We have a similar regulation in Denmark, where lenders must write the annual cost percentage including all fees. There’s also a maximum legal limit to the percentage and an even lower limit for which loans are allowed to be marketed.
Since it’s a percentage, it mainly affects loans of small amounts, where the fees would be a larger percentage of the total cost.
The purpose is to get rid of the predatory “consumption” loans.
I wish we could do the same to restaurant bills, where the advertised price only shows the price of the main meal to compete/compare with other restaurants, while the total including drinks might be double or more.
We have a similar regulation in Denmark, where lenders must write the annual cost percentage including all fees. There’s also a maximum legal limit to the percentage and an even lower limit for which loans are allowed to be marketed.
Since it’s a percentage, it mainly affects loans of small amounts, where the fees would be a larger percentage of the total cost. The purpose is to get rid of the predatory “consumption” loans.
I wish we could do the same to restaurant bills, where the advertised price only shows the price of the main meal to compete/compare with other restaurants, while the total including drinks might be double or more.