Ability to repay credit: Consumer and Creditor responsibilities?

When consumers apply for credit (mortgages, vehicle loans, credit cards, etc.), creditors do not look extensively at the consumer’s finances. Instead, they use the consumer’s credit score, income, and major living expenses to determine eligibility and APR.

Realistically, creditors do not have the resources to extensively review every customer’s finances. Thus they use set income to debt percentage standards, etc. to make decisions. Because busnisses need to ‘make the sale’ while also ‘compensating for risk,’ consumers may receive credit they cannot afford in addition to higher interest rates. Some people assume that if they were approved for financing, they must be able to afford it. As a result, many consumers accrue debt beyond their means of repayment.

Should consumers and/or creditors do more to determine how much credit should be extended/accepted?