Annual Percentage Rate (APR)

APR – this is the abbreviation for annual percentage rate, which refers to the cost of credit that a consumer will pay and is expressed as a simple annualized rate of interest. Under the Federal Truth in Lending Act, which was instituted in 1968 as part of the Consumer Credit Protection Plan, most consumer loan notes where the loan amount is $25,000 or less, must disclose an APR and it must be in large bold type. The Federal Reserve enforces this federal legislation, as well as, the disclosure of any other costs or special terms associated with a consumer loan