Klarna Docs - Representative annual percentage rate (APR).

Representative annual percentage rate (APR).

When a financial promotion must  include a representative APR.

Unless the representative APR is 0%, the representative  APR will need to be clearly displayed within the  example. The representative APR must also be shown  when a financial promotion: 

  • States or implies that credit is available to persons  who might consider their access to credit restricted 
  • Includes a favourable comparison relating to the  credit, whether express or implied, with another  person, product or service; or 
  • Includes an incentive to apply for credit or to  enter into an agreement under which credit is  provided (e.g. the speed or ease of processing the  application, considering or granting an application,  or making funds available to apply for credit or enter  into a credit agreement etc.) 

The content of your promotion will determine  whether the representative APR can be shown in  isolation or whether it must be shown as part of the  ‘representative example’. 

The representative APR is the APR at or below which  you reasonably expect, at the date on which the  promotion is communicated, that credit would be  provided under at least 51% of the credit agreements  which will be entered into as a result of the promotion.  In other words, the % APR that consumers are most  likely to be approved for, should be used as your  representative APR. 

A representative APR must be shown as a % APR’  and used with the word ‘representative’. Where a  representative APR is subject to change it must be  accompanied by the word “variable’’.  

It should be noted that the representative APR must be  given no less prominence than any of the other matters  referred to in this guide (e.g. an inducement or an  incentive to apply for credit etc.). 

The annual percentage rate of charge is calculated  in accordance with the mathematical formula set out in CONC

Triggers for showing representative APR.

  • Our lowest rates ever
  • Been refused for credit?
  • Apply for credit today and get a free pen
  • Simple, quick and easy credit - why wait? Apply now!
  • Get 10% discount on any credit purchase if you apply before 31st March

Does not trigger the need to show a representative APR

  • We offer efficient friendly consumer service
  • We act as a credit broker not a lender