APR claims not delivering
A survey published today claims that 52 per cent of customers are not getting the advertised APR when applying for a loan.
With 66 per cent of people supposed to qualify for the advertised rate on personal loans, the poll by moneyfacts.co.uk will add to concerns about companies exploiting loopholes to force extra costs on their customers.
The Financial Services Authority has warned that some firms offer their initial APR only for a short period before the rate changes.
David Elms, chief executive at IFA Promotion, said consumers have risked falling victim to the increasingly complicated nature of the financial packages available.
'Financial products have certainly got more confusing,' he said, 'you now have to explain products, advice types and even what pieces of paper mean.'
With around half of the UK population having savings of £600 or less, the market in both secured loans and unsecured personal loans is on the up.
To avoid the minefield of hidden costs and unclear rates, consumers should take advantage of the clearest financial advice, and compare the best buys online. | 
