Finance Questions

Question: Are these finance companies ripping us off?

With the interest rates at a new low (uk) and vat being lowered are finance companies obliged by law to lower payments from customers.
I have been told unofficially that they do not have to legally lower payments but,I thought that the vat rate was set by the government and was in fact the most anyone can charge customers.
Can you please help with this as it needs clarifying.

Answer: VAT is a set rate and as you said is set by government. Interest rates are set by finance companies. If the Bank of England lower or increase the base lending rate the majority of High Street lenders normally follow the lead. however they are not legally obliged to. If you have a poor credit record or you shop on store cards the interest rates on these tends to be higher and there is less chance of the interest rate being reduced.

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