I'm a tester working for a high cost, short-term loan credit company in the UK. Recently, the Financial Conduct Authority (FCA) issued a policy on statements which includes information on how they should be formatted. Currently, my client is showing the interest rate per annum but, from what I understand, they should be showing the interest rate as an annual percentage rate.
From what I can tell, there's a difference as APR takes transactions like disbursement fees and origination fees into account whereas the per annum amount does not.
So, is it a question of semantics? And would the APR amount be the same as a per annum amount?
Also, Google seems to think the interest rate per annum (IRPA) is similar to annual percentage yield but I don't think that's right - APY is a comparable figure for investment purposes whereas, in this case, IRPA is being used for credit.
Note: I've massively edited this question to give a bit more background but the question's the same.