Is this legal? leaflet says 5.9%:quoted 7.9%

DorsetDave2

I got a leaflet from Tesco Loans which states the loan rate is 5.9% typical. I know typical means they can quote a higher rate but they give examples of borrowing amounts on the leaflet including one for £5000 ( also others for 10K,15K and 20K)

When I used the online calculator for £5000 it said the rate was 7.9%

Therefore I rang up Tesco to query this and was told that the 5.9% rate does not start until you borrow £7,500

But it does not say this anywhere on the leaflet - nor does it say that the example quote on the leaflet for £5000 is at 7.9%.

This is very misleading and I wonder also if it is Legal too.?

Anyone have any ideas/comments

jonesMUFCforever

This is common practise and used by nearly all lenders these days.

ffacoffipawb

ejones999 wrote:

This is common practise and used by nearly all lenders these days.

Indeed, abolutely "typical". ;O

Rafter

It should be mentioned on the leaflet if this sort of restriction applies. If not Tesco could be in breach of the advertising regulations.

At least 67% of respondents accepted for loans from an ad have to be offered the typical APR and any restrictions, such as a minimum borrowing, have to be clearly stated.

R.

mr_fishbulb

It might have some small print on the leaflet along the lines of "Rate depends on the amount borrowed and personal circumstances"