APR wrong!

[nicklea]

That seems a really big difference, would you mind giving some details of the debt and how you calculated that figure? It may be that you are including some things that shouldn't be

[nicklea]

Hi excel,

 

On the face of it, it does appear that this is wrong. However, what you need to think about is if there was any payment holiday at the start of the loan.

 

You mentioned that is was "a buy now pay later agreement". It may be in the t&cs that, although you didn't need to make any payments, interest would still be accruing on the loan during the payment holiday.

 

So if, for example, you did not have to make any repayments for the first 6 months then the interest would still be accruing during this period and the figures you've given would be correct and the apr is 29.8% as you are actually borrowing the money over over 54 months.

 

Hope this is helpful

[nicklea]

If the APR is the ONLY rate shown the agreement is unenforceable simply because the APR is never 'the interest rate to be applied' because

 

 

I believe that you are wrong in this. The interest rate is a prescibed term for credit card agreements only.

 

Even under the 2004 regs, this hasn't become a prescribed term and, if the interest rate is missing or incorrect, then the agreement is enforceable on a court order. In this case, I believe the interest rate is correct anyway.

 

Regards

 

nicklea

[nicklea]

Nicklea

 

However look at Schedule 1 paragraph 9.

 

Unfortunately, schedule 1 does not contain the prescribed terms - that's schedule 6. So it is still enforceable on a court order regardless. This means that the debtor must make the argument as to why he has been prejudiced and why the court should not make an enforcement order.

 

One possible way of doing this may be, if the interest rate shown is inaccurate, to argue that you agreed a loan at x% which would mean that the monthly amount payable was incorrect and so the prescribed terms are correct and it's not enforceable

[nicklea]

Hi Pelham,

 

Schedule 6 was not introduced by the 2004 regs. Here are the relevant sections from the 2004 regs modifying some of the schedules and you'll see that schedule 6 wasn't touched:-

 

13. For Schedule 4 (forms of statement of protection and remedies available under the Consumer Credit Act 1974 to hirers under regulated consumer hire agreements) substitute –

 

14. After Part II of Schedule 5 (forms of signature box) insert –

 

15. In Schedule 7 (provisions relating to the disclosure of the APR) for paragraph 1 substitute –

 

16. - (1) Schedule 8, part 1 (information to be contained in documents embodying regulated modifying agreements varying or supplementing earlier credit agreements) is amended as follows.

[nicklea]

No problem, that's why we're here - to learn from each other.

 

I'm still making mistakes and learning from other people