Lenders Compared

**Mogga** · 29-07-08

Just got an email saying

" In order to remain compliant all adverts containing the typical APR and all emails must also display the following statement:
Compare the price of home collected and other cash loans available in your area at www.lenderscompared.org.uk"

That site says:

The website will provide you with information about the price of home credit loans and loans from other providers, including credit unions. You will be able to search for loans available in your own area, making it easer to shop around and compare offers from different lenders. It is part of a package of measures designed to open up the market to greater competition, bringing lower prices and more choice to consumers.

So does that mean that vast amounts of traffic will legally be diverted to this comparison site?

**john-pp** · 29-07-08

yep!

I'd love to see what sort of deal technophobia.com got out of it!! Are these going to be direct, clean links or is there some kind of affiliation going on?

**Flex-Finance** · 29-07-08

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**Mogga** · 30-07-08

So you've bought a very similar domain name to the one the oft say has to be linked to?

Does no one else think this is a problem?

**Flex-Finance** · 31-07-08

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**Flex-Finance** · 06-08-08

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**tom991** · 09-08-08

Site was LIVE! 2 days ago.

Useful for checking out best loan rates in your postcode area.

**Mogga** · 10-08-08

Originally Posted by tom991

Site was LIVE! 2 days ago.

Useful for checking out best loan rates in your postcode area.

But as a distraction to website visitors.

Plus do leaflets/printed ads have to list this URL?

**tom991** · 10-08-08

Originally Posted by Mogga

But as a distraction to website visitors.
Plus do leaflets/printed ads have to list this URL?

Hi Mogga,

The Competition Commission states:
"- Advertisements (other than those delivered etc to individuals and in payment books) have to contain a statement about the website, on and after the appointed day (01 August '08)
- Advertisements and payment books delivered etc to individuals have to contain a statement about the website. Only if delivered etc on or after the appointed day."

So, it seems customer facing documents (adverts & payment books) must have the website link on it from 01 Aug '08.

Tough luck if some-one has just had a batch printed, and didn't know of new legislation!

**Flex-Finance** · 10-08-08

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**tom991** · 10-08-08

Originally Posted by Flex-Finance

Not really. The infatuation with APR is not good for the consumer. Most lenders have tinkered with the loans to lower the listed APR but the total cost of credit has increased.

Some of the post codes I operate in list lenders who I know do not do home collected credit in the area. When the customer contacts them they try to sell them other products.

Fair point. But in my area, a credit union (not for profit organisation - who do not do home collections) offers the following example loan:

Loan amount £100.00
Total Charge for Credit £2.62
Total Charge for Credit/£100 £2.62
Regular payment £10.00 every week
No. of payments 11
Total amount payable £102.62
%APR 26.8%
Other charges None

Is the above good for the consumer or not?
Unscrupulous lenders who do not provide accurate information should be reported - which i assume you will be doing?

**Flex-Finance** · 10-08-08

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**tom991** · 10-08-08

Choice is good for the consumer.
Credit unions may not be as commercial but are still good for the consumer.
Unscrupulous lenders should be reported to relevant authorities as appropriate.

This following is an example from the website from a more commercial organisation (Home collected credit company with over 100 agents):

Loan amount £100.00
Typical %APR Typical 188.0% APR
Total Charge for Credit £30.00
Total Charge for Credit/£100 £30.00
Regular payment £5.00 every week
No. of payments 26
Total amount payable £130.00
Other charges No additional charge for home collection or late payment