Vol. 465 No. 5
62 Mr. Broughan asked the Minister for Enterprise and Employment if he will request housing mortgage companies and societies to clearly inform borrowers, on an ongoing basis, of the true actual percentage rate of their loans. [10018/96]
Under the provisions of the Consumer Credit Act, 1995 which came into effect on 13 May 1996, mortgage lenders are now required to state the APR in all advertisements in which a rate of interest is mentioned. Furthermore all housing loan agreements must include on their front page a breakdown of the capital advanced, the period of agreement, the number and amount of each repayment instalment, the cost of the credit and the APR. This ensures that before entering into the agreement borrowers are fully alive to the extent of their financial obligations.
Building societies are required by law to inform borrowers of a change in interest rates. It is also the practice now by both building societies and banks to advertise in the national daily newspapers advising their customers of any changes in interest rates, together with the new rates and the applicable APR.
