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How can a rate conditional on automatic payment be identified?
Check whether the stated rate depends on a payment method or linked account.
The relevant clause should explain what happens if the condition is not maintained.
Compare the obligation with that condition visible and ask about changes to rate or charges. A headline discount does not establish that the same price continues after a payment-method change.
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Definitions
- Nominal interest rate
- Stated rate used to calculate interest under the agreement; it does not describe every other charge.
- Annual comparison measure
- Annualized disclosure used to compare borrowing costs; its calculation and included charges depend on the jurisdiction and product.