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It's now taking more effort to find cheap personal loans.
Various loan companies are making life more difficult for anyone looking for a cheap personal loan by displaying misleading headline rates.
A practice that has been quite common in some sectors of the finance industry seems to be spreading as more companies now show split typical APR rates in their advertising. The high street banks have been using this debatable tactic for a while now and, because of a tighter credit market, other companies are employing the same technique to attract new business.
Instead of displaying one typical APR rate for their product range, they carve up their range into a sub-section that attracts lower rates and display one typical rate for this part, while displaying another, higher rate, for the remainder of their range.
We wonder what the FSA has to say about this, especially as they seem to be quite diligent at the moment in enforcing their "Treat customers fairly" initiative.
Many of the companies using this tactic to promote their cheap loans employ sizable compliance departments to make sure they stay within the rules, so perhaps we can assume they have verified this method with the FSA and received it's approval.
Here at Nice Loans we've chosen to stay squeaky clean and show only one typical APR that covers our whole product range, even the more expensive bad credit loans. Remember almost two thirds of our borrowers receive a loan at this rate or CHEAPER, so contact us today for a fast quote.
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