London, UK (PRWEB UK) 27 September 2011
In accordance with changes in the way interest is calculated and advertised, Payday Power have increased their representative APR to 1,940.5%. However, the good news for customers is that this rise in APR will not alter the actual cost of borrowing.
Payday Power are the latest in a long line of payday loans companies to make adjustments to their representative APR in order to comply with the legislation that was introduced in February 2011. Representative APR provides the rate of interest that the majority of customers obtain and is based on annual borrowing. As such, short-term lenders need to regularly monitor their advertised rate to avoid any potential inaccuracies – just as Payday Power have done.
The small increase means that the typical representative APR has gone from 1,737% to 1,940.5%. Borrowers will still pay the same rate, the equivalent of £25 for every £100 received, but the advertised figure will be adjusted to provide the most up-to-date figure for consumers.
This law was brought in to provide greater transparency for the cost of borrowing for customers and to protect them from high charges. As such, lenders are more than happy to adhere to the ruling and ensure that everybody is fully aware of the cost of borrowing.
Simon, the Managing Director of Payday Power spoke about the increase in APR and commented: “Even though the representative APR has increased, the amount per £100 that the customer will pay back remains the same. We continue to provide our customers with a high level of service and offer a wide range of lenders to choose from, in order to find the best cash loan in times of need. ”
“As other loan lending companies charge varying APR and interest rates, with Payday Power customers can clearly see the amounts they will have to pay, making the process of calculating how much they will need to pay back on their loan a lot easier. We encourage customers to visit our website for more information on the current rates and loan options. ”
About Payday Power
Founded in 2008, Payday Power is a leading broker of online payday loans. Part of the Reset Finance group, they enjoy the backing of a number of major lenders to help get the best deal for customers. Payday Power offer payday loans of up to £1,250 at a typical APR of 1,940.5% - equating to around £25 per £100 borrowed or 25% of the total amount - and are committed to responsible lending.
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