Question to the HM Treasury:

To ask Her Majesty's Government what independent information resource is available to consumers to check that representative APRs are fairly stated; and what action the Financial Conduct Authority advises customers to take where they are concerned they have been mis-sold under a representative APR that was not fairly stated.

Firms are required by FCA rules to include a representative APR in certain circumstances. The FCA’s handbook provides further rules and guidance on when a representative APR must be shown, how it should be denoted and the level of prominence it must be given.

If an advertisement includes an interest rate or any amount relating to the cost of credit, it must also include a representative example. This must contain certain standard information including a representative APR. The example must be clear and concise and must be no less prominent than the information that triggered the inclusion of the example.

If a customer is concerned that they have been mis-sold a credit agreement, the customer can make a formal complaint to the firm in question in the first instance. If they feel that their complaint has not been dealt with satisfactorily, they are able to refer the matter to the Financial Ombudsman Service (FOS) – an independent body set up to provide arbitration in such cases.