摘要：It can be difficult for a layperson to evaluate the true cost of a loan, and to compare the costs of loans specifying different conditions. The duration of the loan, the timing of interest and capital payments, and additional charges, all add to the complexity of the evaluation. The Credit Contracts Act provides a standard method for calculating a summary measure of the cost of a loan and gives protection for prospective borrowers who were previously faced with measures calculated using different methods, depending on the preference of the lending institution. However, there are some deficiencies in the Act. In particular, the formula specified in the Act for converting a periodic interest rate to an annual rate does not allow for the cost of more frequent payments. The Act should be amended by replacing the specified method with a suggested readily available and easily applied method
