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E-Commerce Business Lender iwoca Raises $8.2M To Expand In The UK And Europe
- rahimnathwani 13y agoThe article mentions ezbob, another player in that space. I was surprised that, although the home page shows an example loan repayment amount, it does not include the interest rate, display of which, I understand, is required by the law[0]. The Office of Fair Trading (OFT) states[1]: "In particular, the regulations provide that - if an advertisement includes an interest rate or any amount relating to the cost of the credit - this triggers a 'representative example' including a 'representative APR'. This must be representative of agreements expected to be entered into as a result of the advertisement, and at least 51 per cent of borrowers must be expected to get the advertised APR or better. The representative APR is also triggered by a non-status or comparative indication or incentive." At first, I thought that perhaps ezbob isn't offering 'consumer' loans, but business loans, but the footer on their web site[2] clearly states their consumer credit licence number (647816). For reference, their example[3] works out to an APR of about 43% (3% per month, compounding: 1.03^12-1 = 0.425...). [0] Consumer Credit (Advertisements) Regulations 2010 (http://www.legislation.gov.uk/all?title=Consumer%20Credit%20%28Advertisements%29%20Regulations%202010 http://www.legislation.gov.uk/all?title=Consumer%20Credit%20...) [1] http://oft.gov.uk/about-the-oft/legal-powers/legal/cca/guidance http://oft.gov.uk/about-the-oft/legal-powers/legal/cca/guida... [2] http://www.ezbob.com/ http://www.ezbob.com/ [3] http://www.ezbob.com/our-loans/repayment-examples/ http://www.ezbob.com/our-loans/repayment-examples/