

E-Commerce Business Lender iwoca Raises $8.2M To Expand In The UK And Europe - ruchir_21hj
http://techcrunch.com/2014/01/09/e-commerce-business-lender-iwoca-raises-8-2m-to-expand-in-the-uk-and-europe/

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rahimnathwani
The 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...](http://www.legislation.gov.uk/all?title=Consumer%20Credit%20%28Advertisements%29%20Regulations%202010))

[1] [http://oft.gov.uk/about-the-oft/legal-
powers/legal/cca/guida...](http://oft.gov.uk/about-the-oft/legal-
powers/legal/cca/guidance)

[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/)

