interest rate?

[paulisgod]

Do interest rates on credit agreements have to be stated annually? The interest rate is stated but it does not say whether it is monthly, or yearly is this right?

[reallymadwoman]

What is the exact wording of the statement about interest?

[paulisgod]

This is taken from my credit agreement

 

3. OTHER FINANCIAL INFORMATION

 

Total charges for credit (i) The total charge for credit is GBP 75,00. The total charge is made up of the following Finance Charges:

(a) GBP 37,50 due on 28 May, 2008

(b) GBP 37,50 due on 27 Jun, 2008

(ii) Interest Rate: 50%

(iii) The amount of the Finance Charge is fixed by us at the beginning of the Loan Agreement. The rate of interest in (ii) is determined by dividing the Finance Charge by the Loan Amount and dividing the result by 100. The finance charge is applied on each Payment Date.

[reallymadwoman]

I don't understand this at all, never seen anything like it. I've asked someone else to take a look.

[davefirewalker]

Well from what I have seen ......as long as there is an interest rate there and a credit limit and a repayment schedule...then it would most probably be enforceable. cant say with 100% certainty without seeing the original docs

 

Dave

[paulisgod]

Its a bit strange to me as well!! i pulled them on it over 2 months ago, saying that it was unenforceable (just trying my luck really). They blanked me for over 1 month and then told me it was enforeable but the figures they quoted when saying this were not the figures from my credit agreement. I pulled them on this too and they have continued to ignore what i say to them.

 

Here is some more info from my agreement

 

2. KEY FINANCIAL INFORMATION

 

(a) Loan Amount Cash loan of GBP 150,00

 

(b) Term42 days commencing on 16 May, 2008

 

© Total of PaymentsGBP 225,00

 

(d) RepaymentsYou must make 2 repayments as follows:

GBP 37,50 due on 28 May, 2008 and

GBP 187,50 due on 27 Jun, 2008. This is on the assumption that you do not request an extension before the end of the loan term. Please refer to the provisions under "Repayment at Payment Date 1" and "Extensions" below for further details.

 

 

(e) Annual Percentage Rate (APR) 5831.50%

3. OTHER FINANCIAL INFORMATION

 

Total charges for credit (i) The total charge for credit is GBP 75,00. The total charge is made up of the following Finance Charges:

(a) GBP 37,50 due on 28 May, 2008

(b) GBP 37,50 due on 27 Jun, 2008

(ii) Interest Rate: 50%

(iii) The amount of the Finance Charge is fixed by us at the beginning of the Loan Agreement. The rate of interest in (ii) is determined by dividing the Finance Charge by the Loan Amount and dividing the result by 100. The finance charge is applied on each Payment Date.

4. KEY INFORMATION

 

(a) Charges on Default

The Lender has the right to amend the amounts of the default charges detailed below to reflect any change in the cost incurred by the Lender in dealing with the default.

The Customer may be charged:

(i) GBP 12.00 each time a Direct Debit is dishonoured on a Payment Date ("Dishonour Fee");

(ii) GBP 20.00 if you cancel your Direct Debit Authority before a Payment Date and fail to pay the Total of Payments because you do not make alternative repayment arrangements with us ("Late Fee");

(iii) for the Lender's reasonable expenses in enforcing this Loan Agreement. These expenses will include (but are not limited to) (i) expense of taking steps, including court action, to obtain payment, including reasonable legal costs that the Lender incurs (ii) tracing the Customer if the Customer changes address without notice and (iii) communicating with the Customer if the Customer breaks the terms of this Loan Agreement;

 

Right to settle early

The Customer has the right to repay the Loan before the end of the Term by making a single payment calculated under a formula which limits the amount of the Finance Charge the Customer pays.

The amount that the Customer would have to pay if, for example, the Customer wanted to settle when a quarter of the Term had passed would be GBP 32,81; if half of the Term had passed the amount would be GBP 48,75; and if three quarters of the Term had passed the amount would be GBP 61,88.

In calculating the amounts shown, no account has been taken of any variation which might occur under the Loan Agreement, and that the amounts are accordingly only illustrative.

5. MISSING PAYMENTS

 

Missing payments could have severe consequences and make obtaining credit more difficult.

6. IMPORTANT - READ THIS CAREFULLY TO FIND OUT ABOUT YOUR RIGHTS

 

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not, the creditor cannot enforce this agreement without getting a court order.

The Act also gives you a number of rights. You can settle this agreement at any time by giving notice in writing and paying off the amount you owe under the agreement which may be reduced by rebate. Examples indicating the amount you might have to pay appear in the agreement.

If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens Advice Bureau.

 

enforceable or not??

[pt2537]

im going to stick my neck out and say yes its enforceable

 

purely because of the fact that it appears to have been taken out after 6th April 07

[car2403]

Possibly slightly off topic, but this is related to the question being asked here, IMHO; (site admin may delete this post if they disagree)

 

http://www.consumeractiongroup.co.uk/forum/legalities/136701-apr-con.html