The Annual Percentage Rate - Complexness and Ambiguity
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F15%3A43890233" target="_blank" >RIV/60076658:12510/15:43890233 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
The Annual Percentage Rate - Complexness and Ambiguity
Original language description
The annual percentage rate should enable consumers to better evaluate the favourability of a loan and indicates the percentage of the loan which has to be redeemed within one year, considering instalments, maintenance and other charges that go with the loan. In addition, loan providers are obliged, according to the Czech law, to present this rate with their consumer credit offers. This paper outlines the calculation of the annual percentage rate and points out its ambiguity illustrated with concrete examples which depict its weakness and inconsistencies which may cause a dispute between consumers, loan providers and state inspection authorities. All the presented deficiencies lead to the conclusion that the annual percentage rate is not a suitable toolwhich should be used by financial institutions to help consumers to evaluate the favourability of a loan.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
BB - Applied statistics, operational research
OECD FORD branch
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Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2015
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 9th International Scientific Conference INPROFORUM. Common challenges - Different solutions - Mutual dialogue
ISBN
978-80-7394-536-7
ISSN
2336-6788
e-ISSN
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Number of pages
4
Pages from-to
171-174
Publisher name
Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta
Place of publication
České Budějovice
Event location
České Budějovice
Event date
Nov 5, 2015
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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