Growth Street asks CMA to expand scope of APR remedy

Growth Street has submitted a consultation response to the CMA on behalf of the APR4SMEs campaign urging the CMA to reconsider the relatively narrow scope of the proposed remedy relating to APR. This follows the publication of the CMA's provisional decision on remedies (PDR) as part of its retail banking market investigation.

"The CMA’s PDR proposes to make the disclosure of APR mandatory on all unsecured loans made to businesses for amounts up to £25,000 in an effort to correct for identified adverse effects on competition (AECs). This is most welcome: greater price transparency within the commercial finance landscape will undoubtedly improve competition and deter businesses from unknowingly entering into high cost finance agreements. 

"We are concerned that the remedy as proposed has been designed for ease of implementation by finance providers, and the scope limited so that is has negligible impact on those that currently benefit from the identified AECs. We urge the CMA to propose a more comprehensive solution that helps SMEs more easily compare the cost of finance."

James Sherwin-Smith

CEO at Growth Street