True APR?
August 10, 2009 | Wall Street Journal, alternatives, industry | Comments (0)This Wall Street Journal blogger makes the point that true consumer protection would include counting fees and other bank charges as part of the APR:
….But there is an additional question: will these changes in lending conditions be reflected in the disclosed Annual Percentage Rate (APR)? Historically, the rules around the APR – overseen by the Federal Reserve – have not forced lenders to include all charges in this calculation. Why is this OK? It’s not OK. This would be like cereal manufacturers including only some ingredients on their labels. Or makers of children’s toys not telling you that some dangerous chemicals are involved. Why has this been allowed to happen? Essentially, because nobody watches out for the consumer of financial products.
Comments»
No comments yet.