APR and the legal leeway

[fallenangel]

As I understand the CCA allows the actual APR to be presented on loan agreements with a tolerance of .1% and 1%.

So if my actual APR was 13% the lender would still be within the law by quoting it at 14%

I am hoping someone more knowledgable than I can confirm this logic/legality

[Sparkie1723]

Re: APR and the legal leeway

As I understand the CCA allows the actual APR to be presented on loan agreements with a tolerance of .1% and 1%.

So if my actual APR was 13% the lender would still be within the law by quoting it at 14%

I am hoping someone more knowledgable than I can confirm this logic/legality

Hi falenangel
I believe that would be a correct assumption......its within the tolerance for a stated APR

But..........don't take this for fact I'm no Lawyer'

Sparkie

[fallenangel]

Re: APR and the legal leeway

Hi falenangel
I believe that would be a correct assumption......its within the tolerance for a stated APR

But..........don't take this for fact I'm no Lawyer'

Sparkie

I believe so too!

Unfortunately - lol

[Guest]

Re: APR and the legal leeway

Yes it is a fact see the tcc regs 1980 or the oft 144 information.

General tolerance

A general tolerance allows the disclosure of a rate that is up to 1.0 above or
0.1 below the correct APR. For example, if the correct APR for an agreement,
rounded to one decimal place, is 17.3, any figure from 17.2 to 18.3 inclusive

can be used in an advertisement or agreement.

Peter