Justin Tomlinson – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Justin Tomlinson on 2014-06-17.

To ask Mr Chancellor of the Exchequer, if he will take steps to mandate that APR figures be displayed in cash terms.

Andrea Leadsom

The Government believes it is important for consumers to be able to compare the cost of credit products easily.

The Consumer Credit Directive (CCD) requires the APR to be stated in pre-contract credit information and in the credit agreement itself, as well as in advertising where triggered. In addition, firms must state the total amount payable (TAP), which is the sum of the amount borrowed and the total charge for credit (TCC).

As the CCD is full harmonisation in the relevant areas, it is not open to Member States to require disclosure of the TCC in addition – although the consumer can work this out as the difference between the TAP and the amount borrowed. Lenders can also include the TCC on a voluntary basis.

As previously shared with the Public Accounts Committee, the Government raised the issue of how to present cost information with the European Commission as part of its current review into the implementation of the CCD.