Credit at extortionate APR rate. What can I do?
There is no legal definition as to which levels of interest are extortionate. It really depends on your own circumstances.
It can be argued under the Consumer Credit Act 1974 that you have entered into an arrangement where the APR was unreasonable. The factors that will be taken into account are:
- Your age, health and experience.
- Any financial pressure you may have been under when you took out the loan.
- The risk which was accepted by the creditor.
- The interest rates current at the time of the agreement.
- The amount of the loan.
- Whether or not you were fully aware of the contract and its terms.
- If any independent financial advice was taken.
- If there were any inducements to enter into the agreement.
- If the lender entered into the agreement with the knowledge that you were likely to be unable to keep up the payments.
