the representative APR applies.” It is also worth bearing in mind that if there is more than one interest rate applicable – for example for credit cards where there may be a different purchase rate and balance transfer rate – the rate applicable to the most common drawdown mechanism must be shown. Similarly, if a rate applies only for a short period (a 0% balance transfer rate for six months), the duration of the period and the go-to rate, if known should also be shown. If the advertisement is for running-account credit, the advertiser should assume a credit limit of £1,200 unless it is known that the credit limit will be less than £1,200. How it should appear According to the BIS, the representative example “must be clear and concise and presented together”. In addition, the representative example must be the most prominent component of the information. In simple terms, the representative example: Must contain certain standard information including a representative APR Must be clear and concise Must be more prominent than the information that triggered the inclusion As the BIS says in its guidelines: “The purpose is to ensure that important information concerning the cost of the credit can be viewed together as a whole, so that the borrower can assess suitability and affordability in the round.” References Credit Financial services in the United Kingdom