"Representative 0% APR" ?

[Famous Graham]

Something that occurred while watching the Freelander advert during the rugby.

What does that actually mean? It's up to the sales rep whether you can get a 0% loan?

[PurpleMoonlight]

The 0% will be subject to a credit check so not all people will get it. It is a requirement to state the rate 'most' will get in any loan advert.

[Famous Graham]

PurpleMoonlight said:

The 0% will be subject to a credit check so not all people will get it. It is a requirement to state the rate 'most' will get in any loan advert.

Appreciate that, but I don't think I've seen the word "representative" tacked on to it before.

[mattdaniels]

It used to be quoted as "Typical APR". From February 2011 the rules changed and they now have to call it "Representitive APR".

[Famous Graham]

Aah - gotcha. Cheers

[kambites]

mattdaniels said:

It used to be quoted as "Typical APR". From February 2011 the rules changed and they now have to call it "Representitive APR".

I wonder why; it was much more obvious what "typical" meant than "representative".

[bazking69]

mattdaniels said:

It used to be quoted as "Typical APR". From February 2011 the rules changed and they now have to call it "Representitive APR".

And they've cranked down the percentage of people it must be offered too...

[Roger Dodger]

I'd assume that 'typical' = average
'representative' = what we have chosen for this example, i.e not average, but best case.

I'm probably wrong though!

[Mojooo]

As above, they have reduced the amount of people that must be offered the representative amount and have changed the wording of the law slightly so that it makes it much easier for ocmpanies to quote lower rates that less peopel now have a chance of getting.


“the representative APR” is an APR at or below which the advertiser reasonably expects, at the date on which the credit advertisement is published, that credit would be provided under at least 51% of the consumer credit agreements which will be entered into as a result of the advertisement. For these purposes, in the case of a credit advertisement which falls within section 151(1) of the Act, “advertiser” means the person carrying on the business of credit brokerage;

[Ozzie Osmond]

kambites said:

I wonder why; it was much more obvious what "typical" meant than "representative".

Some paper-pusher probably decided "representative" was "more sustainable" than "typical".

What a load of tosh!!!!

[Deva Link]

Ozzie Osmond said:

"more sustainable"

- like greener?

[Mojooo]

If only 51% of peopel are expected to get the rate then that isnt 'typical' IMO

Typical would be something like 80%+ of people - although i think udner the old law it was 66% or so.