Annual Percentage Rate

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Annual Percentage Rate

The actual cost of borrowing money, expressed in the form of a yearly measure to allow consumers to compare the cost of borrowing money among several lenders.

The Federal Truth-in-Lending Act (15 U.S.C.A. § 1601 et seq. [1968]) mandates the complete disclosure of this rate in addition to other credit terms.

Cross-references

Truth in Lending Act.

References in periodicals archive ?
2] (for the period 1982 to 2002) to annual percentage rates of change.
The continuous rates of change were converted to annual percentage rates of change using Equation [3] and listed in Table 2.
In 2003, District of Columbia Commissioner of Insurance and Securities Regulation Lawrence Mirel told participants in a legal seminar that the complaints cited failure to provide an annual percentage rate for these fees as an unfair trade practice.
Consumers in need of short-term cash [should] avoid extremely expensive short term loans, and [should] instead build up a savings nest-egg to cover financial emergencies, seek budgeting and debt management assistance from non-profit consumer credit counseling services, and shop for credit based on both the dollar finance charge and the Annual Percentage Rate," advise the two organizations in a summary of a November 2001 study bashing the payday loan industry.
We are also aware that consumers receive in the mail offers for card accounts enclosed in envelopes that may boldly display a term such as an introductory low annual fee or annual percentage rate.

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