Typical APR

[stevokenevo]

I didnt know where to post this, i hope this spot is fine.

Below is a transcript of an e-convo between myself and a loans company, i was browsing the net for a sub prime lender (contemplating replacing my car) and came across this lender.

Now it appeared strange that nowhere on the website did it display the typical APR for any of its products.

What id like to know, is it not a legal requirement for a loan company/broker to display a typical APR?

i have included this to show they were rather reluctant to provide any information unless i actually applied for a loan

(better read from bottom to top lol)

In a message dated 23/04/2008 10:03:36 GMT Daylight Time, customer.services@yesloans.tv writes:

Dear stevokenevo,

Thank you for your recent email, The typicalexample for the amount and term that you have requested is as follows:

Typical Example

£8000 over 36 months, APR 14%.
Total amount repayable £9843.16.
Monthly installments £273.42.

Please be aware that this is not the exact figure of what you would pay if taken that loan out.


Kind Reagards,

Steve
Yes Loans
Customer Care

From: stevokenevo
Sent: Wed 23/04/2008 09:58
To: Customer Services
Subject: Re: Yes Loans Customer Care


Thanks again for the speedy response Steve,

Could you provide me with a typical example for £8000/3 years.

Regards


In a message dated 23/04/2008 09:31:58 GMT Daylight Time, customer.services@yesloans.tv writes:

Dear stevokenevo,

Thank you for your recent email, With regards to the typical APR for our lenders I am unable to produce these figures although I can provide you with a typical example from our system if you can inform me of the requested amount and term that you require.


Kind Regards,

Steve
Yes Loans
Customer Care


From: stevokenevo
Sent: Wed 23/04/2008 08:26
To: Customer Services
Subject: Re: Yes Loans Customer Care


Thanks for the speedy response Steve.

Unfortunately, i think it would be unwise for me to apply for a loan with your company, unless i had an idea of your typical rates.
I may have an impaired credit history, but as you will appreciate, i am not interested in being ripped off with extortionate interest rates.
Unless you can provide me with a Typical APR for your products, i am afraid i will be unable to fill an application.

Can you provide me with the typical rates for your products.

Best Regards


In a message dated 22/04/2008 16:18:19 GMT Daylight Time, customer.services@yesloans.tv writes:

Dear Stevokenevo,

Thank you for your email, before any/rates/information can be discussed with you, we would need you to complete an application with us, Provided meet our qualifying criteria. Please contact a member of our applications team on 0845 344 2222 who will inform you if your eligible to apply with us and answer any queries that you may have. Alternatively, you can complete an application online by visiting www.yesloans.tv and a member of our application team will contact your shortly.

Kind Regards

Steve
Yes Loans
Customer Care


From: stevokenevo
Sent: Tue 22/04/2008 15:56
To: Customer Services
Subject: APR


I cant see on your website, the typical APR's for your various products.

Can you inform me of these

Regards

[stevokenevo]

Re: Typical APR

They offer secured and unsecured loans, and as you can see it does not specify which this rate may apply to, it is all very vague, and as such its been enough to put me right off.

My old mondeo will last another year lol

[argentarius]

Re: Typical APR

Typcial example: £5000 over 60 Months @ 14% APR. Total Repayable £6980.48. Monthy Installments £116.34.

That's on their website. It took me about 2 minutes to find it.

And it's even the same APR that "Steve" quoted in his e-mail to you.

I don't see what your problem is, to be honest apart from the fact that his initial answer wasn't very helpful - but as your question was wrong too, that's somewhat academic IMHO.

Hope that helps!

[Amethyst]

Re: Typical APR

Just be careful Stevo, I know you would be, but read any docs carefully before you sign up for subprime loans and before doing anything check them out here first...........please

[Paule]

Re: Typical APR

I think Stevos point is that, you have to do an ACTUAL application and therefore credit checks etc before you will find out what rate they will give you.

Therefore you could rack up a lot of credit checks, just to find out what rates people are willing to offer you,
And a lot of checks on your file starts to look bad, and therefore rates offered will go up, or application declined.

PKea

[stevokenevo]

Re: Typical APR

That's on their website. It took me about 2 minutes to find it.

And it's even the same APR that "Steve" quoted in his e-mail to you.

I don't see what your problem is, to be honest apart from the fact that his initial answer wasn't very helpful - but as your question was wrong too, that's somewhat academic IMHO.

Hope that helps!

Ok - i managed to find the same bit of info as argentarius -

And thanks for your HO Argentarius, but, if you re-read my initial email,

I cant see on your website, the typical APR's for your various products.

Can you inform me of these

Regards

you will notice it is not actually a question, and as such its not 'wrong'.

My problem was, i couldnt see the APR, i asked the question, and was informed i should make an application first. I don't think that is right and as PK said, it would open me up to unnecessary credit checks etc.

But thanks for your input :okay:

[argentarius]

Re: Typical APR

I don't think that was Stevo's point, to be honest.

Stevo was complaining that a typical rate isn't shown on Yes's site. But it is shown, just not on the front page. It takes a little bit of looking to find it (like I said, it took me 2 minutes).

With any lender offering risk-based pricing (which is almost all of them) you don't know the actual rate you will get until you apply. That is the nature of the beast. So if you have impaired credit, it is very likely you will incur multiple searches before you get a rate you are happy with.

The recent thread about the Banking Code reforms talked about this issue, and there was consideration of different types of credit reference search records, such that "seeing what rate I'd get" would somehow be reported differently from "applying for a loan". But the banks rejected this suggestion, and I agree with them, as the distinction between the two is a fine one.

Cross-posted with Stevo so updated:

- The advice that you needed to apply to get a real rate, rather than a typical rate, wasn't wrong and would apply to any risk-based pricing lender.
- I've already agreed that the person should have responded more helpfully in the first place, and quoted you the typical APR from the website rather than saying it was impossible.

[stevokenevo]

Re: Typical APR

Cross-posted with Stevo so updated:

- The advice that you needed to apply to get a real rate, rather than a typical rate, wasn't wrong and would apply to any risk-based pricing lender.
- I've already agreed that the person should have responded more helpfully in the first place, and quoted you the typical APR from the website rather than saying it was impossible.

Bearing in mind i asked for typical rates, they didnt advise i needed to apply to get a real rate, they advised i needed to apply before they would discuss rates.

I would rather this didnt degenerate into a bitch fight.

Should they show the APR on the website, i believe they should, and it turned out they did, i just didnt see it.

Should i have to apply to have an idea of their typical rate? No, as this would affect my ability to gain credit elsewhere.

cheers

[argentarius]

Re: Typical APR

Should they show the APR on the website, i believe they should, and it turned out they did, i just didnt see it.

Should i have to apply to have an idea of their typical rate? No, as this would affect my ability to gain credit elsewhere.

cheers

I 100% agree.

They certainly could be clearer about their APRs; it would help a lot of they showed the relevant APRs for different types of lending, as you suggested.

But conversely, for any lender offering different types of sub-prime lending, "typical" APR is a pretty meaningless concept as there would be different "typical" APRs for different schemes and for different types of borrower within each scheme.