It is all quite legal and here is a an actaual example from to day’s newspaper, typical of most of them. They simply exploit people’s ignorance of the rules of rounding:
A major finance company advertises that its lending rate is 8.4% APR and their accompanying table shows that for a loan of £10,000 over 120 months you would pay £122.05 per month,
If you calculate the true interest rate for these payments, you will find it is 8.447%. Of course in law, the company cannot be accused of telling lies, because to the first decimal place, the interest rate they are quoting is correct.
I note that some people misunderstood my point which is this: Since the true l interest charged is 8.447%, they should not be allowed to call it 8.4%
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