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PPI Claim News - 26/5/2011

 
Loan charges: Personal loan rates 'at a ten year high'

It has been revealed that a vast number of people could be experiencing loan charges as personal loan rates are currently at a ten year high.

That is according to Ed Bowsher, head of consumer finance at lovemoney.com, an everyday money site, that aims to help people manage your money more effectively every day.

Mr Bowsher was commenting on research by Moneyfacts.co.uk, which showed that the average rate on a £5,000 loan is at the highest level since May 2000.

He was asked if he thinks people are aware of the rising interest rates that come with bank loans.

"I think people imagine that personal loans must be cheap given the Bank of England's base rate is low. But new data out this week shows that personal loan rates are actually at a ten-year high.

"The current average loan rate is 12.7 per cent which is very expensive in the current economic climate," he said.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.
 ADNFCR-2776-ID-800558421-ADNFCR



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