Moneynet Cautions Borrowers Not To Be Seduced By Attractive APR Hiding The Full Costs Of A Loan

* Low APRs draw in borrowers - but PPI pushes up repayments * Read the small print, cautions Moneynet Relying solely on advertised APR rates to choose the best deal on a loan could mislead borrowers into picking the most expensive product on the market rather than the cheapest, warns online financial data comparison site Moneynet. ( http://www.moneynet.co.uk ) "Consumers are led to believe that the cheapest loan is the one with the lowest APR," said Moneynet Chief Executive Richard Brown. "But this is far from the truth - borrowers should be aware that a loan package does not always do what it says on the tin." The reason for this is that the APR simply reflects the cost of the credit without taking into account the cost of other add-ons such as payment protection insurance and early repayment penalties - and it's these extras that earn the loan provider their commission. "This enables them to advertise what looks like a competitive rate to attract customers," said Brown. "Then once the applicant is convinced they have found a great deal the commission-hungry provider will make every attempt to sell them PPI, thus increasing their margin via the back door." Moneynet's message is clear - borrowers should look beyond the APR and ensure they get all the facts before buying. "No-one likes reading the small print but not bothering can mean a loan ends up costing a huge amount more than expected," added Brown. For example, a loan from the RAC of