How to complain about misleading financial ads Jargon buster

Don't get misled by the jargon found in financial ads. Our guide will tell you what the common terms mean.

Saving accounts

AER The annual effective rate is the annual rate of interest, taking into account how often it is paid. It's the most reliable way to compare accounts.

Bonus Some savings accounts offer a bonus interest rate for a set period, usually six months or a year. The interest rate may not be that competitive once the bonus period ends.

Credit cards and loans

APR The annual percentage rate is the annual cost of borrowing. This takes into account the rate of interest, how often it is charged and any fees and insurance premiums that apply. Office of Fair Trading rules demand that 'typical' rates should be granted to at least two thirds of customers.

Mortgages

ERC Early repayment charges apply if you pay back some of the mortgage early.

LTV Loan to value is the percentage of the property's value that you borrow. The higher the maximum allowed, the higher the interest rate is likely to be.

Insurance

Excess The amount you pay for any insurance claim that you make. The lower the excess, the higher the insurance premium is likely to be.

Seeking redress If you've been misled by a financial advertisement and have lost money as a result, make a formal complaint in writing to the company concerned. If your complaint is rejected, take the issue to the Financial Ombudsman Service.