How does this affect me?
This change has NO affect on you as the prices of our loans are staying exactly the same.
Why has this changed?
From the 1st February 2011 any business that offers loans or products on credit has to change the way they show their APR. It is no longer described as a Typical APR but as a Representative APR.
This means that 2 things have changed;
1. Previously a Typical example represented the APR of a loan that 66% of customers would have if they replied to that advert, this has now been reduced to 51% of customers
2. We now have to include a rate of interest in our Representative example
What is the rate of interest?
The rate of interest has no effect on the price of our loans or your weekly repayments, instead it acts as a useful tool for comparing products from one lender to those from another.
The rate of interest shows you what the loan would cost, expressed as a percentage of the amount borrowed, if you borrowed the money for one year.
For our loans this amount includes the cost of arranging your loan, the interest charge for the money lent, the charge for the weekly collections at your home and the cost of providing a guarantee that you will not face extra charges. The rate of interest is added on an annual basis and is displayed as a fixed percentage.
