, the Round 1 forms showed that the 

hypothetical borrower made both a full pre-petition and a full post-petition payment the prior 

month, while the Round 2 forms showed the borrower as delinquent on post-petition 

payments but having made a timely pre-petition payment. This scenario might have made it 

difficult for the Round 2 participants to distinguish between the two categories of payments.

 

4.12 Important Messages [Chapter 13 Only]

The Chapter 13 forms also included a message that the statement showed payments 

received from the debtor and the trustee, that it might not show payments recently sent to 

the trustee, and that it therefore might not be consistent with the trustee’s records. This 
39

statement was generally well-received and understood. Comments from participants on this 

section included:

 “By looking at the statement, the payment you may have sent yesterday may not 

have been updated yet. Their records are different from the trustee’s. That’s very 

helpful. It allows you to know that the statement comes out in a timely manner but 

you will not be able to see everything on there because the time that the statement 

was sent out.”

 “If you made a recent payment, they may not have gotten it so that record may not be 

current so the balance could be lower.”

 “This statement may not include payments that you’ve sent to the trustee lately. As 

long as I know I’ve got a trustee dealing with it, I wouldn’t worry about it.”

 “Yes, this is helpful. Once I get this statement, I’m going to compare to what my 

records show and to what the trustee shows and hopefully it all balances out. If not, 

it’ll provide room for discussion.”

 “This is helpful; it lets me know to look over it and [if] I don’t agree with what is there 

to contact the trustee.”

4.13 Contact Information for the Mortgage Company 

When Chapter 7 Participants were asked what they would do if they wanted more 

information on the mortgage, nine of the 10 said they would contact the servicer, Springside 

Mortgage, with many of them referencing the customer service number listed on the form. 

When Chapter 13 Participants were asked what they would do if they had questions on 

where to send payments, or if they believed they had made all their payments, most 

indicated that they would contact Springside Mortgage as well. Overall, no participants 

expressed concern about contacting the mortgage servicer with questions or indicated that 

they would not be able to find contact information.

4.14 Combined Principal and Interest Disclosure 

Chapter 7 and Chapter 13 Participants reviewed a version of the form that combined 

principal and interest into a single, lump sum figure in the Payment Amount and Past 

Payment Breakdown sections. Fourteen of 17 participants (eight of 10 Chapter 7 

Participants, six of seven Chapter 13 Participants) preferred to see principal and interest as 

separate figures. Some felt the combined information was streamlined, and very few 

inferred that the mortgage company was intentionally withholding information from them. 

Nonetheless, participants said that the combined amount did not allow them to determine 

how they were progressing on their principal repayments and many said that it would lead 

individuals to believe that the bulk (or at least half) of their payments were going to 

principal, when in this testing scenario the vast majority of the monthly payment would go 
40

toward interest. This appeared to be important information for participants, as a few directly 

said that they currently look to see how much they’re paying in interest and toward their 

principal when they look at their actual monthly statements. Further, combining the principal 

and interest into one figure led a number of participants to say that they would have to call 

the mortgage company to find out more details. Participants made comments such as: 

 “I personally prefer it to be split out. Combined is less useful. It makes you think that 

[the principal amount] is more than you should when it’s combined.” — Chapter 7

 “I always like separate. Now you’re seeing that you’re paying more in interest than in 

principal—you’re paying nothing towards your house. Yes, that makes a difference. 

[Combined], you have no clue.” — Chapter 7 

 “They’re being more informational by giving a better explanation. If they’re lumped 

together, you might think that they’re putting $1,000 down to the principal. You 

wouldn’t know. It’s not nefarious, as long as they show you a statement at the end of 

the year that shows you everything, but I would like to see a running total each 

month.” — Chapter 7

 “[I] like it broken out. On the combined one, it has it together. If I don’t know what my 

principal is, how do I know how much I pay in interest?” — Chapter 13

 “[I] prefer it separated. The separated one would make it so you don’t have to call 

and see what each one is individually.” — Chapter 13

5.1 Form Change Overview 

After Round 2, changes were made to the Chapter 7 and Chapter 13 forms. Images shown 

in the figures in Sections 5.2 through 5.4 are of the Round 3 forms; Round 2 forms can be 

found in Appendix B.

As a result of Round 2 findings, some of the text of the Bankruptcy Notice was unbolded on 

both the Chapter 7 and Chapter 13 forms in hopes of distinguishing some key information 

from the remainder of the message. The horizontal layout of the Bankruptcy Message on the 

Chapter 7 Current Pay Form was eliminated in part because blind recall for the bankruptcy 

message when it was at the top was lower than expected. The wording of the message on all 

forms was further updated to test for clarity and comprehension of some additional 

information. 

The arrearage box on the Chapter 13 forms was removed from the first form tested, and 

then added at the bottom of the form in the second and third forms tested along with 

5.0 Form Changes: Round 2 to Round 3
41

additional explanatory text. Additionally, all Chapter 13 forms added a parenthetical in the 

Explanation of Payment Amount box disclosing the date (8/1/2015) on which the borrower 

became delinquent on post-petition payments. Only one round-over-round comparison is 

being presented for Chapter 13. This is because most of the Round 3 testing focused on 

differences between the Round 3 Chapter 13 forms. 
42

5.2 Chapter 7: Round 3 Total Pay Form Changes Compared to Round 2 Total 

Pay Form*

1

2

1

Changed payment 

date

The payment date was altered to 

better reflect the dates of testing.

2 Formatting altered

Parts of the message were 

unbolded. The message was also 

split into three separate 

paragraphs instead of just one.

3

Liability clause 

added

The “personal liability” clause that 

was on the alternate version of the 

Round 2 forms was added to the 

Round 3 Total Pay form.

4

Account History 

wording changed

The wording of the final bullet in 

the Account History box was altered 

slightly. It contains the same 

information, but in Round 3 is one 

sentence.

Chapter 7 Total Pay Form Changes: Round 2 to Round 3

3

5

5

Payment amount 

added

Added the payment amount back to 

the payment coupon. 

4

*NOTE: Only two round-over-round 

comparisons are being presented 

for Round 3, even though Round 3 

included a third form, the 

Delinquency Disclosure Form. This 

is because the Delinquency 

Disclosure Form was the same as 

the Round 3 Total Pay Form, 

except that it included additional 

delinquency information.
43

5.3 Chapter 7: Round 3 Current Pay Form Changes Compared to Round 2 

Current Pay Form

1

2

1 Message realigned

Bankruptcy Message was realigned 

to its original position instead of 

being stretched horizontally across 

the top of the form. 

2

Payment 

explanation added

An explanation of the total balance 

was added to help explain what 

was included in that number.

3

Account History 

wording changed

The wording of the final bullet in 

the Account History box was altered 

slightly. It contains the same 

information, but in Round 3 is one 

sentence. 

4

Payment coupon 

disclosure added

The payment disclosure was readded to the payment coupon.

Chapter 7 Current Pay Form Changes: Round 2 to Round 3

3

4
44

5.4 Chapter 13: Round 3 Form Changes*

1

2

1

Moved top 

disclaimer

The top disclaimer about the payment 

amount not including pre-bankruptcy 

debt was relocated to the PostPetition Payment box to better 

facilitate understanding.

2 Formatting altered

The statement about how to stop 

receiving notices was moved to its 

own paragraph at the end. 

3 Boxes realigned

The Important Messages and the PrePetition Arrearage box were switched 

to allow inclusion of more information 

and to better facilitate understanding 

by separating the Pre-Petition 

Arrearage information from the other 

information about past payments. 

4 Header changed

The Pre-Petition header was changed 

to include more explanatory 

information.

Chapter 13 Form Changes: Round 2 Base to Round 3 Arrearage

3 5

Total Claim 

Amount added

A fourth amount was added to the 

Pre-Petition Payment box.

6 Explanation added

Explanatory text was added to the 

Pre-Petition Arrearage box to explain 

more about those payments. 

5

7

Payment coupon 

disclosure added

The payment disclosure was re-added 

to the payment coupon. 

4

6

7

*NOTE: Only one round-over-round 

comparison is being presented for 

Round 3. This is because most of 

the Round 3 testing focused on 

differences between the Round 3 

Chapter 13 forms; not as much 

interest was given in comparing 

Round 2 to Round 3 forms. The 

comparison given is between the 

Round 2 Base Form (the first form 

tested in that round) and the Round 

3 Arrearage Form (the second form 

tested in that round). 
45

6.1 Forms and Methodology 

Round 3 was held in Chicago, Illinois. As in Rounds 1 and 2, the Chapter 7 forms presented 

a scenario in which the consumer was behind on mortgage payments. The consumer had 

made a partial payment during the prior billing cycle and had been charged a late fee for not 

making the full payment by the end of the grace period. A series of blind recall questions 

were asked after the participants initially reviewed the form, asking them to recall the form’s 

purpose, what they would do if they received this notice while in bankruptcy, and whether 

the form stated anything about their being in bankruptcy.

Three Chapter 7 forms were tested: a Total Pay Form, a Current Pay Form, and a 

Delinquency Disclosure form. The Total Pay Form was shown first, followed by the Current

Pay Form and the Delinquency Disclosure form. The forms can be found in Appendix C.

As shown in the figures in Section 6.2, the Round 3 Chapter 7 forms differed from each 

other in the following ways:

1) The Total Pay Form listed the Payment Amount as the total amount outstanding 

(including past due amounts), while the Current Pay Form listed the Payment Amount 

as only the regular monthly payment. Similar to Rounds 1 and 2, the Current Pay 

Form tested whether participants understood that they were behind on the mortgage 

even if the Payment Amount included only the regular monthly payment, but not any 

past unpaid amounts. 

2) The Current Pay Form added a statement about payments being voluntary to the 

Bankruptcy Message that the Total Pay Form did not have. 

3) The Explanation of Payment amount box on the Current Pay Form referred to the 

Total Payment Amount as the Total Balance and also added a parenthetical 

specifying what that amount included (Regular + Fees + Past Unpaid). 

4) The Total Pay Form had a payment amount on the payment coupon while the Current

Pay Form did not. 

5) The Delinquency Disclosure form was similar to the Total Pay Form, but also had the 

following additional information: 

a. A disclaimer about when payments had to be received to avoid a late fee, and 

how much this late fee would be, was included at the top of the form. The 

same disclaimer was also added to the payment coupon. 

b. The word “due” was added to the top so that the Payment Date became 

“Payment Due Date” and the Payment Amount became “Amount Due.”

c. The Account History section was renamed to Delinquency Information. 

6.0 Round 3
46

d. The Delinquency Information section had additional information, such as how 

many days the borrower has been delinquent and what could happen if they 

did not bring their loan current (e.g., fees and foreclosure). 

In Round 3, eye-tracking glasses were used to capture participants’ eye movements when 

interacting with the Chapter 7 forms. Eye movement data provides an additional level of 

insight into participants’ experience with the forms. Eye movements consist of fixations, 

which occur when the eye is relatively still, and saccades, which are the rapid movements 

between the fixations; a fixation is very short, typically 0.1 to 0.5 seconds in duration. Gaze 

plots are then used to visualize the eye-movement fixations captured by the glasses. Gaze 

plots visualize fixations from individual participants. The numbers on the gaze plot circles 

correspond to the order in which the fixations occurred. The size of the circle on a gaze plot 

corresponds to the length of the fixation duration; larger circles represent fixations with 

longer durations. The lines on a gaze plot connect the order in which the fixations occurred; 

longer lines between fixations typically signify a participant who scanned, while shorter lines 

typically signify a participant who read the material closely. Chapter 7 form eye tracking data 

for Round 3 can be found in Appendix E.

 

The Chapter 13 forms presented a scenario in which the borrower made a partial payment 

of $500 on the prior month’s periodic (post-petition) payment, thus resulting in a past due 

amount and a late fee. Additionally, the first form tested (the No Arrearage Form) did not 

include any pre-petition arrearage box and so did not disclose the arrearage’s starting or 

current balance. This scenario was used to test whether participants understood that they 

had a past due amount and, if so, whether that amount related solely to post-petition

amounts due during the bankruptcy case. This also allowed us to examine whether 

participants’ confusion regarding the Chapter 13 forms in previous rounds was at least in 

part caused by the inclusion of any pre-petition arrearage information (a scenario not all 

participants had personal experience with) or other aspects of the form. The Chapter 13 

forms in this round showed that the borrower had continued to repay the pre-petition 

arrearage through the trustee. A series of blind recall questions were asked after the 

participants initially reviewed the form, asking them to recall the form’s purpose, what they 

would do if they received this notice while in bankruptcy, and whether the form stated

anything about their being in bankruptcy. 

 

Three Chapter 13 forms were tested in this round: a No Arrearage Form, an Arrearage Form, 

and an Alternate Arrearage Form. The No Arrearage Form was shown first, followed by the 

Arrearage Form and the Alternate Arrearage Form. The forms can be found in Appendix C.

As shown in the figures in Section 6.3, the Round 3 Chapter 13 forms differed from each 

other in the following ways:
47

1) The No Arrearage Form did not have any information about the pre-bankruptcy debt 

(the amount the recipient was behind on their mortgage before filing). The Arrearage 

Form added an arrearage box, called “Summary of Amounts Past Due before 

Bankruptcy Filing,” which contained information about the pre-bankruptcy debt, 

including the total claim amount, the amount paid in the previous month, the total 

paid so far since filing for bankruptcy, and the current balance still due on the prebankruptcy debt. It also included a narrative explanation of the pre-petition 

arrearage, stating that the pre-petition arrearage box showed amounts that were past 

due when the individual filed for bankruptcy and might also include other allowed 

amounts.

2) The Alternate Arrearage Form was very similar to the original Arrearage Form, but it

added a clause to the narrative explanation stating that the amounts in this box were 

separate from their regular monthly mortgage payments.

 

By Round 3 of testing, most overarching issues had been identified and at least partially 

addressed. Therefore, questions regarding certain disclosures that participants readily 

understood in the first two rounds (as well as in the 2012 testing), such as the general 

account information, were omitted to allow additional time to probe certain bankruptcyspecific form issues, such as the language of the Bankruptcy Notices and the placement 

and content of the arrearage box on the Chapter 13 form. 

 
48

6.2 Form Difference Overview: Chapter 7

Form Difference Overview

Total Pay Form Current Pay Form Delinq. Disclosure Form

1 Payment amount differed

2 “Voluntary” statement 

added

3 Payment amount 

explanation added

4 Payment amount removed 

from payment coupon

5 Additional disclosures 

added

1 Payment amount differed

The Total Pay Form asked participants to pay the 

full $3,839.13 due, which was inclusive of their 

regular monthly payment, total fees and charges, 

and past unpaid amounts (top). The Current Pay 

Form asked participants only for the regular 

monthly payment amount of $1,669.71 (bottom). 

2 Voluntary statement added The Total Pay Form (left) 

stated that it was “not an 

attempt to impose 

personal liability,” while 

the Current Pay Form 

(right) stated that it was 

“not an attempt to collect 

a debt.” The Current Pay 

Form also contained the 

phrase “Any payments 

you choose to make are 

voluntary.”
49

3 Payment amount explanation added

4 Payment amount removed from payment coupon

The payment amount was 

included on the payment 

coupon in the Total Pay 

Form (left), but not on the 

Current Pay Form (right).

5 Additional disclosures added

The Delinquency Disclosure Form had a disclaimer 

at the top and on the payment coupon (not pictured) 

informing participants when a late fee would be 

incurred, and how much the fee would be.

The Current Pay Form (right) added a parenthetical statement explaining that the 

total balance is equal to the above listed regular payment, fees, and past unpaid 

amounts. 

The Account History box was changed to a 

Delinquency Information box, which contained two 

pieces of additional information: 

a) That failure to bring their loan current could 

result in fees and foreclosure.

b) They are 51 days delinquent on their mortgage 

loan.

a

b
50

6.3 Form Difference Overview: Chapter 13

Chapter 13 Round 3 Form Difference Overview

No Arrearage Form Arrearage Form Alternate Arrearage Form

1

Arrearage box added

2

Arrearage box content 

altered

1 Arrearage box added

The No Arrearage Form did not contain any arrearage information or box. The Arrearage 

Form featured the addition of the arrearage information (above) that contained the total 

claim amount, what was paid last month, the total paid so far in bankruptcy, and the 

current balance. The box also contained some explanatory text.

2 Arrearage box content altered

The Alternate Arrearage Form 

(bottom) added a sentence stating, 

“These are separate from your 

regular monthly mortgage 

payment.”
51

6.4 Participants’ Experience with Mortgages and Bankruptcy 

In Round 3, 12 participants reported that they had a mortgage when they filed for 

bankruptcy. Four of those participants said that they gave up the house while in (or near) 

their bankruptcy, while eight participants kept their homes through the bankruptcy process.

Virtually all participants, including both Chapter 7 Participants and Chapter 13 Participants, 

expressed positive sentiments towards receiving these forms, particularly if they were trying 

to keep their homes. Some examples of these positive comments included:

 “If you’re in bankruptcy, you’re probably trying to take yourself back to a place where 

you’re out of debt or out of a situation where you can’t make your payments. I would 

appreciate these statements and would want to know that even if I wasn’t current, I 

was aware of what was going on.” — Chapter 7

 “Definitely [would rather receive them]. You know what your bottom line is and you 

know what the amount due is and how to exercise your options.” — Chapter 13

 “[I would rather] receive them. This lets me know which way I’m heading.” 

— Chapter 13

Only a few participants indicated that they would rather not receive the forms themselves, or 

would not want to receive them frequently: 

 “[I] don’t think they would need to see them every month; maybe on a quarterly level 

would be very helpful.” — Chapter 7

 “Send [the forms] to my attorney, make sure that there’s no confusion or 

miscommunication.” — Chapter 13

6.5 Bankruptcy Notice 

Four of seven Chapter 7 Participants generally recalled (while the form was turned over) that 

the form included something about their being in bankruptcy; however, few remembered the 

specific details. Four of seven Chapter 7 Participants said that they preferred the Current 

Pay Form’s bankruptcy statement over the Total Pay Form’s statement when comparing the 

two side by side because of the plain language on the Current Pay Form indicating that the 

form was “not an attempt to collect a debt” and that any payments were “voluntary.”

Participants’ understanding of some forms’ language about “voluntary” payments evolved 

across the three rounds. In Round 3, three of seven Chapter 7 Participants reviewing the 

Current Pay Form interpreted the “voluntary” language as meaning that they could negotiate 

with the servicer for how much they could pay, or that they could make partial payments 

without penalty. Other participants interpreted the “voluntary” language to mean that the 

servicer was telling them they could pay extra funds if they would like to pay off their 

mortgage faster. Those who did understand the intended meaning of the “voluntary”
52

language—i.e., that the servicer could not compel a payment from the participant—were still 

confused as to how payments could be “voluntary” if they needed to make the payments to 

keep the home; these participants said that it seemed like a legal requirement to include 

this language on the notice. Participants’ responses to the “voluntary” language included:

 “We’re not demanding a payment. We hope you pay. This isn’t a final opportunity to 

save yourself; it softens the letter.”

 “You could ignore it if you wanted to stop making payments and start living in a tent.”

Participants’ differing reactions to the “voluntary” language appeared to affect which version 

of the Bankruptcy Message they preferred. Those who preferred the Current Pay Form’s 

Bankruptcy Message generally responded positively to its “voluntary” language. Conversely, 

those who preferred the Total Pay Form’s Bankruptcy Message—which did not reference 

“voluntary” payments—did so because they found the Current Pay Form’s “voluntary”

language to be confusing. Overall, as in prior rounds, many participants had different 

interpretations of the “voluntary” language, and it swayed their preferences for a particular 

form’s Bankruptcy Message. 

While some participants appeared to understand the “impose personal liability” language on 

the Total Pay Form, most still expressed some confusion over it. Participants experiencing 

confusion expressed uncertainty about its meaning, that it sounded too much like legalese, 

or that they thought other people would have problems with this statement. Examples of 

participants’ statements about this language include:

 “You’re not personally liable—the bankruptcy court would have final say in what’s 

going on.” — Chapter 7 

 “This isn’t a shakedown, it’s just a personal way to understand what’s going on, but 

they want their money.” — Chapter 7

 “[The liability sentence] is kind of confusing. Not an attempt to say that I’m liable to 

pay down the loan.” — Chapter 7

Chapter 7 Participants generally comprehended the phrase “not an attempt to collect a 

debt,” offering more straightforward interpretations:

 “They can’t make you pay.” — Chapter 7

 “They’re not making me pay my debt.” — Chapter 7

 “They’re not looking for money, but they attached a payment stub anyways in case 

you wanted to pay them.” — Chapter 7

However, two participants did still express some confusion:

 “Not sure. They wouldn’t send it to you if they didn’t want a check in return. Maybe 

they don’t want you thinking that they’re sending you a ‘settle up’ amount in order to 
53

avoid going to jail. It is an attempt to collect a debt, but they’re not turning it over to 

a debt collector. This is not the final attempt to get the money from you. Just 

informational advisory.” — Chapter 7

 “It’s a monthly payment, but they’re not asking for the total amount. . . This one 

would almost be a second notice if I missed that payment.” — Chapter 7

For Chapter 13 Participants, the modified language about the bankruptcy plan (“If your 

bankruptcy plan requires you to send your regular monthly mortgage payment to the 

Trustee, you should pay the Trustee instead of us.”) helped comprehension of this form with 

five of six participants who were specifically asked recalling this information while the form 

was turned over. Participants said:

 “It says that if your plan requires you to send the payment to the trustee, then don’t 

send [it] to them. This means that you shouldn’t send it to Springside.”

 “It says that if your bankruptcy plan requires your payments to be sent to the trustee, 

then do that. If they told you to do it, then do it.”

 “I’d follow whatever the initial layout [of the plan] was, because that’s what was 

agreed to.”

6.6 General Account Information 

Because of high comprehension related to general account information in Rounds 1 and 2, 

as well as in the 2012 testing, questions regarding the interest rate, outstanding principal, 

and prepayment penalty were omitted to allow additional time to probe certain bankruptcyspecific form issues, such as the language of the Bankruptcy Notices and the placement 

and content of the arrearage box on the Chapter 13 form.

6.7 Current Payment Due and Due Date 

Nearly all (six out of seven) Chapter 7 Participants were able to identify the correct Payment 

Date on each of the forms when asked. Most Chapter 7 Participants correctly said that the 

Total Pay Form and Delinquency Disclosures Form were asking them to pay $3,839.13. 

However, as in Round 1 and 2, participants had varying responses about how much the 

Current Pay Form was asking them to pay: two cited the $1,669.71 amount listed in the 

Payment Amount box, two noted the $3,839.13 amount listed under the Explanation of 

Payment Amount, and three said it was unclear to them how much they were being asked to 

pay that month.

The Chapter 7 Delinquency Disclosure Form used the phrases “Amount Due” and “Due 

Date” instead of “Payment Amount” and “Payment Date.” All seven Chapter 7 Participants 

expressed a preference for the language used in the Delinquency Disclosure Form (“Amount 

Due” and “Due Date” versus “Payment Date” and “Payment Amount”) because of the 

inclusion of the word “due.” Participants noted that “due” made it clearer that this was an 
54

upcoming payment, not a historical one (this theme built on comments made in Round 1 of 

testing). Some noted that they usually scan documents quickly for the word “due,” so the 

word would be a helpful addition to them. These participants said:

 “I like having the due date; they highlight it on regular bills.”

 “Due means that I have to get it to them by that date. It’s more powerful. This is 

better because it must be in their hands by that date.”

 “The word due, when you’re paying people back, there’s a commonality in that word.”

 “Due date. It needs to be clear for me. It would pop out for me.”

Nearly all Chapter 13 Participants were able to identify the correct Payment Date on each of 

the Round 3 forms when asked. Most Chapter 13 Participants understood that they were 

being asked to pay $3,569.88 on the No Arrearage Form. However, consistent with the 

findings regarding the Chapter 7 Current Pay Form, some Chapter 13 Participants expressed 

confusion regarding how much the Alternate Arrearage Form was asking them to pay: half 

the participants cited the $1,939.94 amount listed in the Payment Amount box, while the 

other half said that they owed a total of $3,469.88.

In addition, some Chapter 13 Participants wrongly concluded that their post-petition 

payments included amounts that were past due when they filed for bankruptcy. This seemed 

to be because they saw “unpaid amount” in the post-petition payments and forgot that 

those amounts in that box were only for post-petition payments. Most participants were able 

to discern the difference between the amount they were being asked to pay in the current 

month and the Pre-Petition Arrearage information at the bottom. Only one participant did not 

comprehend that the boxes were referring to separate payments. Any confusion about this 

point did not appear to interfere with most participants’ understanding of how much they 

should pay.

6.8 Transaction Activity and Past Payments 

Overall, participants were able to use the Transaction Activity and Past Payments Breakdown

sections of both versions of the Chapter 7 form to locate information on fees and past 

payments. All of the Chapter 7 Participants who were asked whether they had been charged 

fees and for what were able to correctly answer those questions.

All but one Chapter 7 Participant was also able to locate and correctly interpret the partial 

payment disclaimer, which informed participants that partial payments are not applied to 

the mortgage balance, but are instead held in a separate suspense account. The remaining

participant did not notice this statement and, as a result, was unclear on how payments 

were being applied. 

Some Chapter 13 Participants were asked whether the amount they were being requested 

to pay included any fees. The majority of these participants (all but one) identified that their 
55

payment amount included past fees. When asked whether this amount included payments 

that were missed during the bankruptcy case, the majority correctly identified that the 

Payment Amount included unpaid amounts.

In this round, Chapter 13 Participants were also asked when they had failed to make a 

payment due during bankruptcy. Most participants correctly said that they had failed to 

make the full payment that was due on August 1. The different language describing this date 

on the No Arrearage Form (“past due since 08/01/2015”) and the Alternate Arrearage Form 

(“dating from 08/01/2015”) did not appear to affect participants’ understanding of when 

they failed to make a payment. 

The Chapter 13 Alternate Arrearage Form separated the partial payments into separate 

suspense accounts (one for pre-petition and one for post-petition partial payments). Some 

participants easily understood why and this seemed to facilitate comprehension of the 

difference between the pre-petition and post-petition payments in the Transaction Activity

box. However, some did not grasp that these were separate accounts. Some participants 

also seemed confused as to whether the money was paid before or after bankruptcy, or if it 

was going into pre- and post-bankruptcy debt suspense accounts. Overall, even with some 

confusion, participants understood that the amounts listed here were being held in 

suspense. 

 

6.9 Account History [Chapter 7 Only] 

Comprehension of the Account History information was high in Round 3, with the majority of 

participants correctly identifying the amount needed to bring their loan current and the fact 

that they missed previous payments (both presented in the Account History box).

Four of six participants expressed a preference for “Account History” over “Delinquency 

Information” and noted that they considered “Delinquency Information” more threatening 

because it focused on the fact that they were overdue. Additionally, at least one participant 

noted that the label “Delinquency Information” was incorrect because the box showed full 

payments in the transaction history section in addition to delinquent payment information. 

Examples of what participants said about this section included:

 “I know I’m delinquent, I don’t need to read it. I think that account history is not as 

threatening and it’s clearer.”

 “[I’d rather see] Account History, but you could add a delinquency notice to the 

Account History column.”

 
56

6.10 Late Fee and Delinquency-Specific Disclosures [Chapter 7 Only] 

The third Chapter 7 form (the Delinquency Disclosures Form) introduced a number of 

additional disclosures, most of which were received positively. Participants immediately 

noticed and comprehended that the $160 late fee would be assessed after 9/15/2015. 

Participants preferred having this late fee information on the form and did not find it 

threatening. However, their answers were mixed as to whether they found the information 

on how many days they were delinquent helpful. Participants understood the disclosure and 

generally found it useful, but it was not immediately clear to them why it was included or 

how they would use it. Most participants said that they would already have this information 

or know it since they were making the payments. Participants also understood the 

disclosure stating that failure to bring the loan current could result in fees and foreclosure.

Although more participants found this disclosure threatening than found the other additional 

disclosures threatening, most participants still preferred having additional information about

potential fees and foreclosure as it clarified the consequences of non-payment. In all, most 

participants expressed a preference for receiving the delinquency-specific disclosures if 

these disclosures applied to them, with six of seven preferring to receive the late fee 

disclosure, all seven preferring to see how many days delinquent they were, and five of 

seven preferring to receive the potential fees and foreclosure information.

6.11 Information on Mortgage Counseling and Assistance [Chapter 7 Only] 

All of the Chapter 7 forms tested included language in the Account History box stating, “If 

You Are Experiencing Financial Difficulty: See back for information about mortgage 

counseling or assistance.” Five of the seven Chapter 7 Participants were asked what they 

would do if they were having trouble paying their mortgage, and four responded by noting

the statement on the form stating that more information on this was provided on the back of 

the form. The remaining participant said that there was no information about this on the 

form, and that he would call customer service.

 

6.12 Pre-Petition Arrearage [Chapter 13 Only] 

Participants immediately noticed the addition of the pre-petition arrearage box on the 

Arrearage Form and generally (and correctly) interpreted its purpose and contents. Nine of 

the 10 respondents were able to provide a description indicating that they understood that 

this displayed the amount they were behind when they filed for bankruptcy. However, 

participants’ interpretation of the box could be due to the fact that they were led to conclude 

that the form might differ from the first form, which did not include this information.

Participants generally understood that the trustee was making these payments to the 

servicer. Participants also said that the pre-petition arrearage information was helpful, with 

some saying: 
57

 “It shows the amounts that were past due when I filed. And then says that trustee is 

sending the payments shown here. The trustee doesn’t let you know. They just take 

the money and disperse it.”

 “You want to see that your payments are being paid. I think you only get a six-month 

or once-a-year statement from the trustee. I’m sure they’re paying it, but you’re 

always hoping.”

Most of the other participants, while not specifically referring to the trustee in this 

discussion, generally identified the trustee as the person making payments during the 

bankruptcy. As one of those participants said when asked who was making payments to 

Springside Mortgage, “The trustee did. That’s who I give my money to.”

Regarding the explanatory text, participants generally preferred the statement in the 

Alternate Arrearage Form because it indicated that “these are separate from your regular 

monthly mortgage payment.” Three of the 10 participants indicated that they did not know 

or were not sure what the label “pre-petition arrearage” meant, but were still able to 

understand what was being shown in that section, since it was defined earlier in the title of 

this section. A few participants noted that this label was redundant, but the redundancy did 

not interfere with their understanding of the information in this section. 

6.13 Contact Information for the Mortgage Company 

When Chapter 7 Participants were asked what they would do if they wanted more 

information on the mortgage, all seven said they would contact Springside Mortgage, with 

many of them referencing the customer service number listed on the form. Chapter 13 

Participants were not specifically asked this question, but when asked whom they would 

contact if they believed they had made all their payments, six of the 10 respondents 

indicated that they would contact Springside Mortgage (the remaining participants indicated 

that they would contact their trustee or attorney). Overall, no participants expressed concern 

about contacting the mortgage company with questions or indicated that they would not be 

able to find contact information.

The CFPB sought to create and test periodic statement forms as part of its November 2014 

NPRM, which included proposed amendments to Regulation Z’s periodic statement 

requirements regarding consumers in bankruptcy. The NPRM included proposed sample 

forms. Following the NPRM, the proposed sample forms, as well as modified versions of 

those forms, were tested in an iterative process to determine borrowers’ reactions to the 

7.0 Conclusions
58

forms, whether they would comprehend the information included in these statements, and 

how to best present information in a user-friendly way. As such, comprehension, attitudinal 

reactions, and perceived utility of these forms were tested across three rounds. Crosscutting themes across these rounds included:

1) Participants generally preferred to receive these statements, rather than not receive 

them, if they had a mortgage while in bankruptcy. This was particularly true if they 

wished to keep their house.

2) Participants generally preferred non-technical language, especially for the Chapter 13 

forms (though some participants, particularly in Round 1, understood and preferred 

more technical language). Examples of technical language that led to some 

comprehension problems include statements about “impos[ing] personal liability,”

“pre-petition payments,” and “post-petition arrearage.” Using plain language 

statements, such as “collect a debt” and “amounts due before bankruptcy,”

conveyed the information while seeming to alleviate participants’ confusion.

3) Statements that the payments were “voluntary” were subject to varying 

interpretations by participants and did not facilitate comprehension as most 

participants already understood that they could choose not to make payments but 

that the consequence would be losing the home.

4) In addition to the Payment Amount box, participants looked to both the payment 

coupon and the Explanation of Payment Amount boxes to help understand how much 

they were being asked to pay in a particular month.

5) Clear information about consequences of non-payment—although this information

can appear somewhat threatening—helped participants understand their various 

courses of action and what would happen if they did not take action. In fact, some 

participants wanted even clearer, more direct language about these consequences. 

This remained true for the delinquency information tested in Round 3: participants 

wanted to know exactly what the late fee was and when it would be assessed.

6) The distinction between post-petition payments and pre-petition arrearage payments 

was not always immediately clear to participants. Participants immediately noticed 

the distinction in Round 3, where the first form did not contain any information on 

pre-petition payments but the second form did. In other rounds, participants took 

longer to, or were sometimes unable to, comprehend the distinction. Overall, 

participants in Rounds 1 and 3 generally understood the pre-petition arrearage 

disclosures and that these disclosures represented a separate stream of payments 

from the post-petition payments, while participants in Round 2 struggled to 

comprehend the pre-petition arrearage information. However, this is one area where 

the context of testing is important to keep in mind. Participants undergoing 

bankruptcy might know whether they are behind on their payments before filing for 

bankruptcy and, as such, might be able to identify this information on a mortgage 

statement and interpret why it was there. 
59

7) Similarly, the forms tested in this scenario included many things that would not 

necessarily appear on each borrower’s statement (e.g., arrearages, late fees, etc.), 

and thus not all participants may have had experience with these situations. The

forms also included standard pieces of information that would appear on each 

borrower’s statement (payment amount, bankruptcy statement, etc.), and 

comprehension of this standard information was high. 
60

A.1 Chapter 7 Proposed Form

Appendix A: Round 1 Forms
61

A.2 Chapter 7 Current Pay Form
62

A.3 Chapter 13 Proposed Form
63

A.4 Chapter 13 Revised Form
64

A.5 Chapter 13 P&I Form
65

B.1 Chapter 7 Current Pay Form

Appendix B: Round 2 Forms
66

B.2 Chapter 7 Total Pay Form
67

B.3 Chapter 7 Combined P&I Form
68

B.4 Chapter 13 Base Form
69

B.5 Chapter 13 Alternate Form
70

B.6 Chapter 13 Combined P&I Form
71

C.1 Chapter 7 Total Pay Form

 

Appendix C: Round 3 Forms
72

C.2 Chapter 7 Current Pay Form
73

C.3 Chapter 7 Delinquency Disclosure Form
74

C.4 Chapter 13 No Arrearage Box Form
75

C.5 Chapter 13 Arrearage Box Form
76

C.6 Chapter 13 Alternate Arrearage Form
77

During each round of testing, participants were asked to complete four Likert scale 

questions about the first form they were shown, which allowed for the collection of data on 

their initial reactions. Participants rated the following form in each round:

Round 1: Chapter 7 Participants—Proposed Form

Chapter 13 Participants—Proposed Form

Round 2: Chapter 7 Participants—Current Pay Form

Chapter 13 Participants—Base Form

Round 3: Chapter 7 Participants—Total Pay Form

Chapter 13 Participants—Base Form

D.1 Format Organization

Participants were asked how organized they found the form and were asked to rate it on a 5-

point scale. Chapter 7 saw a steady increase from round to round of participants who rated 

it either a 4 (“very”) or a 5 (“extremely”) organized (Figure D1.1). Chapter 13 saw a 

somewhat opposite effect, with only half of Round 3 participants rating the form either 

“very” or “extremely” organized (Figure D1.2). 

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 7 Format Organization

Figure D1.1: Percentage of participants in each round who rated the Chapter 7 form as “very”

or “extremely” organized.

Appendix D: Likert-Scale Ratings Summary
78

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 13 Format Organization

Figure D1.2: Percentage of participants in each round who rated the Chapter 13 form as 

“very” or “extremely” organized.
79

D.2 Language Clarity

Participants were asked how clear the language on the form was and were asked to rate it 

on a 5-point scale. Chapter 7 round-over-round ratings were mixed, with 72% of participants 

across all three rounds rating it either a 4 (“very”) or a 5 (“extremely”) clear (Figure D2.1). 

Chapter 13 saw a steady increase across rounds of participants, who rated the form either 

“very” or “extremely” clear (Figure D2.2). 

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 7 Language Clarity

Figure D2.1: Percentage of participants in each round who rated the language of the Chapter 7 

form as “very” or “extremely” clear.

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 13 Language Clarity

Figure D2.2: Percentage of participants in each round who rated the language of the 

Chapter 13 form as “very” or “extremely” clear.
80

D.3 Trustworthiness of Information

Participants were asked how trustworthy they thought the information on the form was and 

were asked to rate it on a 5-point scale. Trustworthiness ratings of the Chapter 7 form saw a 

steady round-over-round increase of participants rating it either a 4 (“very”) or a 5 

(“extremely”) organized (Figure D3.1). Chapter 13 round-over-round ratings were rather 

steady, with 68% of participants across all three rounds rating the form either “very” or 

“extremely” trustworthy (Figure D3.2). 

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 7 Trustworthiness

Figure D3.1: Percentage of participants in each round who rated the Chapter 7 form as “very”

or “extremely” trustworthy.

Figure D3.2: Percentage of participants in each round who rated the Chapter 13 form as “very”

or “extremely” trustworthy.
81

D.4 Helpfulness

Participants were asked how helpful they thought the form would have been to them if they 

were paying their mortgage while in bankruptcy; they were asked to rate this on a 5-point 

scale. Helpfulness ratings of the Chapter 7 form saw a steady round-over-round increase of 

participants rating it either a 4 (“very”) or a 5 (“extremely”) helpful (Figure D4.1). Chapter 13 

ratings were rather steady, with 65% of participants across all three rounds rating the form 

either “very” or “extremely” helpful (Figure D4.2). 

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 7 Helpfulness

Figure D4.1: Percentage of participants in each round who rated the Chapter 7 form as “very”

or “extremely” helpful.

0%

20%

40%

60%

80%

100%

Arlington Fort Lauderdale Chicago

Chapter 13 Helpfulness

Figure D4.2: Percentage of participants in each round who rated the Chapter 13 form as “very”

or “extremely” helpful.
82

H.1 Introduction

In Round 3, eye-tracking glasses were used to capture participants’ eye movements when 

interacting with the Chapter 7 Total Pay Form. Eye tracking is most informative and adds the 

most value when the product being tested is final or near-final. The team determined that 

the Chapter 7 Total Pay Form was sufficiently close to a final version to make valuable use 

of eye tracking.13 Five of the seven Chapter 7 participants in Round 3 calibrated properly, 14

resulting in a final sample of five participants used in the eye tracking analyses. 

Eye tracking data is inherently qualitative in nature and is used to gain insight into how 

some users might process a given stimulus. Results should be used to inform future form 

revisions, not necessarily to extrapolate that the general population will all interact with the 

forms in the same way that this set of participants did. Some analyses in this study have 

fewer than five participants included in the data set due to the participants answering 

questions while looking at the moderator and not at the form; again these findings are 

included as descriptive data on how these participants interacted with these materials, not 

to generalize to a large population.

Eye movement data provided an additional level of insight into participants’ experience with 

the form. Eye movements consist of fixations, which occur when the eye is relatively still, 

and saccades, which are the rapid movements between the fixations. A fixation is very short, 

typically 0.1 to 0.5 seconds in duration. Heat maps and gaze plots are then used to visualize 

the eye-movement fixations that are captured by the glasses. 

Heat maps visualize aggregated fixations from multiple participants. The red area on a heat 

map shows the area where the most fixations occurred relative to other areas on the form; 

areas on a heat map with no coloration were not fixated or rarely fixated. 

Gaze plots visualize fixations from individual participants. The numbers on the gaze plot 

circles correspond to the order in which the fixations occurred. The size of the circle on a 

gaze plot corresponds to the length of the fixation duration; larger circles represent fixations 

with longer durations. The lines on a gaze plot connect the order in which the fixations 

occurred; longer lines between fixations typically signify a participant who scanned, while 

shorter lines typically signify a participant who closely read. Gaze plots do have a drawback 

 

13 Properly calibrating the eye-tracking glasses to a particular participant takes several minutes at the outset of each session. Given the 

additional information on the Chapter 13 forms, the team determined to forego eye tracking during the Chapter 13 sessions in favor of 

asking additional questions about how the participants understood and would use the Chapter 13 forms. 

14 Participants who wear corrective lenses were requested to either wear their contacts, or not wear their glasses during the session if they 

were able to still see the form. Although the majority of participants complied with this request, two participants did not wear contact 

lenses and needed their eyeglasses to see. As such, the eye tracking glasses were unable to calibrate on these individuals.

Appendix E: Round 3 Chapter 7 Eye Tracking Findings
83

in that they cannot display data from large numbers of participants while still being 

interpretable; however, they allow the researcher to examine the order in which a participant 

processed the form, something that heat maps do not communicate. 

H.2 Eye Tracking of the Initial Read-Through

Heat maps and gaze plots were generated from participants’ eye movements to determine 

how attention was allocated to the Chapter 7 Total Pay Form during the initial read-through. 

Analysis of the heat map shows that the Explanation of Payment Amount and Bankruptcy 

Message sections had the highest number of fixations on the page (Figure H.2a). The 

Explanation of Payment Amount section functions as a numerical summary explaining why 

the form’s recipient is being asked to pay a certain amount. The dense text in the 

Bankruptcy Message section required more reading, resulting in more fixations than the 

other areas on the form. The gaze plots demonstrated that most participants read the notice 

thoroughly (Figures H.2b-H.2f). Participants spent a total of anywhere from 35 to 79 seconds 

on their initial reviews of the form. 
84

Legend

 Fewer Most

Figure H.2a. This heat map 

is a compilation of all eye 

fixations for all five

participants that occurred 

during the participants’

initial read-through of the 

Chapter 7 Total Pay Form.
85

Figure H.2b. Gaze plot of 54 seconds of engagement from Participant 1, showing that he or she read all 

sections of the form fairly thoroughly during the initial read-through.
86

Figure H.2c. Gaze plot of 1 minute and 19 seconds of engagement from Participant 2, showing that he or she 

read most sections of the form fairly thoroughly during the initial read-through, but did not read the address 

information at the top-left side of the form.
87

Figure H.2d. Gaze plot of 44 seconds of engagement from Participant 4, showing that he or she read most 

sections of the form fairly thoroughly during the initial read-through, but did not read the address information 

at the top-left side of the form.
88

Figure H.2e. Gaze plot of 35 seconds of engagement from Participant 7, showing that he or she read most 

sections of the form fairly thoroughly during the initial read-through, but did not read the statement date at the 

top-right side of the form.
89

Figure H.2f. Gaze plot of 1 minute and 13 seconds of engagement from Participant 11, showing that he or she 

read most sections of the form fairly thoroughly during the initial read-through, but did not read the sender 

information at the top-left side of the form.
90

H.3 Looking for the Amount Due

Heat maps and gaze plots were generated from participants’ eye movements to determine 

where participants looked when asked how much the form was telling them to pay this 

month. Analysis of the heat map shows that the Payment Amount at the top of the form and 

the Payment Amount section on the payment coupon at the bottom of the form had the 

highest number of fixations (Figure H.3a). Participants had already conducted an initial 

review, so they knew exactly how to locate the payment amount right away in all but one 

instance, as demonstrated in participants’ gaze plots (Figure H.3b-H.3f). 

Legend

 Fewer Most

Figure H.3a. This heat map is a 

compilation of all eye fixations for all 

five participants that occurred when

participants were asked how much 

the form was telling them to pay this 

month.
91

 

Figures H.3b-H.3c. Two gaze plots show two participants directing their eyes to the top-right side of the form to 

the Payment Amount and Explanation of Payment Amount boxes. These participants took between two and 

four seconds to identify a payment amount. Both participants got the answer correct. 

Figures H.3d-H.3e. Two gaze plots show two participants directing their fixations to the bottom of the form to 

the Payment Amount box on the payment coupon. These participants took approximately two seconds each to 

identify a payment amount. Both participants got the answer correct. 
92

Figure H.3f. Gaze plot of one participant who looked in multiple places on the form to identify a payment 

amount. This participant took approximately two seconds to identify the correct payment amount.
93

H.4 Looking for Consequences of Nonpayment

Gaze plots15 were generated from participants’ eye movements to determine where 

participants looked when asked what could happen if they did not bring their accounts up to 

date. Only two participants properly tracked when asked this question, as three participants 

did not look at the form when answering (they instead directed their attention to the 

moderator). One participant directed his/her attention towards the payment coupon 

(Figure H.4a), while the other was rather unfocused when answering the question (Figure 

H.4b), implying that neither knew where to look to find text explaining what would happen. 

Figure H.4a. Gaze plot of one participant who looked at the payment coupon when looking for the 

consequences of non-payment. This participant only looked at the form for two seconds before giving an 

answer to the question. 

 

15 A heat map was also generated for this analysis, but is not being reported due to low samples and biased 

data. Only two participants tracked for this item, one of whom took 26 seconds longer than the other 

participant to formulate an answer. Therefore, the heat map was biased toward the longer participant to such 

a degree that individual gaze plots were determined to be more useful for this analysis. 
94

Figure H.4b. Gaze plot of one participant who looked at multiple places on the form when looking for the 

consequences of non-payment, though most of his/her fixations are clustered on the right side of the page 

where the dollar amounts are located. This participant spent 28 seconds looking at the form before giving an 

answer to the question.
95

H.5 Looking for What Springside Did with Their Partial Payment 

Heat maps and gaze plots were generated from participants’ eye movements to determine 

where participants looked when asked what Springside did with their partial payment last 

month. Only three participants properly tracked when asked this question, as two 

participants did not look at the form when answering (they instead directed their attention to 

the moderator). Analysis of the heat map shows that the Past Payment Breakdown in the 

middle of the form had the highest number of fixations (Figure H.5a). Individual results were 

mixed, with one participant immediately looking at the Important Messages box where the 

information was located (Figure H.5b), one participant looking at the Past Payments 

Breakdown before looking at the Important Messages (Figure H.5c), and one participant 

looking all over the form (Figure H.5d). 

Legend

 Fewer Most

Figure H.5a. This heat map is a 

compilation of all eye fixations for all 

three participants that occurred when

participants were asked what Springside 

did with their partial payment last 

month.
96

Figure H.5b. Gaze plot of one participant who immediately looked at the Important Messages box where the 

partial payment information was located. This participant looked at the form for five seconds before correctly 

answering the question.
97

Figure H.5c. Gaze plot of one participant who looked at the Past Payments Breakdown box before looking at 

the Important Messages box where the partial payment information was located. This participant looked at the 

form for 19 seconds before incorrectly saying that Springside used the partial payment to pay down part of 

their loan.
98

Figure H.5d. Gaze plot of one participant whose gaze pattern was more disorganized than the other two 

participants in that he/she looked at several different boxes on the form. This participant looked at the form 

for 15 seconds before giving an answer to the question. This participant never looked at the Important 

Messages, and did not give the correct answer to the question. 
99

H.6 Looking for Whether They Have a Payment Choice 

Heat maps and gaze plots were generated from participants’ eye movements to determine 

where participants looked when asked whether they had a choice about making a payment. 

Only four participants properly tracked when asked this question, as one participant did not 

look at the form when answering. Analysis of the heat map shows that the Bankruptcy 

Message box near the top-left side of the form had the highest number of fixations 

(Figure H.6a). Individual results were mixed, with two participants concentrating mostly on 

the Bankruptcy Message box (Figures H.6b and H.6c), one participant never looking at the 

Bankruptcy Message box at all (Figure H.6d), and one participant looking only at the last 

sentence of the Bankruptcy Message box (Figure H.6e).

Legend

 Fewer Most

Figure H.6a. This heat map is a 

compilation of all eye fixations for all 

four participants that occurred when

participants were asked whether they 

had a choice about making a payment.
100

Figure H.6b. Gaze plot of one participant who concentrated mostly on the Bankruptcy Message content when 

looking for payment choice information. This participant looked at the forms for 16 seconds before saying that 

the notice was for informational purposes only. 
101

Figure H.6c. Gaze plot of one participant who looked all over the form, but spent more time on the Bankruptcy 

Message content than elsewhere when looking for payment choice information. This participant looked at the 

form for 17 seconds before saying that the notice was stating that he/she had to make a payment. 
102

Figure H.6d. Gaze plot of one participant who concentrated on the bottom half of the form when answering this 

question, specifically on the Account History section and the Payment Amount section on the payment coupon. 

This participant looked at the form for six seconds before saying that the notice was not stating that he/she 

had to make a payment. 
103

Figure H.6e. Gaze plot of one participant who looked all over the form, but spent more time on the Bankruptcy 

Message content (specifically the last sentence) than elsewhere when looking for payment choice information.

This participant looked at the form for six seconds before saying that you always have a choice about whether 

to make a payment, but those choices have consequences. 
104

H.7 Looking for How to Stop Receiving Notices 

Heat maps and gaze plots were generated from participants’ eye movements to determine 

where participants looked when asked what they would do if they wanted to stop receiving 

notices. Only four participants properly tracked when asked this question, as one participant 

did not look at the form when answering. Analysis of the heat map shows that the last 

sentence of the Bankruptcy Message box near the top-left side of the form had the highest 

number of fixations (Figure H.7a). Individual results were mixed, with two participants 

concentrating almost exclusively on the Bankruptcy Message box (Figures H.7b and H.7c). 

The other two participants had slightly more disorganized gaze patterns in that they looked 

at multiple boxes on the form, yet they still spent the plurality of their time looking at the 

Bankruptcy Message box (Figure H.7d and H.7e).

Legend

 Fewer Most

Figure H.7a. This heat map is a 

compilation of all eye fixations for all 

four participants that occurred when

participants were asked what they would 

do if they wanted to stop receiving 

notices.
105

Figure H.7b. Gaze plot of one participant who concentrated almost exclusively on the Bankruptcy Message

content when answering this question. This participant looked at the form for seven seconds before correctly 

answering the question. 

Figure H.7c. Gaze plot of one participant who concentrated almost exclusively on the Bankruptcy Message

content when answering this question. This participant looked at the forms for three seconds before correctly 

answering the question. 
106

Figure H.7d. Gaze plot of one participant who looked all over the form, but spent the plurality of his/her time on 

the Bankruptcy Message content than elsewhere when answering this question. This participant looked at the 

form for five seconds before correctly answering the question.
107

Figure H.7e. Gaze plot of one participant who looked in different places on the form, but spent the majority of 

his/her time on the Bankruptcy Message content than elsewhere when answering this question. This 

participant looked at the form for four seconds before correctly answering the question.