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Typical APRs - The Disappointment


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I have lost track of the number of times I've applied for the latest 'offers', only to be given an APR far above the typical. Ok, so I'm young, non-homeowner, but 19.9% after the advertised 7.9% seems a little inflated to me!

 

I know the pros of pricing like this: Companies can offer lower APRs by penalising the 'high-risk' customers. However, there is no way I would take out a 19.9% loan, so I am left with the inconvenience of having a non-productive credit search to my name.

 

What are people's feelings towards Risk Based Pricing? Would people prefer a flat APR offering? Are Typical APRs confusing?

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Hiya Pompeygirl,

 

Great name lol Now this is one of the reasons I'm going to court with MBNA

in my case the APR started at 16.9% then went up to 24.9% for no apparent reason then finally it went up to 36.9% disgusting you bet.

 

Plus ontop of that they added PPI which i did not request as it would not pay out due to a pre-medical condition.

 

I have sent them an S.A.R but had no response they then passed the debt to Optima Legal so i sent them a CPR PART 18 but again so response

 

It was finally passed to portsmouth county court and i got am AQ from them to fill in which i did but could not attach my directions to it as i could not plead due to no docs as MBNA have now committed a criminal offence.

 

Cant wait for my day in court because this whole affair is now winding me up.

 

Regards

 

Leon (pompeyfaith)

Finally if you succeed with your claim please consider a donation to consumer action group as those donations keep this site alive.

 R.I.P BOB aka ROOSTER-UK you have always been a Gent on these boards and you will be remembered for that.

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Standard APRs are a waste of time, though in theory there are supposed to work.

 

A certain percentage (think it's 66%) of loans generated through the advertisement of a specific APR must be of that APR. Problem is there is little way of actually proving this one way or another. It's another unenforceable and pointless piece of legislation.

 

I think what would be better is that lenders have to provide a list of percentages of ALL loans charged at various APRs to allow people to see how generally offers the best deals.

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