Typical APR
Typical APR is the average annual percentage rate offered by any particular company who offer loan or credit products. Today the typical APR is nearly always prominently displayed in the company’s advertising and in fact there are sound legal reasons for this.
In lending and credit advertisements a company will tell you it’s range of APR which would probably be around 7% - 25% or something broadly similar. However, a common tactic of many companies would be to have a big, gaudy, eye-catching panel that practically shouted “APR from 7%”, leading people to believe that this figure was the typical APR they could get. Nowhere did the ads explain that this was a prime rate for very credit worthy customers and the average customer wouldn’t get anything like those terms.
Now, thanks to the Consumer Credit Act, it is illegal for any APR mentioned in an advert to be displayed more prominently than the typical APR rate, ensuring consumers are not misled.
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